Frankfurt, Germany (4E) – Bayer AG reported on Monday that it saw strong demand for its latest medical drugs and crop-protection products, boosting its first-quarter net profit by 23 percent as the German pharmaceutical and chemicals giant’s performance topped analysts’ projections.
Net profit climbed to 1.42bn euros ($1.96bn) in the quarter ended March 31 on a 2.8 percent gain in revenue to 10.56bn euros from the year-earlier period despite unfavorable foreign exchange impacts as the euro strengthened against major currencies. Revenue climbed to 8.4 percent, after taking into account currency swings and changes in the company’s portfolio of drug and chemical assets.
Combined sales for Bayer’s major drugs were 598mn euros , helping Bayer’s health care revenue grow by 2.9 percent. The group’s CropScience segment posted a 4.9 percent gain in revenue, boosted by warm weather in Europe that resulted to early planting, as well as robust sales in South America.
Full-year group sales, adjusted for currency and portfolio effects, are predicted to grow 5 percent, according to Bayer. Adjusted earnings before interest, taxes, depreciation and amortization or Ebitda are likely to rise by a single-digit percentage, the group said.