Bayer profit drop in the third quarter - earnings forecast lowered

The pharmaceutical and chemical company Bayer has announced a profit drop in the third quarter of 2023. The Leverkusen-based group reported a decline in earnings to 1.06 billion euros.

Compared to the same period last year, this represents a decrease of 39.4 percent. Sales increased by 1.5 percent to 11.2 billion euros. Bayer cited higher costs for raw materials and the strong euro compared to the US dollar and other currencies as reasons for the decline in earnings. The company also lowered its earnings forecast for the full year 2023 due to the “challenging environment”.

Werner Baumann, CEO of Bayer AG, said in a statement: "The third quarter of 2023 was challenging for Bayer. The war in Ukraine, the ongoing COVID-19 pandemic, and macroeconomic headwinds, including high inflation and currency effects, have had a significant impact on our business."

Bayer now expects to achieve a slightly positive adjusted EBITDA in 2023, compared to the previously expected growth in the low single-digit percentage range. In addition, the company cut its earnings per share forecast from 7.00 to 7.50 euros to 6.50 to 7.00 euros.

Despite the profit drop, Bayer's stock rose on the Frankfurt Stock Exchange on Tuesday morning. Analysts had expected a slightly larger drop in earnings.