Bayer sales in the first quarter, expected profit growth with crop science in focus – earnings overview

By Cecilia Butini

Bayer AG is expected to report results for the first quarter on Tuesday. Here’s what you need to know:

SALES: Sales are expected to rise to 13.82 billion euros ($ 14.58 billion) in the first quarter, according to the company’s consensus. That would be an increase from 12.33 billion euros as the company reported in the first quarter of 2021.

NET PROFIT: Net profit is expected to reach 2.37 billion euros in the quarter, according to the company’s consensus, compared to 2.09 billion euros in the same quarter last year.

WHAT TO WATCH:

–SCIENCE: Bayer’s agricultural division will once again be the center of attention during earnings, and its margin progression will be a special area of ​​focus, UBS analysts said in a note. “The fundamentals in the Crop Science department are still strong despite macro uncertainty,” they say. While first-quarter results will focus mainly on business results, investors would also welcome an update on the ongoing glyphosate-based weed killer, according to UBS.

– PHARMACEUTICALS: The current year is an investment year for Bayer’s pharmaceutical division, and it is expected to be a focal point during earnings in the first quarter, says UBS. The German pharmaceutical and agricultural company expects to extend the patent for its blood thinner Xarelto, as well as solid trends in the treatment of Nubeqa prostate cancer and Kerendia kidney disease, Citi analysts said in a note. This is due to the better prospects for the pharmaceutical product, which helps put the division in a relatively strong position, says Citi.

Write to Cecilia Butini at [email protected]

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