(Reuters) – Bayer cut its full-year profit outlook on Tuesday following a further deterioration in demand for glyphosate-based weedkillers and announced a 2.5 billion-euro write-down on assets related to the herbicide.
On the Frankfurt Stock Exchange, the Bayer title took 0.60% at 08:03 GMT.
The company announced in a press release published Monday at the end of the day to forecast for 2023 a profit before interest, taxes, depreciation and amortization (Ebitda), adjusted for exceptional items and currency fluctuations, of between 11.3 and 11.8 billion euros, against 13.5 billion euros in 2022.
This figure is lower than previous forecasts of €12.5 billion, or slightly higher.
“Based on anticipated market developments, particularly with respect to the glyphosate business, Bayer also expects to record a goodwill-related impairment of approximately €2.5 billion,” the company said in a statement.
The German manufacturer of drugs and pesticides thus provides for a net loss of 2 billion euros for the second quarter.
Weakness in agricultural markets also hurt rivals, so Bayer’s profit warning was widely expected by analysts.
(Report Thomas Escritt and Ludwig Burger; Gaëlle Sheehan, edited by Kate Entringer)
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