Bayer CropScience sees revenue and profit dip in Q1 amid weather and supply issues

Bayer CropScience Limited has announced its unaudited financial results for the first quarter (Q1) of the fiscal year 2024-25. The company reported a Revenue from Operations of Rs. 1,631.2 crore, down from Rs. 1,739.6 crore in the same period last year. Profit Before Tax (PBT) also declined, at Rs. 315.8 crore compared to Rs. 406.1 crore in Q1 FY 2023-24.

Commenting on the quarterly results, Simon Wiebusch, Vice Chairman/Managing Director and CEO, of Bayer CropScience Limited said, “Despite the slow progression of monsoons and the impact of low reservoir levels on our first quarter, we still achieved a 3% growth in liquidation. Business picked up towards the end of June, coinciding with increased farming activity, indicating a positive market shift. However, supply constraints in our seeds business affected availability and increased the cost of corn seeds.”

Simon Wiebusch acknowledged the challenges faced during the quarter but expressed optimism for the upcoming season. "While revenue from operations declined, we remain hopeful due to promising monsoon coverage across the country. We will continue to monitor rain distribution, cropping patterns, and industry inventory levels closely," Wiebusch stated.

Simon Britsch, Chief Financial Officer, Bayer CropScience Limited, while speaking about the quarterly results said, “We continue to focus on sustained operational expense management and rigorous working capital discipline, including targeted efforts in receivable collections. As we look forward, we maintain an optimistic outlook on our future prospects, confident in our ability to build momentum and steady growth investments.”

Bayer CropScience remains cautiously optimistic about the upcoming season, with expectations of improved market conditions driven by favourable monsoon coverage. However, the company remains vigilant of potential challenges related to rain distribution and price pressures due to high industry inventories.