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)

Copyright (c) 2021 Dow Jones & Company, Inc.
Bayer Aktiengesellschaft (PK) (USOTC:BAYRY)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Bayer Aktiengesellschaft (PK) Charts.
Bayer Aktiengesellschaft (PK) (USOTC:BAYRY)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Bayer Aktiengesellschaft (PK) Charts.