Buy Or Sell Opportunity • May 17
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 38% to S/20.00. The fair value is estimated to be S/16.25, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.8% over the last 3 years. Earnings per share has declined by 76%. Buy Or Sell Opportunity • Feb 26
Now 44% overvalued after recent price rise Over the last 90 days, the stock has risen 43% to S/20.10. The fair value is estimated to be S/13.93, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 2.7% over the last 3 years. Earnings per share has declined by 66%. Reported Earnings • Nov 04
Third quarter 2023 earnings released: EPS: S/0.092 (vs S/0.43 loss in 3Q 2022) Third quarter 2023 results: EPS: S/0.092 (up from S/0.43 loss in 3Q 2022). Revenue: S/77.4m (down 6.6% from 3Q 2022). Net income: S/1.36m (up S/7.73m from 3Q 2022). Profit margin: 1.8% (up from net loss in 3Q 2022). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 02
Second quarter 2023 earnings released: EPS: S/0.18 (vs S/0.44 in 2Q 2022) Second quarter 2023 results: EPS: S/0.18 (down from S/0.44 in 2Q 2022). Revenue: S/90.0m (up 11% from 2Q 2022). Net income: S/2.64m (down 59% from 2Q 2022). Profit margin: 2.9% (down from 7.9% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has remained flat, which means it is well ahead of earnings. New Risk • Jun 17
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.1% Last year net profit margin: 7.2% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 12% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (S/207.6m market cap, or US$57.4m). Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 2 highly experienced directors. No independent directors (4 non-independent directors). Chairman of the Board Rene Klemm was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 05
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: S/82.9m (down 20% from 3Q 2021). Net loss: S/6.38m (down 297% from profit in 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • Aug 01
Second quarter 2022 earnings released: EPS: S/0.44 (vs S/0.98 in 2Q 2021) Second quarter 2022 results: EPS: S/0.44 (down from S/0.98 in 2Q 2021). Revenue: S/81.4m (down 19% from 2Q 2021). Net income: S/6.44m (down 55% from 2Q 2021). Profit margin: 7.9% (down from 14% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has remained flat and the company’s share price has also remained flat. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 2 highly experienced directors. No independent directors (4 non-independent directors). Chairman of the Board Rene Klemm was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Feb 19
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: S/1.38 (down from S/2.51 in FY 2020). Revenue: S/381.4m (up 16% from FY 2020). Net income: S/20.3m (down 45% from FY 2020). Profit margin: 5.3% (down from 11% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Board Change • Nov 26
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 1 highly experienced director. No independent directors (4 non-independent directors). Chairman of the Board Rene Klemm was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Nov 03
Upcoming dividend of S/24.45 per share Eligible shareholders must have bought the stock before 10 November 2021. Payment date: 17 November 2021. Trailing yield: 173%. Within top quartile of Peruvian dividend payers (22%). Higher than average of industry peers (5.2%). Reported Earnings • Feb 18
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: S/327.9m (up 13% from FY 2019). Net income: S/37.0m (up 50% from FY 2019). Profit margin: 11% (up from 8.4% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has remained flat. Announcement • Feb 03
Bayer Launches The Nutrient Gap Initiative to Expand Access to Vitamins and Minerals for 50 Million People Annually Worldwide by 2030 Bayer is launching “The Nutrient Gap Initiative” which expands access to vitamins and minerals for underserved communities to help combat malnutrition. The program’s goal is to reach 50 million people in underserved communities per yearby 2030 through direct action and in partnership with critical non-governmental organizations (NGOs) with a focus on intervention, education, and advocacy. The Nutrient Gap Initiative is the first program which will impact Bayer’s Consumer Health division sustainability commitment to enable access to everyday health for 100 million underserved people, by 2030. Access to the right nutrients during the first 1,000 days of life – during pregnancy and through the first two years – is critical to a mother’s health as well as the healthy growth and development of a baby. Unfortunately, vitamin and mineral deficiencies are a major public health problem in underserved communities, with women and children being particularly vulnerable. Almost 50% of young women and adolescent girls in low- and middle-income countries have inadequate vitamin and mineral intakei and at least half of children worldwide under age 5 suffer from this deficiencyii. The consequences of vitamin and mineral deficiencies worsen gradually over time, resulting in significant health consequences across the lifespan and ultimately exacerbates the cycle of poverty. The company’s work will begin with a focus on pregnant women and babies, given they are among the most vulnerable and need even more support due to the impact of COVID-19. Preventing vitamin and mineral deficiencies early in pregnancy can help mitigate poor pregnancy outcomes, such as stunted growth and impaired neurological development, which lead to long-term health and economic consequences for individuals and societies. As the global leader in prenatal supplements, Bayer is committed to helping all parents and parents-to-be have a happy and healthy baby and is working with several partners to bring prenatal interventions to underserved communities: Reaching up to 4 million underserved pregnant women and their babies annually with a daily Multiple Micronutrient Supplementation (MMS) intervention in partnership with global non-governmental organization Vitamin Angels and its partners. MMS is a formulation of essential vitamins and minerals that women need to help ensure their health, a healthy pregnancy, and a healthy baby. Programs will be implemented to ensure high adherence and acceptance by the population, and to encourage the inclusion of this prenatal intervention into regular local antenatal health services to help impact the first 1,000 days of life (during pregnancy and through the first two years). Interventions will begin in Indonesia, Mexico, the United States and Vietnam and will roll-out to other countries in subsequent years. This partnership is in addition to the work Bayer is already doing to make vitamins and minerals more affordable and accessible around the world. Developing a nutrition education curriculum with Vitamin Angels and other partners to empower healthcare professionals and pregnant women in underserved communities. This program will effectively introduce and scale MMS for pregnant women. Company leading prenatal brand Elevit™, which is committed to helping more babies have a healthy start in life, has created “Every Beginning,” an initiative to build global awareness for prenatal nutrition deficiency and helping parents and parents-to-be connect through universal experiences and gain access to vital nutrients. Advancing support for women and girls in driving their own healthcare in partnership with the White Ribbon Alliance. In Indonesia, programming will focus on health education focused on maternal anemia; in the United States, programming will focus on helping pregnant women and new moms confidently navigate the healthcare system, self-care practices and maternal nutrition. Partnering with leading NGOs across sectors to launch a cross-industry collaboration to support the global movement around maternal health. The goal is to drive collective action and scale access of MMS. Currently, only 70% of low- and middle-income communities have access to iron-folic acid (IFA) during pregnancyi, which is no longer considered sufficient, based on recent World Health Organization guidelines. Through this work, Bayer will aim to help close this gap. 
