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Bayer reports higher sales, lower profits as Monsanto buyout bites

Bayer reports higher sales, lower profits as Monsanto buyout bites

German chemicals and pharmaceuticals giant Bayer reported higher revenues but lower profits for the second quarter Wednesday, in its first financial statement since its mammoth takeover of US-based Monsanto.

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05.09.2018 04:59 PM

German chemicals and pharmaceuticals giant Bayer reported higher revenues but lower profits for the second quarter Wednesday, in its first financial statement since its mammoth takeover of US-based Monsanto.

Between April and June -- including the weeks between finalising the Monsanto purchase on 7 June and the end of that month -- the group booked net profits of 799 million euros ($926 million).

That figure was 34.7 percent lower than a year before.

But revenues increased, from 8.7 billion to 9.5 billion euros.

Bayer also released unaudited data to show how its crop science unit would have fared in its new shape -- including Monsanto but ruling out businesses sold to BASF to appease competition authorities ahead of the merger.

Rather than the 3.1 billion euros in sales crop science officially reported between April and June, the division would have booked 5.1 billion -- up 1.6 percent year-on-year.

Elsewhere in the business, sales and operating profits fell at the pharmaceuticals division and the over-the-counter medicines unit, but grew in the animal health segment.

Looking ahead to the full year, Bayer aims to achieve sales of 39 billion euros -- up from its previous forecast of below 35 billion thanks to the Monsanto acquisition.

Meanwhile, operating profits before special items should increase by up to 10 percent, while earnings per share are expected to fall around the same amount.
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