Lower glyphosate prices hurt Bayer sales

Bayer Group, a pharmaceutical and consumer health goods giant and one of the world’s largest seed and ag chemical companies, said on Tuesday that its sales had fallen by 3.1 billion euros in 2023, with lower herbicide prices as a factor. Sales by the crop sciences division, which accounts for half of Bayer’s revenue, were down by 1.9 billion euros, or 3.7%, on a currency- and portfolio-adjusted basis.

Chief executive Bill Anderson said Bayer would spend the next two or three years implementing a new operating model called Dynamic Shared Ownership and rebuilding its product lines. “Our answer is ‘not now’ ” to a possible breakup of Bayer, he said, “and this shouldn’t be misunderstood as ‘never.’”

The new operating system “will enable Crop Science to strengthen its leading position in agriculture through generational innovation, with 10 blockbusters reaching the market over the next decade,” said the company.

Lower sales by the agricultural division were “mainly attributable to significantly lower prices for glyphosate-based products due to reduced prices for generics,” Bayer said. Overall, herbicide sales were down 26% after currency and portfolio adjustments. “Amid an inflation-driven market environment, the rest of the portfolio saw a positive price development overall, driven by innovative products and higher commodity prices.” Corn, fungicide, and soybean sales rose, with the corn seed and traits business leading the way. Glyphosate is the most widely used herbicide in the world.

Bayer’s 2023 sales were 47.6 billion euros, or roughly $51.6 billion. The company said it expected sales of 47 to 49 billion euros in 2024. Sales at the Crop Science unit, which totaled 27.3 billion euros last year, were expected to range from a 1% decline to a 3% gain in 2024.