Bayer Crop Science Aims for €3 Billion Free Cash Flow by 2029
Bayer Crop Science has outlined a five-year growth strategy targeting more than €3 billion in free operating cash flow by 2029. The division plans to achieve this through incremental sales of over €3.5 billion, margin improvements exceeding €1 billion, and cumulative working-capital releases totaling €1.5 billion. Seeds, traits, and new crop-protection products are central to the strategy, with a focus on corn, soybeans, Preceon Smart Corn, Plenexos, Icafolin, gene editing, AI, and biological innovations. The company is restructuring its supply network by reducing in-house active-ingredient production from 35% to 25%, consolidating manufacturing sites such as Dormagen (from six plants to three), integrating Knapsack operations into Dormagen, exiting Frankfurt activities, and streamlining Kansas City facilities. CFO Guru Ramamurthy reported that the division has already achieved €380 million in annualized margin benefits—40% of its 2029 target—and expects to release approximately €1 billion in working capital by year-end. Bayer Crop Science also highlighted progress on reducing inventory and improving payment terms, contributing to a projected rise from €1.4 billion free operating cash flow in 2025 to over €3 billion by the end of its five-year plan.
Topics: agriculture cash flow targets innovation strategy restructuring