By Ludwig Burger and Patricia Weiss
FRANKFURT, April 23 (Reuters) – Bayer BAYGn.DE stated prospects for its agriculture enterprise, the world’s largest provider of seeds and pesticides, have brightened in the course of the first quarter as demand from farmers was bettering amid larger produce costs.
“Within the agriculture enterprise, specifically, we see a market atmosphere that offers us an more and more optimistic perspective,” Chief Govt Werner Baumann stated within the textual content of a speech posted on the group’s web site and which will likely be delivered at subsequent week’s annual shareholder assembly.
He stated first-quarter outcomes could be printed on Could 12 and the begin to the 12 months was profitable.
“A large enhance within the demand for agricultural merchandise has led to rising costs. After all, we hope that this momentum will proceed.”
The agriculture enterprise, which Bayer boosted with the $63 billion takeover of Monsanto, has been a drag on the diversified group with Bayer saying in February that earnings per share would slip in 2021, disappointing buyers.
The CEO on Friday reiterated that 2021 gross sales would doubtless develop about 3% with earnings per share coming in barely under the year-earlier degree, when excluding forex swings.
Bayer final month pledged to revive development in adjusted earnings by 2024, helped by the launch of merchandise reminiscent of digital farming companies, new soy seeds and non-prescription treatments.
Bayer’s inventory has recouped losses it suffered in October final 12 months, when it flagged billions of euros in writedowns on agricultural property.
However litigation continues to be a drag on the shares. An $11 billion define settlement in June final 12 months of U.S. lawsuits that allege Bayer’s Roundup weed killer causes most cancers has turned out to be costlier amid a battle to finalise the deal.
The CEO reiterated within the speech {that a} new proposal agreed with plaintiffs’ attorneys has but to be permitted by the choose within the case.
(Reporting by Ludwig Burger and Patricia Weiss Enhancing by Riham Alkousaa and Jane Merriman)
(([email protected]; +49 30 220133634; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.