Bayer Starts Year With Strong 1Q Performance, Say Analysts -- Earnings Review
April 27 2020 - 7:17AM
Dow Jones News
By Kim Richters
German pharmaceutical and chemical giant Bayer reported results
for its first quarter on Monday. Here's what you need to know:
SALES: Bayer said 1Q sales rose to 12.85 billion euros ($13.90
billion) from EUR12.25 billion, beating analysts' expectations of
EUR12.61 billion, according to a consensus provided by Vara
Research.
EBITDA BEFORE SPECIAL ITEMS: Ebitda before special items rose
10.2% to EUR4.39 billion from EUR3.98 billion in the same quarter
the previous year. Analysts had expected EUR4.10 billion for the
quarter, according to Vara Research.
NET INCOME: Net profit jumped 20% to EUR1.49 billion from
EUR1.24 billion a year earlier.
"1Q 2020 was generally very strong for Bayer in all divisions,"
said Bryan Garnier.
WHAT WE WATCHED:
-PHARMA DIVISION: Bayer's pharmaceuticals business benefited
from coronavirus-related stock piling for some products like
Xarelto, while others like Eylea were negatively affected by the
pandemic, says Bryan Garnier. "In all, Pharmaceuticals were more or
less in line with expectations and do not warrant specific
comments. We continue to believe that the lack of a strong pipeline
will be an issue for Bayer," says the investment bank.
-GUIDANCE: The company maintained its targets for 2020, which
don't include coronavirus effects, and said it wasn't possible to
reliably assess "the positive and negative effects until later in
the year."
"In our view, the strong start to the year is positive and
reflects that Bayer is on track to deliver on its underlying
targets," says Warburg Research.
-CROP SCIENCE/GLYPHOSATE: Bayer's crop-science segment had a
strong quarter, benefiting from the coronavirus pandemic and from
increased demand compared with a year earlier, says Bryan
Garnier.
As for the Roundup litigation, the company reported a rise in
plaintiffs to around 52,500 as of April 14 and said the related
mediation process "significantly slowed" due to the coronavirus
pandemic.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
April 27, 2020 07:02 ET (11:02 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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