„Bayer“ reported a net profit of 219 million euros, compared to a loss of 199 million euros in the same period last year. Operating profit increased by about 30 percent in the company’s Crop Science division, which produces seeds, soybeans, herbicides, and insecticides, but slightly decreased in the pharmaceuticals and consumer health divisions, both of which produce medicines.
According to Bayer, special expenses, “mostly related” to litigation costs, also decreased during the quarter to 172 million euros, compared to 981 million euros.
The company has spent more than 10 billion US dollars to resolve thousands of lawsuits related to glyphosate-based herbicides since acquiring the US agricultural chemicals group Monsanto in 2018, which developed the popular weed killer product Roundup.
The International Agency for Research on Cancer considers glyphosate a probable human carcinogen. Meanwhile, Bayer relies on scientific studies and regulatory approvals in the US and the European Union as evidence that this herbicide is safe.
In June, the company successfully proved to the US Supreme Court that it should be protected from so-called “failure to warn” lawsuits in US states, after the US Environmental Protection Agency decided that Roundup could be sold without any warning label.
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Bayer expects to conclude this story with a 7.25 billion US dollar settlement for the class action lawsuit and stated that a favorable US Supreme Court decision would deter potential withdrawal from this agreement.
“Our risk mitigation strategy is solid, and several important milestones lie ahead,” Bayer CEO Bill Anderson said on Tuesday.
Meanwhile, sales of glyphosate-based herbicides grew by 12.6 percent during the quarter, Bayer said. This growth was especially driven by strong increases in Europe, the Middle East, and Africa.
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