Bayer (ETR:BAYGN) took another stride toward recovery on Tuesday, reporting solid first-quarter results owing to a revitalised consumer health division and a crop science business bolstered by rising agricultural commodity prices.
In constant currencies, core earnings per share increased 36 percent to 3.53 euros ($3.70) per share as agricultural science sales – mostly sales and pesticides – up 22 percent and consumer health sales increased 17 percent.
“Despite the considerable risks, including the reliability of supply chains and energy sources, our prognosis for this year remains confident, and we maintain the currency-adjusted estimate for the full year issued in March,” said CEO Werner Baumann in a statement.
Baumann has faced tremendous shareholder criticism after his massive purchase agreement for Monsanto left the business with legal liabilities in the billions of euros. Last Monday, more than three-quarters of shareholders voted against the company’s CEO compensation plan, expressing their displeasure with years of underperformance.
The Monsanto acquisition has at least had the effect of spreading revenues away from Europe and toward North America, protecting it from geopolitical turbulence in its home area.
“Russia’s invasion of Ukraine had no detrimental impact on group sales and profitability in the first quarter,” Bayer stated, adding that neither Russia nor Ukraine are among its top ten markets. They contribute for around 3% of overall group sales.
Bayer shares opened 0.7 percent lower than the wider DAX index, rebounding only 0.7 percent at 3:10 AM ET (0710 GMT). The DAX surged 1.1 percent, coming back after falling dramatically with US markets on Monday.
