Bayer posts unexpected 1.9% gain in Q2 adjusted profit
Strong Q2 Performance and Strategic Developments
Quarterly Operating Profit Surpasses Expectations
FRANKFURT, Aug 4 (Reuters) - Bayer on Tuesday reported an unexpected 1.9% gain in quarterly operating profit on strong sales of seed technology for crops used in combination with weedkiller dicamba. Second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA), adjusted for one-offs, came in at €2.14 billion ($2.46 billion), above market expectations of €1.94 billion in an analyst consensus posted on the group's website.
Impact of Legal Developments on Bayer
The strong earnings are another boost for CEO Bill Anderson after the U.S. Supreme Court in June reined in thousands of lawsuits claiming Bayer's Roundup weedkiller causes cancer, removing a threat of billions of dollars in additional damages and settlements.
Investor Sentiment and Strategic Focus
Bayer shares have since gained about 19% but investors' attention has turned to how Anderson plans to strengthen the drug development pipeline while also reducing a heavy debt burden.
Debt Reduction and Asset Sales
Bayer on Tuesday added that it projects net debt at €29 billion to €30 billion euros in 2026, down from a range of 32 billion to 33 billion previously forecast.
Sale of Minority Stake in Contraceptive Unit
That was mainly due to Bayer's move last month to sell a minority stake in a unit making intrauterine devices and other long-acting contraceptives to private equity group Apollo for €3 billion.
($1 = 0.8690 euros)
(Reporting by Ludwig Burger, Editing by Miranda Murray)
