Status: 05/10/2022 10:00 a.m
Thanks to high demand in the agricultural business, Bayer started the year with a profit in the billions. The Ukraine war hardly left any traces.
So far, the integration of Monsanto Bayer had mainly caused concern. In the first quarter, however, the strengthening of the crop protection business had a very positive effect on the balance sheet of the Leverkusen group.
Thanks to high demand for crop protection products and price increases, Bayer increased sales by 18.7 percent to EUR 14.6 billion. Adjusted operating profit (Ebitda) rose in the first quarter by 27.5 percent to 5.25 billion euros. The bottom line is that profits rose by more than 57 percent to 3.3 billion euros.
“Positive environment in the agricultural business”
It is becoming apparent “that we have had a very successful start to the year despite all the uncertainties in the world,” said CEO Werner Baumann. “Especially in the agricultural business, we see a much more positive market environment than in previous years.” The agricultural business was particularly boosted by demand for weed control agents and active ingredients against fungi.
However, the DAX group also posted significant growth in over-the-counter health products, especially in allergy and cold remedies, after a weaker quarter in the previous year due to the pandemic. In the prescription drugs business, on the other hand, earnings fell due to increased spending on the marketing and sale of new products and higher research costs.
The war in Ukraine, on the other hand, had no negative effects. Russia and the Ukraine account for only around three percent of group sales. Bayer has shut down all non-essential business in Russia and Belarus and halted investments. However, the company continues to deliver its products such as medicines and seeds there.
outlook confirmed
Baumann confirmed the forecast for the year as a whole: “Despite the high level of uncertainty, we are confident about the rest of the year, including with regard to the stability of the supply chains and the energy supply.” He still expects a currency-adjusted increase in sales of around five percent to around 46 billion euros and adjusted earnings of around twelve billion euros. Last year, Bayer had a turnover of 44 billion euros and brought in a result of 11.18 billion.