Even years after the acquisition of the American manufacturer Monsanto, legal disputes continue to burden Bayer. However, the strong agricultural business and the rapid demand for over-the-counter cold remedies are encouraging for the chemical company.
Further reserves for US litigation and a write-off for agriculture put Bayer at a loss in the second quarter. The result was a downside of almost EUR 300 million, the Dax group announced on Thursday. A year ago, the minus of a good 2.3 billion euros was significantly higher due to provisions for the US glyphosate lawsuit, but analysts were expecting a net profit this year.
On the other hand, in day-to-day operations, things went even better than experts thought, thanks to good farming activities and a strong demand for over-the-counter medicines. The group has raised its annual outlook for 2022. The stocks did not change much ahead of the market on Thursday morning.
In the second quarter, consolidated sales rose by a good 18 percent year-on-year to EUR 12.8 billion. Under our own pair, the increase was almost ten percent. This excludes positive exchange rate effects, for example from a weak euro and the purchase and sale of a part of the company. Adjusted operating profit (EBITDA) rose by 30 percent to 3.35 billion euros.
Red for one-time effects
The fact that the financial result was still negative was due to one-off effects. Bayer has set aside an additional € 694 million, mainly due to the ongoing settlement negotiations with the US state of Oregon due to alleged environmental pollution caused by the environmental toxin PCB, which was banned for decades by the US manufacturer Monsanto, which was acquired in 2018. The case will end in a settlement, He said. In addition, a write-down in the agriculture department of almost € 1.4 billion was made, in particular by Bayer due to a loss of value due to increased capital costs.
In 2022, Bayer was more optimistic than before Thursday. Adjusted for currency effects, the group currently expects sales of between EUR 47 billion and EUR 48 billion in 2022, after around EUR 46 billion previously. This is an increase of around 8 percent, up from the previous 5 percent. The adjusted operating result (EBITDA) is expected to remain at constant exchange rates around EUR 12.5 billion (previously around EUR 12.0) billion.
Contrary to 2021, when the weak Brazilian real was the main burden, the weak euro now provides for a tailwind. Based on exchange rates as of June 30, the sales target is therefore between 50 and 51 billion euros and the operating profit is around 13 billion euros. This is slightly more than analysts expected in terms of sales, but slightly less in terms of operating profit. (dpa)