Bayer Slashes Outlook as Glyphosate Demand Weakens Further

July 25 (Reuters) – Further deterioration in demand for glyphosate-based weed killers led Bayer (BAYGn.DE) to cut its full-year earnings outlook and announce a 2.5 billion euro ($2.8 billion) write-down on glyphosate-related assets.

In an unscheduled statement late on Monday, the German drugs and pesticides maker said it was projecting 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs, to be in a range of 11.3 billion euros ($12.5 billion) and 11.8 billion euros on a currency-adjusted basis, down from 13.5 billion euros reported for 2022.

That was lower than a previous 2023 outlook of 12.5 billion euros, or slightly higher.

Free cash flow would come in at zero, down from a previous prediction of 3 billion euros, said the company, which is due to release detailed second-quarter results on Aug. 8.

“Based on the anticipated market development, in particular with respect to the glyphosate business, Bayer also expects to record a goodwill impairment of approximately 2.5 billion euros,” it said.