The group is burdened by high debts and expensive processes relating to the weed killer glyphosate – in 2023 there was a loss worth billions. However, boss Bill Anderson is not aiming for a split for the time being.
The pharmaceutical and agricultural chemicals group Bayer is trying to master its difficult situation without selling off its divisions despite high debts. The answer to the question about the future structure and a possible split is “not now,” the DAX company announced on Tuesday as part of the presentation of annual figures and a capital market day. Nevertheless, “we will remain open to everything,” said Bayer boss Bill Anderson, according to the statement. Given the very limited scope for action, business development should first be improved and more strategic flexibility created. As part of the new organizational model that has already been presented, two billion euros in organizational costs are to be saved annually from 2026.
Bayer had already announced in January that there would likely be a significant reduction in personnel in Germany as part of the planned streamlining of administration and the desired acceleration of decision-making processes.
The bottom line is that Bayer incurred a loss of 2.9 billion euros in 2023 due to high value adjustments in the agricultural division – after a profit of 4.2 billion in the previous year. This year the group expects a further decline in operating profit. The operating result (Ebitda) adjusted for exchange rate and special effects is expected to reach 10.7 billion to 11.3 billion euros, Bayer also announced. In 2023, the operating result fell by 13.4 percent to 11.7 billion euros. Adjusted for the effects of exchange rate changes, Bayer is also targeting sales of 47 billion to 49 billion euros in 2024, after 47.6 billion euros last year.
As Bayer further announced on Tuesday with a view to the legal disputes in the USA, “new approaches inside and outside the courtrooms” will be pursued in order to reduce legal risks and the associated uncertainties. Investors have long criticized the fact that it has not yet been possible to draw a line under the glyphosate problem. Bayer brought the problems surrounding the weed killer Roundup, which contains glyphosate, into its own company in 2018 with its $60 billion takeover of the US company.
Source: Stern
