Bayer CropScience Ltd has announced a significant boost in their financial performance for the September quarter of the current fiscal year.
The company reported a substantial 37% increase in net profits, with earnings reaching ₹222.9 crore as compared to ₹162.6 crore in the same period the previous year.
Their revenue for the September quarter also saw a notable rise, climbing by 11.38% to ₹1617.2 crore, in contrast to ₹1451.9 crore in the corresponding quarter of the previous year.
Looking at the broader picture of the first half of the current fiscal year, Bayer reported a profit of ₹551.4 crore, marking an 18% growth compared to ₹465.2 crore from the same period in the previous year.
Additionally, the revenue for this period witnessed a healthy increase of around 8%, reaching ₹3393.6 crore in comparison to ₹3147.3 crore from the previous year.
Simon Wiebusch, Vice Chairman and Managing Director and CEO of Bayer CropScience Ltd expressed his thoughts on the company's performance. He highlighted the challenging environment they faced due to delayed, deficient, and erratic monsoons, along with increased costs of goods sold (COGS).
Despite these challenges, the company managed to achieve an impressive 11% growth in revenue from operations during the second quarter of FY24. This growth was attributed to strong volume increases in Roundup, driven by market demand and product availability, which helped offset lower prices. DeKalb corn seed sales also played a crucial role in their growth, supported by favourable acreages and commodity prices.
Additionally, the strong product liquidation of their crop protection portfolio, particularly LAUDIS, NATIVO, and COUNCILactiv, contributed significantly to their success.
Simon Britsch, the Chief Financial Officer of Bayer CropScience Ltd, emphasized the company's commitment to efficient expense management and maintaining optimal channel inventory. These efforts, combined with consistent performance across their portfolio, particularly in corn seeds and crop protection, led to a remarkable 16% growth in Profit Before Tax. He also mentioned the company's ongoing investment in growth initiatives, with a special focus on digitalization. Under this initiative, their drone spray service currently operates in six states across the country.
Moreover, the company's Board of Directors, during their meeting on November 3, 2023, declared an interim dividend of ₹105 per equity share with a face value of ₹10 each for the FY24, underlining their commitment to rewarding their shareholders.
Also, Bayer CropScience Ltd has reported robust financial results, with substantial profit and revenue growth, despite facing challenges such as adverse monsoons and rising costs. Their strategic focus on key growth drivers, expense management, and digitalization has proven effective in driving their success.
