Bayer 1Q Earnings Beat Expectations -- Earnings Review
By Cecilia Butini
Bayer AG reported first-quarter earnings on Wednesday. Here is
what you need to know.
SALES: Bayer reported sales of 12.33 billion euros ($14.98
billion), beating a company-provided consensus of EUR11.88 billion
but declining slightly from EUR12.85 billion the company posted in
the same period the year prior.
NET PROFIT: Net profit climbed to EUR2.09 billion from EUR1.49
billion the previous year, also beating a company-provided
consensus, which saw the metric at EUR1.62 billion.
EBITDA BEFORE SPECIAL ITEMS: The metric also beat consensus
expectations, coming in at EUR4.12 billion versus the expected
EUR3.82 billion. It dropped slightly from EUR4.39 billion the
previous year, however.
WHAT WE WATCHED:
-CROP SCIENCE: The division was the major driver of the sales
beat, and it could have upside potential especially if a judge in
the U.S. next week rules favorably on the proposed settlement of
claims that herbicide Roundup causes cancer, Citi analysts say. The
approaching resolution to the litigation, together with an
improving outlook at the crop-science division could drive
sentiment improvement, according to the analysts. The first quarter
is usually the strongest for crop science in terms of both earnings
and sales, Bryan Garnier analysts say.
-PHARMACEUTICALS: Sales remained mostly flat on-year at the
division, which develops prescription medication, as sales of
blood-thinner drug Xarelto came in below expectations, Bryan
Garnier says. Sales were particularly dragged down in Germany,
Bayer said. The drug is going to remain in focus in the coming
years as it and eye treatment Eylea are going to lose their
exclusivity rights, and that is an issue for the future of the
division, according to Bryan Garnier.
Write to Cecilia Butini at email@example.com
(END) Dow Jones Newswires
May 12, 2021 09:55 ET (13:55 GMT)
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