Bayer AG reported a 2.1% decline in sales to €24.91 billion (2.3 trillion rubles) in the first half of 2024, while earnings before interest and taxes (EBIT) increased compared to the first half of 2023 by 80% to €3.62 billion (335 billion rubles), Agrarheute reported on August 6.
The main reason for the profit increase was a significant reduction in litigation costs in the United States over the herbicide glyphosate. In addition, Bayer has cut almost 5,500 jobs from 2023, which has also boosted its profits.
In the second quarter, the agricultural business recorded sales growth of 1.1% to 4.98 billion euros (465 billion rubles). The driving force behind the growth was drugs containing glyphosate. Sales of other herbicides fell.
The second quarter saw significant growth in sales of genetically modified (GM) soybeans and insecticides. Fungicide production declined due to lower volumes and prices in North America and Latin America.
Sales of GM corn seeds have declined, mainly in Latin America and North America. Despite this, Bayer’s agricultural division increased EBIT to 1.83 billion euros (170 billion rubles) in the first half of 2024 from 112 million euros (10.5 billion rubles) in the same period last year.
Bayer CEO Anderson referred to the Australian court decision on glyphosate and Roundup and highlighted positive developments. The dismissal of a class action lawsuit in Australia, according to the Bayer CEO, shows that “If it really comes down to science in court, we will win”.
Anderson noted progress in the United States. A Philadelphia court ruled in favor of Bayer. The lawsuit was dismissed.
In the second quarter of 2024, sales of prescription drugs increased by 4.5% and sales of over-the-counter medical products increased by 5.3% compared to the level of the second quarter of 2023.
Anderson is convinced that the pharmaceutical business is one of the most important for the group. The launch of two new drugs is planned for next year. The group confirmed its sales and profit forecast for 2024.
Source: Rossa Primavera
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