Bayer Poised for Turnaround Amid Challenging Financial Forecast

Bayer has announced plans to return to earnings growth by 2026 after a tough financial year. CEO Bill Anderson is under pressure to deliver restructuring that targets improved operating margins by 2029, despite projected earnings challenges in 2025.

Bayer, a German company known for its pharmaceuticals and agricultural products, has set its sights on returning to earnings growth by 2026, despite facing a challenging financial year. The company saw its shares rise to a four-month high as CEO Bill Anderson addressed investor concerns over ongoing transformational efforts.

The company projects a difficult year in 2025, forecasting stagnant net sales and a decline in earnings and free cash flow. However, Anderson has committed to refocusing Bayer's strategies, with improvements expected to materialize in subsequent years. By 2029, Bayer aims to achieve an adjusted operating margin in the mid-twenties, a significant increase from last year's 19.4%.

Despite pressures from ongoing U.S. litigation over Roundup, Bayer is advancing restructuring measures, including managerial staff reductions and streamlined decision-making processes. The company, which reported an adjusted EBITDA drop in Q4 last year, forecasts a slight decrease in EBITDA for 2024, aligning with market expectations.

(With inputs from agencies.)