Pharmaceutical company: Bayer exceeds analyst expectations in the second quarter
Bayer benefits from a strong agricultural business and confirms the forecast for the full year. The stock gains in pre-market trading.
Düsseldorf-based pharmaceutical and agricultural conglomerate Bayer reported stronger-than-expected growth in the second quarter, exceeding analyst expectations. The adjusted operating profit, or Ebitda, rose by 1.9 percent to €2.14 billion, significantly surpassing the average estimate of €1.94 billion. Bayer's success was primarily attributed to robust performance in the seed and plant protection sectors.
The company's agricultural division saw a 30 percent increase in adjusted profit to €902 million, driven by robust revenue growth and lower production costs due to efficiency programs. This offset the losses from patent expirations for key medicines. In the pharmaceuticals segment, profits declined by 3.6 percent to €1.055 billion, partly due to higher investments in marketing for growth products.
Overall sales increased by nearly 1 percent to €10.87 billion, marking a 2.2 percent rise when currencies and portfolios were adjusted. For the year, the management affirmed its earlier forecast, with all three divisions on track, according to CEO Bill Anderson.
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