Bayer reports better than expected EPS in the first quarter

  •   28/04/2020 - 11h53
  •   DEHOUI Lionel

When we talk about Bayer, we are talking about a German company that specialises in the pharmaceutical and agrochemical fields. It was founded in 1863 in the town of Barmen, part of which is now Wuppertal. Its founders are well known to the business community in Germany. They are Johann Friedrich Weskott and Friedrich Bayer. The headquarters of the group is of course in Germany (Leverkusen). The Bayer group remains the first pharmaceutical company that was able to synthesise the aspirin molecule (1897). It is known for its development of medicines and plant protection products for agriculture. However, he also develops veterinary and other non-prescription health products. On Monday, he will review the first quarter like all the European companies that beat him to it. And this is where Bayer surprises analysts and shareholders.

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Bayer reports better than expected EPS in the first quarter
Image copyright: Sebastian Rittau

EPS growth

The surprise of the stock market news of this Monday remains the statistical data announced by the Bayer group. It states that in the first quarter of the current year 2020, it has achieved a very attractive net result. He states that it has grown by more than 20% to 1.49 billion euros. A figure that should convince its shareholders to show their support in this time of major health crisis. Its EPS is also interesting.

Looks like the German group has been walking on water in the first quarter of 2020. Indeed, Bayer recorded a core EPS which is clearly on a meteoric rise estimated at more than 9.9% at EUR 2.67. This figure honours the group's efforts and shows how skillfully it is managed. This EPS value far outweighs the market consensus. The group talks about a 35-point difference.


Bayer with EBITDA growth

The rising values continue for the German chemical giant Bayer. In the absence of all extraordinary items, the group's EBITDA grew by more than 10.2 percent to more than EUR 4.39 billion. The consequence is immediately felt on the group's revenues, according to the quarterly balance sheet presented on Monday. In fact, in the absence of perimeter and exchange rate effects, the Bayer group's revenues grew by more than 6%.

According to figures put forward by the German giant Bayer, its revenues are estimated at more than EUR 12.8 billion under the same conditions. It is clear that its values are astonishing in these times of crisis. And beyond all that can be said, the Covid-19 health crisis has not been a gift to the group. It was impacted like all European companies.

Information: On the point of the consequences of Covid-19 on its activities, the pharmaceutical group Bayer immediately warned that they will continue over the rest of the financial year 2020. Furthermore, he added that it is too early to provide exact figures as a balance sheet on the effects of the crisis. He believes he is unable to quantify the advantages and disadvantages of the crisis at present, except at a later date during the year.