The largest pharmaceutical company in Europe – Bayer AG – made an official statement today, posting a 23% boost in its net profit for the first quarter of the current financial year, due to increased demand for its newest drugs and crop-protection products. The companys results surpassed the median analysts forecast.
In its statement, the company revealed that its first-quarter net profit jumped to 1.42 billion euros (1.96 billion dollars). The Bayer AGs revenue was reported to have risen by 2.8% to 10.56 billion euros compared to the same period a year ago. The company also confirmed its full-year forecasts of group sales, which are projected to increase by 5%. Bayer also confirmed its expectations for the adjusted earnings before interest, taxes, depreciation and amortization.
Mr. Marijn Dekkers, who is the Chief Executive Officer of Bayer AG, said in the companys statement, which was cited by the Wall Street Journal: “We are confident about our business development for the rest of the year and confirm our guidance for 2014.”
At the same time, several people familiar with the process, who asked not to be named, because the matters are still not public, reported that the company is considering to sell its plastics unit, which is valued at about 10 billion dollars. The step is provoked by Bayers desire to focus on expanding its health unit. According to the people with knowledge of the matter, the company has not made any final decision about its plastics units fate.
An eventual sale of Bayer Material Science would provide the company with the opportunity to focus on expanding its drug and lifescience portfolio with new products. Moreover, it will bring more than 7.8 billion euros (10.8 billion dollars) to the companys account.
Bayer AG added 4.25% to trade at 99.84 euros per share by 11:06 GMT, marking a one year change of +23.02%. According to the information published on the Financial Times, the 29 analysts offering 12-month price targets for Bayer AG have a median target of 110.00, with a high estimate of 125.00 and a low estimate of 72.00. The median estimate represents a 14.86% increase from the last price of 95.77.
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