German agrochemical and pharmaceutical giant Bayer remained in the red in the third quarter with a net loss of 4.18 billion euros, weighed down by significant writedowns within its agrochemical division, it said. he said Tuesday.
The Leverkusen group suffered from a net depreciation of 4.09 billion euros (3.8 billion francs) in agrochemicals, “mainly linked to losses in value on intangible assets” of this division, according to a press release.
Between June and September, the group’s sales increased slightly by 0.6%, to 9.97 billion euros but suffered from “difficulties in the agricultural market”.
Turnover fell by 3.6% in agrochemicals, to 3.99 billion, particularly due to declines in sales of products based on glyphosate (-19.1%), accused of causing cancer and source numerous lawsuits against Bayer.
On the other hand, the prescription medicines division increased by 2.3% to 4.51 billion euros, still driven by its flagship drugs Nubeqa and Kerendia.
Sales of personal care products increased by 5.7% to 1.41 billion euros, notably thanks to the dynamism of cardiology and dermatology.
Bayer had recorded a net loss of 34 million euros in the second quarter of 2024 after remaining in the green for two quarters.
For 2024, the German giant confirmed its sales forecasts but revised downwards several objectives “taking into account the weaker than expected development of the agricultural market”.
Price pressure
The group now expects to generate earnings before interest and taxes, depreciation and amortization and special items (Ebitda) of between 10.4 and 10.7 billion euros, instead of previous estimates between 10.7 and 11. 3 billion euros.
In detail, the operating margin of the agrochemicals division was reduced to an interval of 18 to 20%, compared to 20 to 22% previously.
In 2025, “additional regulatory challenges and pressures on the prices of our generic products are expected to weigh on our crop protection activities,” warns the group in the press release.
In 2023, the chemist initiated a vast restructuring aimed in particular at reducing management positions to achieve 2 billion annual savings from 2026.
To this end, it cut 3,200 positions in the first half of 2024 and is expected to cut about as many by the end of the year.
By 2026, the company also wants to “significantly curb the threat of lawsuits linked to glyphosate”, assured Matthias Berninger, director of public affairs at Bayer, to the Rheinischen Post newspaper in September.
The group remains entangled in thousands of legal proceedings in the United States because of Roundup, Monsanto’s flagship herbicide bought by the German in 2018.
This article was automatically published. Sources: ats / awp / afp
