Bayer Says Monsanto Deal on Track, Eyes Record 2017
Frankfurt: German pharmaceuticals and chemicals giant Bayer on Wednesdayreportedrecordsalesand profits for 2016 and said it expected further growth in 2017, as its goal to seal a mammoth takeover of US seedmaker Monsanto remains on track.
“Weagainpostedarecordoperating performance—andaremakinggood progress with the agreed acquisition of Monsanto as well,” chief executive Werner Baumann said in a statement.
The Aspirin-maker said net profit grew by 10.2% to 4.5 billion euros ($4.7 billion) last year, slightly below the 4.7 billion euros analysts surveyed by Factset had expected.
Group sales increased by 1.5% to 46.8 billion euros, in line with expectations, while underlying or operating profit before special items was up 10.2% at 11.3 billion euros. Growth was mainly powered by Bayer’s prescription medicine division, led by a 30% jump in sales for i t s bl o c kbuster drug Xarelto, an anticoagulant.
The over-the-counter medicines unit, which includes household brands such as AlkaSeltzer and Rennie antacids, saw earnings fall. The firm’s closely watched agrochemicals division disappointed in 2016, hit by what Bayer said was a weak market environment “particularly in Latin America” and falling demand for insecticides globally.