Unlock the Editor’s Digest without spending a dime
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
Bayer’s new chief government Bill Anderson has blasted the German conglomerate’s efficiency as “not acceptable”, underlining the group’s battle to revive its fortunes after the ill-fated acquisition of Monsanto.
The firm, which is greatest identified for creating aspirin greater than a century in the past, is exploring splitting off its crop sciences enterprise or its shopper well being division in an effort to appease disgruntled traders.
Anderson, who has led Bayer since April after becoming a member of from Swiss drugmaker Roche, has beforehand mentioned that every one choices have been on the desk however on Wednesday narrowed these down, ruling out splitting the group into three.
Bayer’s $63n acquisition of US crop science group Monsanto in 2016 has thus far didn’t ship on its promise. It has as an alternative saddled the German firm with debt and an unlimited authorized struggle within the US over Monsanto’s allegedly carcinogenic weedkiller Roundup. Bayer has denied the product causes most cancers.
In an announcement on Wednesday alongside Bayer’s third-quarter outcomes, Anderson mentioned: “We’re not happy with this year’s performance.” The American added that “nearly 50 billion euros in revenue but zero cash flow is simply not acceptable”.
Headquartered in Leverkusen, Bayer lowered its full-year forecast over the summer season. Anderson mentioned on Wednesday that assembly the revised forecast may very well be a stretch as a result of it “requires a strong fourth quarter”.
In the third quarter, working revenue excluding one-offs plunged 48 per cent from a yr in the past to €709mn whereas revenues dropped 8 per cent to €10.3bn. Excluding forex swings, revenues have been largely steady. Net debt climbed 8 per cent to €38.7bn.
The firm mentioned it might lower “multiple layers of management and co-ordination” by the top of this yr as Anderson goals to shift the majority of the decision-making “from managers to the people doing the work”. This will end in “a significant reduction in the workforce”.
