March 1, 2022
The Bayer Group had a successful year in 2021, both operationally and strategically. The three divisions - Crop Science, Pharmaceuticals and Consumer Health - all grew last year and outpaced their respective markets.
The company invested a record amount in research and development and made numerous acquisitions.
Crop Science achieves record sales
In the agricultural business, Bayer increased sales by 11.1% to $20.54 billion. The division grew sales significantly across all regions, especially in Latin America and Asia/Pacific.
Corn seed and trait sales were up 9.2% thanks to increased market share in North America and Latin America, as well as to higher prices worldwide.
Bayer grew sales by double-digit percentages in the areas of herbicides (15.4%), fungicides (13.8%) and soybean seed and traits (14.9%). The main drivers were price increases for glyphosate-based products and higher Fox Xpro fungicide volumes in Latin America. Soybean seed and traits benefited from higher volumes and prices, particularly in North America and Latin America.
Overall, growth in earnings was mainly driven by higher prices and volumes as well as contributions from ongoing efficiency programs. By contrast, earnings were diminished by a largely inflation-fueled increase in the cost of goods sold, as well as by negative currency effects.
Glyphosate in court
Bayer sees encouraging steps regarding glyphosate litigation in the United States. The U.S. Supreme Court showed interest in the Hardeman case by inviting the Solicitor General, representing the U.S. Government, to file a brief on whether this case should be accepted.
The company has won two consecutive jury trials on product liability cases in California. Bayer says it will continue to execute its five-point plan and is prepared for any outcome at the Supreme Court.
Bayer is aiming to significantly increase sales, earnings and free cash flow. In 2022, the company expects to generate sales of over $51 billion, a 5% increase year-over-year.
As part of its forecast for the divisions, Bayer is anticipating Crop Science to lead divisions in sales growth with an increase around 7%.
In addition, Bayer will continue its goals toward sustainability. Bayer had reduced its direct and indirect greenhouse gas emissions by 11.5% in 2021 and is on course to be carbon-neutral by 2030.
Source: Bayer, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.
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