Bayer (BAYGn.DE) warned operating earnings would decline in 2023, adding to the challenges for its new CEO who will take the helm in June, as the agriculture and healthcare company is hit by higher costs and the reversal of last year's price boost for its weedkillers.
The downbeat outlook, which pushed its shares nearly 5% down to a four-week low on Tuesday, comes after a new chief executive was appointed to take over in June, sparking speculation the company might prepare to break up.
Bayer said in a statement that earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, would likely be between 12.5 billion euros and 13 billion euros ($13.2 billion - $13.8 billion) this year, excluding the effect of currency swings.
That would be a decline from the 13.5 billion reported for 2022, which was up 20.9% from a year earlier and slightly higher than analysts had expected on average, according to a consensus estimate posted on the company's website.
"We really are living through a time of major upheavals," he told journalists on a call. "It means that we’re active in the right fields, since health and nutrition are fundamental human needs," he added.
Bayer said this month it would replace its CEO early, recruiting former Roche (ROG.S) executive Bill Anderson, amid demands by some investors that Bayer should simplify its diversified structure and split into separate groups.
