Bayer, a German agricultural and medicines giant, announced a better-than-expected 27.5 percent increase in quarterly adjusted earnings, thanks to robust growth in its seeds and pesticides businesses.
The Crop Science division, which generates the bulk of its earnings during the first half of the year, saw adjusted EBITDA jump by half to 3.67 billion euros, beating a market consensus of 2.95 billion euros, more than off-setting weaker pharmaceutical earnings.
Adjusted for one-time events, first-quarter earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at 5.25 billion euros ($5.55 billion), significantly above the average analyst forecast of 4.65 billion euros posted on the company’s website.
Prices of agricultural commodities like corn and soy have surged globally amid concern that Russia’s attack on Ukraine will disrupt farming there as both countries are major grains exporters.
The group confirmed its guidance for full-year results.
Bayer’s Chief Executive Werner Baumann told shareholders at last month’s annual general meeting that favourable agricultural markets had helped the group to a very successful start to the year.
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