Bayer Crop Science Sees Strong Q2 Performance with Strategic Gains Despite Litigation Costs

07 August 2025, Leverkusen: Bayer’s Crop Science division delivered a robust second quarter, driven by gains in the corn seed segment and operational efficiencies, even as the company navigates ongoing litigation challenges and currency headwinds. The German life sciences major posted Q2 2025 Group sales of €10.739 billion, reflecting a 0.9% increase (Fx & portfolio adj.), while EBITDA before special items reached €2.105 billion (down 0.3%).

Crop Science Division Drives Growth Amid Regulatory Headwinds

Sales in Bayer’s Crop Science business rose 2.2% (Fx & portfolio adj.) to €4.788 billion, with Corn Seed & Traitsseeing a notable 29.5% surge due to global price hikes and acreage expansion, particularly in North America. This offset declines in soybean (-18.1%) and cotton (-25.5%) seeds following the vacatur of dicamba label approvals in the U.S.

Despite challenges in the insecticides portfolio—mainly due to the expiration of Movento™ in Europe—the herbicide segment held steady, with glyphosate-based product sales matching last year’s volumes.

EBITDA before special items in Crop Science jumped 32.3% to €693 million, buoyed by volume phasing from Q1 and cost reductions, lifting the division’s margin by 4 percentage points to 14.5%.

Progress in R&D and Regulatory Approvals

Bayer continues to strengthen its crop protection pipeline, announcing that the U.S. EPA has proposed approval for dicamba, a key product in Bayer’s herbicide portfolio. The company also filed for regulatory approvals of its new herbicide molecule, Icafolin, in the U.S., Canada, Brazil, and the EU. This next-generation molecule holds blockbuster potential, adding momentum to Bayer’s R&D investments in sustainable agriculture.

Litigation Strategy and Provisions Update

The company continues to face legal pressures, particularly in the U.S., linked to glyphosate and PCB litigations. In Q2, Bayer added €1.2 billion in provisions for glyphosate cases and €530 million for PCB-related liabilities.

CEO Bill Anderson reaffirmed Bayer’s commitment to resolving litigation risks by 2026, stating that “everything remains on the table” as part of a multi-pronged litigation strategy. Recent confidential settlements have removed thousands of glyphosate cases, and the U.S. Supreme Court is expected to make a decision on the Durnell case by mid-2026, which could set a legal precedent.

Group Financials Highlight Currency Pressure, Litigation Costs

Despite operational gains, Group EBIT fell to €13 million, impacted by €981 million in special charges, mainly litigation-related. Net income stood at minus €199 million, while core earnings per share rose 30.9% to €1.23, thanks to financial efficiencies and tax savings.

Free cash flow dropped to €125 million, primarily due to higher short-term incentive payouts and timing shifts in receivables from the Crop Science business. Net financial debt fell 2.9% versus Q1 2025, supported by favorable currency effects, to €33.274 billion.

Other Divisions Show Mixed Results

• Pharmaceuticals posted flat sales at €4.470 billion, with new therapies like Nubeqa™ and Kerendia™ growing sharply, offset by declining Xarelto™ revenue post-patent expiry. EBITDA dropped 17.2% due to product mix shifts and increased R&D.
• Consumer Health sales remained stable at €1.427 billion, with EBITDA up 5.4%, helped by cost efficiencies and stable demand in Dermatology and Allergy segments.

Outlook: Upgraded Sales Guidance Despite Currency Risk

Citing strong YTD performance in Pharmaceuticals and resilience in Crop Science, Bayer has raised its 2025 guidance for currency-adjusted sales and earnings. However, it expects continued geopolitical uncertainty and currency volatility to pose challenges in the second half of the year.

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