Bayer Group Cuts FY23 Outlook

(RTTNews) - Bayer Group cut its fiscal year 2023 outlook, mainly due to a significant further decline in sales of glyphosate-based products.

For full-year 2023, Bayer now anticipates sales to be between 48.5 billion euros and 49.5 billion euros on a currency-adjusted basis, i.e. based on the average monthly exchange rates in 2022. Previously, it expected sales of 51 billion euros to 52 billion euros.

EBITDA before special items is now expected to be in the range of 11.3 billion euros and 11.8 billion euros in 2023 on a currency-adjusted basis compared to the previous outlook of 12.5 billion euros to 13.0 billion euros.

The company cut its annual forecast for core earnings per share to between 6.20 euros and 6.40 euros on a currency-adjusted basis from the previous outlook of 7.20 euros to 7.40 euros.

For the second quarter, Sales are expected to come in at about 11.0 billion euros. EBITDA before special items is expected to amount to about 2.5 billion euros. Bayer anticipates core earnings per share of about 1.20 euros.

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 about 2.5 billion euros. This will result in negative Group net income of about 2 billion euros for the second quarter of 2023.

Bayer said it will release its detailed results for the second quarter on August 8,2023.

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