Bayer to Slash Its Dividend for 2023 to Reduce Debt — Update

By Andrea Figueras

Bayer plans to slash its dividend and change its dividend policy in order to reduce debt, the company said Monday.

After a review of its capital allocation priorities, the German pharmaceutical and agricultural company said it will pay a 2023 dividend of 0.11 euros (12 U.S. cents) a share, compared with EUR2.40 for 2022.

"This proposal comes as the company faces a high level of debt, coupled with high interest rates and a challenging free cash flow situation," the company said.

Bayer plans to pay the minimum allowed dividend for the coming three years, which is 4% of the company's share capital, a spokesperson said.

The dividend policy in previous years represented between 30% and 40% of the group's earnings per share, Bayer said.

The measure will be presented for shareholder vote at the annual meeting on April 26.

Bayer said it is implementing a new operating model that will include job cuts, aimed at making the company more agile and significantly improve its operational performance, as previously announced, it said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

February 19, 2024 12:17 ET (17:17 GMT)

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