The net profit of the German chemical giant Bayer jumped in the first quarter by 58% to 3.3 billion euros (3.5 billion francs), thanks to price increases and exchange rate effects and a drop in the cost legal related to glyphosate.
The operating profit (Ebitda) of the agrochemicals division jumped 50% to 3.7 billion euros “mainly driven by higher prices” and “greater volumes”, according to a press release.
Positive foreign exchange effects of 98 million euros also helped, while the evolution of currency values weighed on the first quarter of 2021 by 252 million euros.
Herbicides and fungicides have seen their sales increase in the same way as seeds, helped by ‘price increases in all regions’.
The turnover of this flagship branch is up 22% to 8.5 billion euros out of a total of 14.6 billion at group level.
“We have achieved a remarkable increase in sales and profits, in particular with significant gains in agriculture,” noted boss Werner Baumann.
No impact of the war in Ukraine
Net profit also benefited from a drop in provisions set aside to cover glyphosate-related lawsuits from the Monsanto subsidiary, acquired in 2018, resulting in a 40 million euro positive effect.
‘The group’s sales and profits have not been negatively affected by the Russian invasion of Ukraine’, explains the company for which the two countries represent ‘around 3% of turnover’.
The prescription drugs branch saw its operating profit (EBITDA) fall by 7% year on year, to 1.4 billion euros, due to a ‘rise in investments’ while sales increased by 3 % to 4.6 billion euros.
The over-the-counter health products division (medicines, dietary supplements) shows “exceptional growth” in turnover: +17% to 1.5 billion euros compared to a “weak quarter the previous year”. attributed to the pandemic.
/ATS