By Cecilia Butini
Bayer AG on Thursday lifted its guidance for the full year after a sales beat in the second quarter and a boost from positive currency effects, though it posted a net loss for the quarter and said it took on some impairments and litigation-related charges.
The German pharmaceutical-and-agricultural company posted a net loss of 298 million euros ($303 million) for the second quarter, narrowed from a loss of EUR2.34 billion the year prior, when profits were affected by the setting aside of provisions to continue litigation on its Roundup weedkiller.
Earnings before interest and taxes swung to EUR169 million from a loss before interest and taxes of EUR2.28 billion the year prior. Bayer said the metric was hit by net special charges of EUR2.11 billion including impairment losses related to its agricultural division. Other special charges were related to continuing litigation and restructuring measures. The company also said that it took an additional provision of EUR694 million in the second quarter due to ongoing settlement negotiation with the U.S. state of Oregon on an environmental case.
Earnings before interest, taxes depreciation and amortization before special items--a closely-watched metric--rose to EUR3.35 billion from EUR2.58 billion the year prior, aided by positive currency effects, Bayer said.
Sales for the quarter beat consensus expectations, rising to EUR12.82 billion from EUR10.85 billion the year prior, mainly driven by gains in its Crop Science and Consumer Health division, and aided by positive currency effects, Bayer said.
The company lifted its 2022 guidance, saying it now expects to generate sales of between EUR47 billion and EUR48 billion, having previously guided for approximately EUR46 billion. Earnings before interest, taxes, depreciation and amortization before special items of EUR12.5 billion, having previously guided for around EUR12 billion.
Bayer's agricultural division benefited by an improvement in market environment, with double-digit percentage growth in Latin America and Europe, Middle-East and Africa, Bayer said, adding that herbicides posted the strongest growth. Sales in the company's consumer health division rose by 6.8% in the quarter across all regions and nearly all categories, Bayer said.
Write to Cecilia Butini at firstname.lastname@example.org
(END) Dow Jones Newswires
August 04, 2022 03:09 ET (07:09 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.