Bayer lowers full-year outlook

25-Jul-2023 - Germany

Bayer AG

The Bayer Group adjusted its full-year outlook for 2023 downward on Monday, mainly due to a significant further decline in sales of glyphosate-based products.

For full-year 2023, Bayer now anticipates sales of between 48.5 billion and 49.5 billion euros on a currency-adjusted basis, i.e. based on the average monthly exchange rates in 2022 (previous outlook: 51 billion to 52 billion euros). EBITDA before special items is now expected to be in the range of 11.3 billion and 11.8 billion euros in 2023 on a currency-adjusted basis (previous outlook: 12.5 billion to 13.0 billion euros). The company also adjusted its forecast for core earnings per share to between 6.20 and 6.40 euros on a currency-adjusted basis (previous outlook: 7.20 to 7.40 euros) and for free cash flow to approximately zero euros (previous outlook: approximately 3.0 billion euros).

For the second quarter, audited figures are not yet available. Sales are expected to come in at approximately 11.0 billion euros. EBITDA before special items is expected to amount to approximately 2.5 billion euros. Bayer anticipates core earnings per share of approximately 1.20 euros and free cash flow of approximately minus 0.5 billion euros (all quarterly figures based on exchange rates as of June 30, 2023).

When communicating its first quarter results, Bayer already guided towards the lower end of its Group sales and earnings forecast for this year. Further price declines and lower volumes due to channel de-stocking, especially for glyphosate-based products, as well as adverse weather conditions have increased pressure. Based on the anticipated market development, in particular with respect to the glyphosate business, Bayer also expects to record a goodwill impairment of approximately 2.5 billion euros. This will result in negative Group net income of approximately 2 billion euros for the second quarter of 2023.

https://www.chemeurope.com/en/news/1181159/bayer-lowers-full-year-outlook.html