Reduce debt, realign organizational model, reduce legal risks
At the Bayer Group, which is currently under heavy public scrutiny, the Chairman of the Board of Management, Bill Anderson, made a forward-looking statement at the annual press conference in London on Tuesday.
The Leverkusen-based pharmaceutical and agrochemical company reported that it had achieved its adjusted targets 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.
Organizational 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 organizational model called Shared Ownership (DSO). Bayer had already decided on this organizational model, which is intended to reduce hierarchies, eliminate bureaucracy and accelerate decision-making processes, several weeks ago.
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 now rejected the idea of splitting up the Bayer Group, as is currently frequently being called for publicly. However, Anderson said: "Of course we will remain open to everything."
Lower turnover
In 2023, Group sales adjusted for currency and portfolio effects (Fx & portfolio adj.) fell by 1.2% compared to the previous year to around EUR 47.63 billion. EBITDA pre exceptionals fell by 13.4% to around EUR 11.70 billion. The EBITDA margin pre exceptionals reached 24.6%. It was therefore 2 percentage points lower in 2023 than in 2022.
Outlook
For the current year, Bayer expects currency-adjusted sales of EUR 47 billion to EUR 49 billion. Bayer expects EBITDA pre exceptionals to possibly range 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.