Bayer’s Agriculture Sector, Consumer Health Drives Upward Outlook

The Bayer AG logo is painted in front of the historic headquarters of the German pharmaceutical and chemical manufacturer in Leverkusen, Germany, on April 27, 2020. REUTERS/Wolfgang Rattay

FRANKFURT (Reuters) – Agriculture and pharmaceutical company Bayer (BAYGn.DE) said on Thursday that it will set a budget for 2022 following strong demand from farmers for its seeds and pesticides and rising sales of consumer health products. raised its earnings outlook.

Bayer now charges interest, tax, depreciation and We target earnings before amortization and amortization (EBITDA). said in a statement.

Bayer is being hit with legal costs over allegations that herbicides acquired in Monsanto’s acquisition cause cancer. Company website.

Prices for agricultural commodities such as corn and soybeans soared globally after Russia’s invasion of Ukraine disrupted agriculture and grain shipping in Ukraine, prompting farmers in other regions to buy more to boost production. of chemicals and seeds.

Crop Science, which generated the majority of Bayer’s earnings in the first half, surged adjusted EBITDA by more than 70% to €1.75 billion in the second quarter, beating the market consensus of €1.56 billion.

In contrast, litigation settlements and write-downs resulted in a net loss of around €300 million in the quarter when analysts had expected a net profit of around 1.5 billion, impacted by special charges of €2.1 billion. did.

This included €694 million set aside for a possible settlement with the state of Oregon over wastewater contaminated with PCBs, chemicals manufactured by Monsanto by 1977.

Other charges include restructuring actions due to significantly higher interest rates and write-downs on certain assets.

($1 = 0.9842 Euro)

Reporting by Ludwig Burger, Editing by Rachel More, Maria Sheahan, Tomasz Janowski

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