Bayer: reduces its profit by 90.3% in the first semester

The German phytosanitary giant Bayer continues in free fall, losing 1,887 million between April and June, multiplying by six the red numbers of 2022. A situation that has weighed down since 2018 when it obtained an attributed net profit of 5,639 million euros in the nine first months of the year, which represented a decrease of 29%. Now, he repeats it again, but in this case, the figures show that the German pharmaceutical group obtained a net profit of 291 million euros in the first half of this year, which represents a decrease of 90.3% compared to the earnings of 2,993 million registered in the same period of the previous year.

This bleeding continued in 2019, when the expenses derived from the restructuring and various legal cases reduced Bayer’s net profit between January and September to 2,677 million euros, 52.4% less than the same period of the previous year. In 2020, it again posted losses of 8,059 million euros in the first half of 2020, in contrast to the net profit of 1,645 million euros in the first half of 2019.

Bayer’s sales in the first half of the year reached 25,433 million euros, 7.4% less than in the same period of 2022, highlighting the 11% decrease in the turnover of the agricultural business (CropScience), up to 13,275 million , along with the pharmaceutical area, which decreased its sales by 5.1%, to 8,964 million. The non-prescription medicines business, for its part, billed 1% more, up to 3,039 million.

Between January and June, the Leverkusen giant assumed an extraordinary negative impact of 2,921 million euros, compared to 2,071 million euros in the first half of 2022.

In this way, the adjusted gross operating result (Ebitda) until June of the German company reached 6,998 million euros, which represents a decrease of 18.6% compared to what was recorded in the same period of the previous year, when it stood at 8,600 million.

In the second quarter of the year, Bayer registered losses of 1,887 million euros, which means multiplying by six the ‘red numbers’ of 298 million recorded between April and June 2022, while its sales decreased by 13.8%, to 11,044 million.

forecasts

Bayer lowered its outlook for this year on July 24, mainly due to a new significant decline in sales of glyphosate-based products.

On an adjusted monetary basis, that is, based on the average monthly exchange rates of 2022), the company now expects to generate sales of between 48,500 and 49,500 million euros, compared to an initial forecast of between 51,000 and 52,000 million euro.

In addition, the German group has highlighted that it expects Ebitda before special items to be between 11,300 and 11,800 million euros in adjusted terms, taking into account that the initial forecast placed it between 12,500 and 13,000 million.

Regarding the divisions, the company has estimated that it expects CropScience sales to fall by around 5% year-on-year and those of the pharmaceutical area to register a variation of approximately 0% compared to the level of the previous year, taking into account that the forecast estimated an increase of around 1%, after adjusting for currency and portfolio effects.

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