Bayer beats Q3 revenue forecast on sturdy herbicide gross sales By Reuters

By Ludwig Burger

FRANKFURT (Reuters) -Agriculture and prescription drugs firm Bayer (OTC:) on Tuesday reported better-than-expected quarterly earnings as larger costs for glyphosate-based weedkillers made up for a decline in gross sales of its stroke prevention tablet Xarelto.

The German firm mentioned in a press release third-quarter adjusted earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) rose 17.3% to 2.45 billion euros ($2.45 billion), above analysts’ common estimate of two.31 billion euros posted on the corporate’s web site.

Finance chief Wolfgang Nickl mentioned year-on-year gross sales development was primarily pushed by larger costs for glyphosate however costs had already begun to drop in the course of the third quarter.

“We anticipate them to normalize additional within the fourth quarter,” he mentioned.

Bayer mentioned its full-year outlook issued in August nonetheless stood, however it added that value inflation would proceed subsequent 12 months. The shares fell 2.3%, erasing good points over the earlier two buying and selling periods as analysts voiced issues over the fee outlook.

Bayer has been hit by litigation prices over most cancers claims by principally particular person customers of glyphosate-based weedkiller. However demand for the product class from farmers, the crop science unit’s most important buyer group, has not been dented by the authorized disputes.

It mentioned in August it was focusing on adjusted EBITDA of about 13 billion euros, primarily based on June 30 overseas trade charges, up from 11.2 billion in 2021.

The crop science division noticed adjusted EBITDA acquire 33.5% to 629 million euros, beating a market consensus of 589 million euros, as a robust glyphosate enterprise greater than offset weaker corn and soy seed gross sales.

Its best-selling drug Xarelto noticed gross sales decline 6.2% to 1.11 billion euros within the quarter, barely beneath market estimates, on decrease costs and volumes in China in addition to lack of patent safety in Brazil.

Revenues from anti-blindness therapy Eylea rose 6.3% to 811 million euros, gaining prescriptions in Europe and China, but additionally got here in barely beneath expectations.