Bayer lowers forecast due to write-downs on glyphosate business

Bayer factory

The price of glyphosate and similar products has fallen.

(Photo: dpa)

Frankfurt Because of the meager demand for crop protection products containing glyphosate, Bayer is lowering its annual outlook. Adjusted sales of 48.5 to 49.5 billion euros are now expected for 2023 instead of the previous 51 to 52 billion euros, the Leverkusen-based group announced on Monday evening after the stock market closed.

In terms of operating profit (adjusted Ebitda), Bayer is now assuming 11.3 to 11.8 billion euros instead of 12.5 to 13.0 billion. The free cash flow will be around zero euros (previous outlook: around 3.0 billion euros).

Bayer explained that the reason for this was the further fall in prices and the lower demand for glyphosate-based products. Therefore, the group will probably have to write off 2.5 billion euros on the glyphosate business. “This will lead to a negative consolidated result of around 2.0 billion euros in the second quarter of 2023.”

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