Bayer Reports Widened Loss in Q2 Due to Lower Glyphosate Prices
Bayer, the German pharmaceutical and agricultural company, announced on Tuesday that it has incurred impairments and charges related to its agricultural business. The company cited lower glyphosate prices as the primary factor contributing to its widened loss in the second quarter.
During this period, Bayer reported impairment losses totaling 2.30 billion euros ($2.53 billion), resulting in a net loss of EUR1.88 billion. In comparison, the net loss in the same quarter of the previous year amounted to EUR298 million.
The company’s sales for the second quarter amounted to EUR11.04 billion, as previously forecasted on July 24. Earnings before interest, taxes, depreciation, and amortization (EBITDA) before special items, which serves as a key metric for Bayer, declined from EUR3.35 billion last year to EUR2.53 billion this year, in alignment with the company’s expectations.
Bayer has confirmed the revised guidance it issued on July 24, which is a result of the significant decline in sales of glyphosate-based products. The updated guidance projects sales for the full year to be between EUR48.5 billion and EUR49.5 billion, representing a 2% to 3% decline.
While the Crop Science agricultural division is expected to experience a 5% decline in sales, the pharmaceutical business is predicted to remain relatively flat compared to the previous year, according to Bayer.