Bayer reduces financial outlook for 2023

Bayer has adjusted its financial outlook downwards for the year 2023. According to information from the company, the main reason was a significant decline in sales of glyphosate-based products.

For the year 2023, Bayer now forecasts sales of between €48,5 and €49,5 billion based on exchange rates. That is, based on average monthly exchange rates in 2022 (previous outlook: €51 to €52 billion).

The company has now reported that EBITDA before special items is expected to range from €11,3 to €11,8 billion in 2023 (previous outlook: €12,5 to €13,0 billion). Basic earnings per share were adjusted to between €6,20 and €6,40 based on currency adjustment (previous outlook: €7,20 to €7,40). Free cash flow was revised to zero euros (previous outlook: €3,0 billion).

For the second quarter, audited numbers are not yet available. Sales are expected to be around €11,0 billion. EBITDA before special items is expected to be approximately €2,5 billion euros. Bayer forecasts underlying earnings per share of approximately €1,20 euros and negative free cash flow of €0,5 billion (all quarterly figures based on exchange rates as of June 30, 2023).

When reporting its first quarter results, Bayer was already targeting the lower end of its Group sales and profit forecasts for this year. Further price drops and lower volumes due to channel depletion, especially for glyphosate-based products, as well as adverse weather conditions added to the pressure.

Based on anticipated market developments, in particular with regard to the glyphosate business, Bayer also expects to record goodwill impairment of approximately €2,5 billion euros. This will result in losses of approximately €2 billion in the second quarter of 2023.

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