German chemical and pharmaceutical large Bayer pledged Tuesday to “urgently” deal with key challenges after falling deep into the crimson in 2023, closely burdened by woes associated to its glyphosate-based weedkillers.
But CEO Bill Anderson, employed final 12 months to assist steer the troubled group in a brand new route, dominated out any imminent firm breakup – regardless of mounting strain from activist buyers.
Bayer swung to a 2.9-billion-euro loss ($3.1-billion) in 2023 after reserving a web revenue of 4.15 billion euros a 12 months earlier, it mentioned in an announcement.
Sales fell by 6% to 47.6 billion euros, partly due to “significantly” decrease costs for glyphosate-based herbicides within the group’s crop science division.
Earnings had been additionally dragged down by heavy impairment losses in the identical division.
Sales of prescription medicines within the prescribed drugs division had been flat, whereas the buyer well being unit noticed an uptick partially due to larger demand for dermatology merchandise.
Anderson mentioned Bayer confronted “four challenges that urgently must be addressed.”
Bayer, the maker of Aspirin, has to strengthen its prescribed drugs pipeline, he mentioned, referring to the necessity to launch new merchandise to compensate for the expiration of patents on a number of blockbuster medicine within the coming years.
The group additionally wants to handle large litigation points linked to the Roundup weedkiller, Anderson mentioned, an issue Bayer inherited within the 2018 takeover of U.S. agency Monsanto.
Bayer has confronted a wave of lawsuits within the U.S. over claims Roundup, which accommodates the lively ingredient glyphosate, causes most cancers. Bayer denies the declare however has spent billions of euros on authorized prices in recent times.
Anderson added that the group’s excessive debt ranges and a hierarchical forms that “blocks progress” had been additionally key points that want tackling.
But he pushed again in opposition to strain from activist buyers who wished to separate up the corporate and spin off at the very least one department to generate money.
On the query of a potential breakup of the group, “our answer is ‘not now’ – and this shouldn’t be misunderstood as ‘never,'” mentioned Anderson.
“Our priority is on tackling our challenges,” he added.
Bayer, which has already warned there could be “significant” job cuts to assist flip across the group’s fortunes, mentioned it aimed to make 2 billion euros a 12 months in financial savings from 2026.
Looking forward, the group expects full-year gross sales to return in at 47 billion to 49 billion euros in 2024, whereas earnings are anticipated to say no once more.
Source: www.dailysabah.com