Earlier this week, Bayer CEO Werner Baumann warned investors of potential sales declines within the crop science division during the second quarter due to a steep decline in glyphosate market prices. Before the 2023 Q1 Investor Conference Call on Monday, Bayer revised the previous estimate of declined sales from $900 million euros ($997,965,000 million USD) to $1.7 billion ($1,884,773,000 USD).
"...sales for glyphosate-based herbicides dropped by 50% or approximately €700 million in the first quarter" said Bayer CEO Werner Baumann.
According to Bayer's website, ..."Bayer also expects to record a goodwill impairment of approximately 2.5 billion euros. This will result in negative Group net income of approximately 2 billion euros for the second quarter of 2023." The company's second-quarter earnings release is scheduled for August 8, 2023.
The Glyphosate Dillema
For decades, farmers have used glyphosate-based Roundup weedkiller as an effective herbicide, but in recent years the chemical compound has been put in question whether or not it is a carcinogenic substance to humans and animals.
Since Bayer acquired glyphosate creator Monsanto for $63 billion in 2018, they have faced extensive litigation over misleading marketing claiming their product Roundup weedkiller is environmentally safe, despite its reputation of cancer-contributing ingredients.
Back in 2020, Bayer reached an agreement to resolve the legacy Monsanto litigation for $10.9 billion. Since then it has replaced its glyphosate-based products in the U.S. lawn and gardening divisions but has yet to make changes to its agricultural products.
According to the Environmental Protection Agency, glyphosate is "not likely to be carcinogenic to humans," but plans to continue research on the chemical compound.
"Our company is grounded in the well-being of our customers. As a science-based company committed to improving people’s health, we have great sympathy for anyone who suffers from disease, and we understand their search for answers. At the same time, the extensive body of science indicates that Roundup™ does not cause cancer, and therefore, is not responsible for the illnesses alleged in this litigation. We stand strongly behind our glyphosate-based herbicides, which are among the most rigorously studied products of their kind, and four decades of science support their safety and that they are not carcinogenic", says Baumann.
In a recent review by the European Food Safety Authority, glyphosate "did not identify critical areas of concern" to human and animal health. This new finding could lead to Roundup's reapproval in the EU and boost sales for Bayer.
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