Bayer Q1 operating profit jumps 9% on boost from soy business
Strong Quarterly Results and Strategic Developments
By Ludwig Burger
Q1 Financial Performance
FRANKFURT, May 12 (Reuters) - Bayer on Tuesday reported a 9% increase in quarterly operating profit that was well above market expectations, after an agreement with its main U.S. crop protection rival eased access to the soy seed market.
EBITDA and Analyst Expectations
First-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, came in at 4.45 billion euros ($5.23 billion), the German maker of drugs and crop chemicals said.
That surpassed analysts' average forecast of 3.93 billion euros, based on a consensus posted on the company's website.
Impact of Soy Business and Patent Losses
The boost from soy, more than offsetting the loss of patent protections for stroke prevention pill Xarelto and eye medicine Eylea, provides some respite for CEO Bill Anderson in his struggle to overcome costly litigation and massive debts.
Crop Science Unit Performance
Earnings at the Crop Science unit jumped 17.9% to 3.0 billion euros, boosted by the resolution of a soy licensing dispute with major rival Corteva this year.
Outlook and Legal Challenges
Guidance and Supreme Court Case
The group also confirmed its currency-adjusted guidance for 2026 results.
The U.S. Supreme Court has agreed to rule on Bayer's request to shut down thousands of lawsuits claiming its Roundup weedkiller causes cancer. But justices appeared split in their assessment after an initial hearing last month, weighing on the stock.
Management and Portfolio Strategy
Anderson has been overhauling Bayer's management structure but has suspended a portfolio review that could have led to a breakup of the diversified group.
Recent Acquisitions
Perfuse Therapeutics Deal
Bayer this month agreed to buy Perfuse Therapeutics for up to $2.45 billion, depending on development success, to strengthen its ophthalmology business.
(Reporting by Ludwig Burger, Editing by Linda Pasquini and Mark Potter)
