Bayer posts loss in the billions: outlook clouded
After a difficult year so far in 2023, Bayer has little hope of a significant improvement in the coming year. In view of the current market dynamics, growth prospects remain rather weak, as the pharmaceutical and agrochemical company announced on Wednesday when presenting its third-quarter results. There are also still challenges with regard to profitability.
In the third quarter just ended, the Leverkusen-based company once again felt the effects of falling prices for the weedkiller glyphosate. Sales fell by just over eight percent to EUR 10.3 billion compared to the same period last year. Negative currency effects also had a negative impact. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell by almost a third to 1.7 billion euros, which was more than analysts had expected. The bottom line was a loss of 4.57 billion euros, partly due to further impairments in the agricultural business. A year ago, Bayer posted a profit of 546 million euros.
Group CEO Bill Anderson, who has been in office since June, intends to present his plans for the future corporate structure in March. Bayer is currently looking at various options - in addition to retaining three divisions, a separation of the Consumer Health division or the Crop Science division is also being examined. The latter comprises the agricultural business, which also includes glyphosate.
Despite the challenges in the agricultural sector, Bayer's pharmaceuticals division continues to demonstrate resilience, maintaining strong performance in the quarterly figures. However, the overall quarterly figures for the company show a loss due to the impact of falling glyphosate prices and other factors in the agriculture and pharmaceuticals sectors.
Source: www.dpa.com
