Bayer 1Q Net Profit Rose, Backs 2021 Outlook -- Update
(Adds divisional detail.)
By Cecilia Butini
Bayer AG on Wednesday reported a rise in net profit despite
slightly lower sales and backed its outlook for the year.
The German pharmaceutical and chemical conglomerate posted net
profit of 2.09 billion euros ($2.54 billion), up from EUR1.49
billion in the same quarter of 2020.
Earnings before interest, taxes, depreciation and amortization
before special items were EUR4.12 billion, slightly down from
EUR4.39 billion the year prior. Sales stood at EUR12.33 billion in
the period, versus EUR12.85 billion the previous year, the company
Free cash flow plunged to negative EUR3.23 billion from negative
EUR793 million the year prior, due to settlement payments for
litigations in the U.S., Bayer said.
Regarding litigation involving its glyphosate-based Roundup
pesticide, Bayer said that about 96,000 claims are covered by
settlement agreements, and that it continues to negotiate with
plaintiff counsels to reach agreement on remaining cases.
The company's agricultural business, known as Crop Science, saw
a slight decline in sales for the quarter, to EUR6.65 billion from
EUR6.83 billion the year prior, but said that sales of herbicides
gained volume in all regions on higher prices for Roundup.
Sales of pharmaceuticals remained at the prior-year level, Bayer
said, while consumer health products suffered a hit from lower
sales of cough and cold products prompted by continuing hygiene
measures and lockdowns.
The company backed its outlook for 2021. It had previously said
it expected sales between around EUR42 billion and EUR43 billion
for the year, with an Ebitda before special items of EUR11.2
billion to EUR11.5 billion, both on a currency-adjusted basis.
Write to Cecilia Butini at email@example.com
(END) Dow Jones Newswires
May 12, 2021 02:38 ET (06:38 GMT)
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