Reduce debt, realign organisational model, reduce legal risks
The company, which is currently under intense public scrutiny Bayer Group CEO Bill Anderson made a forward-looking statement on Tuesday during the annual press conference in London.
The Leverkusen-based pharmaceutical and agrochemical company reported that its adjusted Goals for the 2023 financial year. The CEO said: „We are a high-impact life science company driven by a great mission and we have three strong divisions.“ However, he also pointed out that there was an urgent need for action in several areas.
Organisational model - no split
According to its press release, Bayer intends to build a strong pharmaceutical pipeline, reduce legal risks and lower debt over the next 24 to 36 months. The Group also intends to further introduce the new organisational model called Shared Ownership (DSO). For this Organisational model, Bayer had already decided several weeks ago in favour of a new corporate strategy that would reduce hierarchies, eliminate bureaucracy and speed up decision-making processes.
The plans presented on Tuesday are intended to improve the Group's overall performance. According to his explanations, Bayer intends to focus intensively on customers and products and to be leaner and more effective than its competitors in every area of the company's business.
In order to reduce the legal risks and associated uncertainties, the company says it will adapt its strategy and pursue new approaches both inside and outside the courts.
Bill Anderson has at this stage rejected the idea of splitting up the Bayer Group, as is currently often publicly demanded. However, Anderson said: „Of course we will remain open to everything.“
Lower sales
In 2023, Group sales adjusted for currency and portfolio effects (Fx & portfolio adj.) fell by 1.2 per cent compared to the previous year to around 47.63 billion euros. EBITDA pre exceptionals fell by 13.4 per cent to around EUR 11.70 billion. The EBITDA margin pre exceptionals reached 24.6 per cent. It was therefore 2 percentage points lower in 2023 than in 2022.
Outlook
For the current year, Bayer expects currency-adjusted sales of between 47 billion and 49 billion euros. Bayer believes that EBITDA pre exceptionals may be between EUR 10.7 billion and EUR 11.3 billion after adjusting for currency effects. With regard to net financial debt, the Group expects a figure of between EUR 32.5 billion and EUR 33.5 billion (currency-adjusted) at the end of 2024.