Bayer 1Q Net Profit Rose, Backs 2021 Outlook -- Update

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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 said.

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 [e-mail]

(END) Dow Jones Newswires

May 12, 2021 02:38 ET (06:38 GMT)

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