Annual Report 2025
Value-based performance

 

 

Crop Science

 

Pharmaceuticals

 

Consumer Health

 

Group2

€ million

 

2024

 

2025

 

2024

 

2025

 

2024

 

2025

 

2024

 

2025

EBIT1

 

(2,756)

 

(2,532)

 

2,790

 

3,127

 

1,028

 

912

 

(71)

 

(1,077)

Income taxes3

 

661

 

608

 

(670)

 

(750)

 

(247)

 

(219)

 

17

 

258

NOPAT1

 

(2,095)

 

(1,924)

 

2,120

 

2,377

 

781

 

693

 

(54)

 

(819)

Average capital employed1

 

35,394

 

29,678

 

20,940

 

19,833

 

9,762

 

9,753

 

64,954

 

58,055

ROCE1

 

–5.9%

 

–6.5%

 

10.1%

 

12.0%

 

8.0%

 

7.1%

 

–0.1%

 

–1.4%

WACC1, 4

 

6.5%

 

7.0%

 

6.5%

 

7.0%

 

6.5%

 

7.0%

 

6.5%

 

7.0%

1

For definition see A 2.3 “Alternative Performance Measures Used by the Bayer Group.”

2

Including the Reconciliation

3

24% on EBIT; based on historical average of tax rates

4

At the divisional level, ROCE is compared with the WACC of the Bayer Group as we do not report WACC for the individual divisions.

Bayer’s ROCE amounted to minus 1.4% in 2025 (2024: minus 0.1%) and was therefore significantly below the cost of capital (7.0%).

The Crop Science Division registered a slight improvement in EBIT thanks to lower special items, while the average capital employed declined, largely due to the impairment losses recorded in 2024 and the allocations to provisions for litigations recognized in 2025. As such, ROCE amounted to minus 6.5%.

At Pharmaceuticals, EBIT was up significantly year on year, while the average capital employed declined slightly. As a result, ROCE increased overall.

At Consumer Health, the average capital employed was roughly at the prior-year level, while EBIT decreased due to special charges in 2025, with profit before special items having remained stable. This resulted in a decline in ROCE.

The following overview shows the components of the average capital employed used in calculating ROCE.

Components of capital employed1

€ million

 

Dec. 31, 2024

 

Dec. 31, 2025

Goodwill

 

30,016

 

28,061

Other intangible assets

 

22,112

 

20,622

Property, plant and equipment

 

13,456

 

12,649

Other financial assets2

 

140

 

228

Inventories

 

13,467

 

12,378

Trade accounts receivable

 

8,966

 

9,077

Other receivables2

 

2,119

 

1,931

Deferred tax assets2

 

4,979

 

4,855

Claims for income tax refunds

 

1,480

 

1,504

Assets held for sale

 

22

 

23

Gross capital employed

 

96,757

 

91,328

Other provisions2

 

(10,921)

 

(15,590)

Trade accounts payable

 

(7,518)

 

(7,081)

Other liabilities2

 

(2,933)

 

(3,520)

Refund liabilities

 

(5,914)

 

(5,648)

Contract liabilities

 

(3,955)

 

(3,903)

Financial liabilities2

 

(18)

 

(5)

Deferred tax liabilities2

 

(673)

 

(672)

Income tax liabilities

 

(1,893)

 

(1,732)

Capital employed1

 

62,932

 

53,177

Average capital employed1

 

64,954

 

58,055

1

For definition see A 2.3 “Alternative Performance Measures Used by the Bayer Group.”

2

Selected items forming part of the line item in the statement of financial position; items that were predominantly non-interest-bearing or nonoperating in nature were eliminated from capital employed.