Bayer Swung to 3Q Net Profit, Raises Outlook Amid Agricultural Recovery -- Update
November 09 2021 - 03:28AM
Dow Jones News
By Cecilia Butini
German pharmaceutical-and-agricultural conglomerate Bayer AG on
Tuesday swung to a profit for the third quarter and said sales
rose, driven by a recovery in its agriculture business.
The company posted net profit of 85 million euros ($98.5
million), compared with a net loss of EUR2.74 billion a year
earlier, when it experienced headwinds in the agriculture
division.
Earnings before interest, taxes, depreciation and amortization
before special items came in at EUR2.09 billion, up from EUR1.80
billion the year prior. Earnings before interest and taxes were
EUR530 million, compared with a loss before interest and taxes of
EUR9.40 billion, the company said
Sales rose to EUR9.78 billion from EUR8.51 billion, Bayer
said.
Sales in the agricultural division--whose legal woes related to
the Roundup weedkiller have prompted the company to set aside
billions in provisions--rose almost 26% in the quarter, coming in
at EUR3.85 billion, Bayer said.
The sales boost was driven by gains in North America due to
slower product returns and a later receipt of license revenues,
Bayer said. Herbicides recorded higher sales on the back of higher
prices for glyphosate-based products and higher volumes, especially
in North America and the Middle East and Africa, according to
Bayer.
In Bayer's pharmaceuticals business, sales of prescription
medicines rose more than 7% to EUR4.54 billion as the ophthalmology
business grew market share in the recovery after Covid-19
restrictions, the company said.
Bayer's consumer-health sales grew almost 11% to EUR1.35 billion
as continued high demand for nutritional products benefited the
business.
The company adjusted its outlook for 2021. It said that it
continues to expect sales to be about EUR44 billion, though that
now corresponds to currency- and portfolio-adjusted growth of about
7%, compared with 6% previously.
Core earnings per share for the year are now expected to be in
the range of EUR6.50 to EUR6.70 after currency effects, compared
with a previous range of EUR6.40 to EUR6.60, it said.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
November 09, 2021 03:13 ET (08:13 GMT)
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