Investing.com -- Shares in Bayer (ETR:BAYGN) rose in early European trading on Tuesday after the German group reported first-quarter core profit that topped analysts' projections.
A maker of everything from pharmaceuticals to crop protection products, Bayer has been attempting to overhaul its leadership structure, reduce debt and bring an end to a series of ongoing lawsuits that revolve around allegations its glyphosate weedkilled causes cancer.
Chief Executive Bill Anderson, who took over at the helm of the firm in 2023 and secured a vote of confidence from shareholders last month, said in a statement that "progress" is being made on a push to "get Bayer back on track."
“We’re consolidating roles, designing teams for more impact, and taking out layers," Anderson said. "The most important measure of our impact will be much greater than a job number or a cost savings target. It will be in our ability to innovate, grow our businesses, and improve life for our customers.”
Quarterly earnings before interest, tax, depreciation and amortization dropped by 1.3% to 4.41 billion euros, but was above company-provided average analyst expectations of 4.15 billion euros.
Anderson noted that the firm's pharmaceuticals division saw gains in "growth and profitability," while its crop sciences unit "outperformed in a difficult market." Bayer's consumer health segment "started slower" but is on pace to return to growth over the course of the fiscal year, he added.
Analysts at Stifel also said that net payouts for litigation were "rather low" at 167 million euros.
The company confirmed its currency adjusted forecast for its 2024 fiscal period. However, it flagged that the negative impact from "anticipated currency effects" has increased, a trend that is now projected to lead to a reduction in the forecast for annual EBITDA before special items to 10.2 billion euros to 10.8 billion euros. A prior estimate had seen the figure at 10.4 billion euros to 11.0 billion euros.