Bayer Posts Net Loss, Dragged by Weaker Crop-Science Performance

By Helena Smolak

Bayer posted a second-quarter net loss that significantly missed consensus expectations after a tough agricultural market hit earnings at its crop-science division.

The German pharmaceutical and agricultural company said Tuesday that it posted a net loss of 34 million euros ($37.2 million) in the quarter compared with a loss of EUR1.89 billion in the same quarter of the previous year, when it booked impairments and charges related to its agricultural business. The company said an unfavorable product mix contributed to the result, which fell significantly short of the EUR70 million net profit expected by analysts.

Earnings before interest, taxes, depreciation and amortization before special items--a key company metric--fell to EUR2.11 billion from EUR2.53 billion, beating analysts' expectations of EUR2.08 billion. Its core earnings per share, another key metric, dropped to EUR0.94 from EUR1.22, beating analysts' expectations of EUR0.84.

Sales rose to EUR11.14 billion from EUR11.04 billion, beating expectations of EUR10.82 billion, according to consensus estimates provided by Vara Research.

Crop science sales adjusted for currency effects rose 1.1% to EUR4.98 billion, driven by glyphosate-based herbicides, particularly in North America. Pharmaceutical sales increased 4.5%, boosted by sales of new cancer drug Nubeqa and kidney-disease treatment Kerendia, offsetting lower revenue from its best-seller blood-thinning drug Xarelto due to generic competition.

Bayer reiterated its full-year overall group guidance for the year. However, for its crop-science division, it now expects currency- and portfolio-adjusted sales growth to come in at the lower end of its previously expected range of minus 1% to positive 3%. It also expects its Ebitda margin before special items to come in at the lower end of its previously guided 20%-22% range.

For the pharmaceuticals division, Bayer raised its sales-growth forecast to between 0% and 3% from previous guidance of minus 4% to 0%.

Write to Helena Smolak at helena.smolak@wsj.com

Corrections & Amplifications

This story was corrected at 9846 GMT. The originally version said Bayer narrowed its sales growth. The company raised its sales growth.

(END) Dow Jones Newswires

August 06, 2024 02:29 ET (06:29 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.