Bayer AG Stock: Massive Loss Triggers Forecast Cut

Bayer AG reported a staggering operational loss of 4.1 billion euros in the third quarter of 2024, primarily due to a substantial write-down in its agricultural business. The German pharmaceutical and chemical giant saw its revenue decline by 3.6% to 9.97 billion euros, with currency effects playing a dampening role. Adjusted EBITDA plummeted by nearly 26% to 1.25 billion euros. In response to these disappointing results, Bayer has lowered its annual forecast for EBITDA before special items to between 10.4 and 10.7 billion euros.

Challenges Across All Divisions

The company's pharmaceutical segment faced headwinds from unfavorable currency effects and increased licensing fees. Meanwhile, the agricultural business suffered from a decline in glyphosate-based herbicides and corn seed sales. Looking ahead to 2024, Bayer anticipates declining revenues in its Crop Science division and reduced growth in Consumer Health. These developments led to a sharp drop in Bayer's stock price, with shares plummeting over 11% in XETRA trading. Despite these challenges, the company has extended the contract of its Chief Financial Officer until May 2026, signaling a commitment to financial continuity as it navigates through turbulent times.