Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Bayer's first-quarter adjusted profit falls less than expected

Published 05/14/2024, 03:24 AM
Updated 05/14/2024, 03:31 AM
© Reuters. The logo of Bayer AG is pictured outside a plant of the German pharmaceutical and chemical maker in Wuppertal, Germany August 9, 2019. REUTERS/Wolfgang Rattay/Files

By Ludwig Burger

FRANKFURT (Reuters) -Bayer beat first-quarter analyst forecasts as it reported a slight drop in adjusted earnings on Tuesday, providing a respite for the CEO's turnaround efforts.

The group also lowered its full-year earnings outlook, citing negative currency effects, but retained its operating forecast.

The company's quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-off items, slipped 1.3% to 4.41 billion euros ($4.76 billion), above an average analyst estimate of 4.15 billion euros posted on the company's website.

"The Pharmaceuticals Division saw gains in growth and profitability, and the Crop Science Division outperformed in a difficult market," Bayer (OTC:BAYRY) said in a statement.

Shares in the group were up 2.3% shortly after the 0700 GMT open.

CEO Bill Anderson said in March he would suspend for up to three years any preparations to break apart the German maker of pharmaceuticals, crop protection products and consumer health remedies.

His focus is instead on changing Bayer's management structure as well as on cutting debt and dealing with U.S. lawsuits.

Anderson, who became CEO in June 2023, has had a tumultuous start with a continued wave of litigation about an alleged cancer-causing effect of weedkiller glyphosate and a major setback in drug development late last year.

Last month, he clearly won a confidence vote at his first annual general meeting at the helm of the embattled healthcare and agriculture group, defying a challenge from one German fund managing house.

The company said on Tuesday that based on end-of-March exchange rates, EBITDA before special items would likely come in between 10.2 billion and 10.8 billion euros in 2024, compared with a previous target range of between 10.4 billion and 11 billion euros.

That would be down from 11.7 billion in 2023.

Under Anderson's push to speed up business decisions and slash excess bureaucracy, Bayer cut the equivalent of 1,500 full-time jobs during the first quarter.

The company, which had close to 100,000 staff at the end of 2023, has not published any job reduction targets, saying only cutbacks would be significant.

© Reuters. The logo of Bayer AG is pictured outside a plant of the German pharmaceutical and chemical maker in Wuppertal, Germany August 9, 2019. REUTERS/Wolfgang Rattay/Files

"The most important measure of our impact will be much greater than a job number or a cost savings target. It will be in our ability to innovate, grow our businesses, and improve life for our customers," the CEO said in the statement.

($1 = 0.9273 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.