BAYZF - Bayer cuts guidance on further decline in glyphosate-based product sales

2023-07-24 15:39:00 ET

Bayer ( OTCPK:BAYRY ) ( OTCPK:BAYZF ) -4.5% in Monday's trading after lowering its full-year outlook , mostly due to a significant further decline in sales of glyphosate-based products, including its Roundup weedkiller.

For FY 2023, Bayer ( OTCPK:BAYRY ) ( OTCPK:BAYZF ) said it now sees sales of €48.5B-€49.5B ($53.96B-$55.07B) on a currency-adjusted basis from previous guidance of €51B-€52B, EBITDA before special items of €11.3B-€11.8B from its prior outlook of €12.5B-€13B.

The company also cut its forecast for core earnings to €6.20-€6.40/share from €7.20-€7.40/share previously, and for free cash flow to roughly zero from previous guidance of ~€3B.

Bayer ( OTCPK:BAYRY ) ( OTCPK:BAYZF ) also issued preliminary Q2 results that missed estimates, with EPS of €1.20 on revenues of €11B, compared to analyst consensus expectations for €1.43 EPS on €12.2B in sales.

Bayer ( OTCPK:BAYRY ) ( OTCPK:BAYZF ) already had guided towards the lower end of its sales and earnings forecast for the year, but it said further price declines and lower volumes due to channel destocking, especially for glyphosate-based products, as well as adverse weather conditions have increased pressure.

Based on these developments, the company said it expects to incur a ~€2.5B goodwill impairment, resulting in a loss of ~€2B in Q2.

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