Bayer Crop Science ’18 Sales Up, Files Appeal in Glyphosate Suit
Bayer Crop Science said on Wednesday its fiscal 2018 sales were 14.266 billion euros ($16.2 billion). Monsanto, which it recently acquired, accounted for around 5.3 billion euros ($6 billion) of this figure, while the businesses divested to BASF contributed 1.5 billion euros ($1.7 billion) prior to the closing of the respective transactions in August 2018.
The 6.1% increase on a currency- and portfolio-adjusted basis largely resulted from the normalization of crop protection inventories in Brazil, where business in the prior year had been impacted by the required measures in this context.
Sales were also up (Fx & portfolio adj.) in the Asia/Pacific and North America regions. Bayer also benefited from service agreements – especially product supply and distribution agreements – with BASF in connection with the divested businesses. In Europe, sales were down due to unfavorable weather conditions and regulatory changes affecting certain SeedGrowth products in France.
“Over recent years we have systematically developed into a focused life science company, clearly aligned to the megatrends in health and agriculture and united under the strong umbrella brand Bayer,” Werner Baumann, Chairman of the Board said. “The acquisition (of Monsanto) in agriculture has lifted us to the number one position in this market. The integration of the two companies has gotten off to an excellent start.”
For Crop Science, Bayer sees 2019 sales rising by around 4% (Fx & portfolio adj.) and anticipates an EBITDA margin before special items of approximately 25%.
As of Jan. 28, 2019, lawsuits from approximately 11,200 plaintiffs had been served in the United States in connection with the crop protection product glyphosate.
“We disagree with the ruling by a court of first instance in the Johnson case and have therefore filed an appeal,” Baumann said. Also in respect of further proceedings, seven of which are currently scheduled for this year, he added: “We have the science on our side and will continue to vigorously defend this important and safe herbicide for modern and sustainable farming.”