Bayer, quarter down but better than market estimates

Profit fell for Bayer in the first quarter, but the group still beat analysts' estimates thanks to better-than-expected performance in the prescription drugs and agriculture divisions. Gross operating profit (EBITDA), adjusted for one-off items, declined to EUR 4.41 billion, which was still above the average analyst estimate of EUR 4.15 billion published on the company's website. Net profit stood at €2 billion in the first quarter, down 8%, as total revenue, adjusted for currency and portfolio effects, fell 0.6% to €13.8 billion, below the €14.1 billion forecast by analysts as reported by Factset.

Risultati I° trimestre 2024

Dati in milioni di euro

Comunicato Bayer

"The pharmaceuticals division showed improvement in terms of growth and profitability, and the crop science division outperformed in a difficult market," said the group in a note, which simultaneously lowered its full-year earnings forecast, blaming the decision on negative currency effects.

Following the news, the share price in Frankfurt opened higher. The German group's shares have a negative balance of over 12% since the beginning of the year and over 45% in the last twelve months of trading.

Based on end-March exchange rates, Ebitda before extraordinary items is expected to be between EUR 10.2bn and EUR 10.8bn for the full year 2024, compared to a previous target of between EUR 10.4bn and EUR 11bn. A result that will in any case be down from EUR 11.7 billion in 2023.

The group's reorganisation operations seem to be frozen at the moment. CEO Bill Anderson had stated in March that he would suspend all preparations for a reorganisation of Bayer's activities for up to three years. Anderson, who became CEO in June 2023, has, in fact, faced a complex start to his term of office due to a continuing wave of litigation in the US over an alleged carcinogenic effect of the herbicide glyphosate and a major setback in drug development at the end of last year.