Bayer posts unexpected 1.9% gain in Q2 adjusted profit

Bayer reported a 1.9% gain in quarterly operating profit, exceeding market expectations, driven by strong sales of seed technology and reduced liability from the Roundup weedkiller lawsuits.

Bayer ​on Tuesday reported an unexpected ‌1.9% ​gain in quarterly operating profit on strong sales of seed technology for crops used ‌in combination with weedkiller dicamba.

Second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA), adjusted for one-offs, came in at €2.14 billion ($2.46 billion), above market ‌expectations of €1.94 billion in an analyst consensus posted on ‌the group's website. The strong earnings are another boost for CEO Bill Anderson after the U.S. Supreme Court in June reined in thousands of lawsuits claiming ⁠Bayer's ​Roundup weedkiller causes ⁠cancer, removing a threat of billions of dollars in additional damages and settlements.

Bayer ⁠shares have since gained about 19% but investors' attention has turned to ​how Anderson plans to strengthen the drug development pipeline while ⁠also reducing a heavy debt burden. Bayer on Tuesday added that it projects ⁠net ​debt at €29 billion to €30 billion euros in 2026, down from a range of 32 billion to 33 billion previously forecast.

That ⁠was mainly due to Bayer's move last month to sell ⁠a minority stake ⁠in a unit making intrauterine devices and other long-acting contraceptives to private equity group Apollo for €3 billion. ($1 = ‌0.8690 ‌euros)