Bayer CropScience Ltd Reports Decline in Quarterly Profit Amid Sluggish Demand

Bayer CropScience Ltd announced its unaudited financial results for the quarter and nine months ending December 31, 2023, revealing a decline in revenue and profit attributed to sluggish demand for its crop-protection products.

Team RuralVoice

Published: Feb 2, 2024 - 15:59 Updated: Feb 2, 2024 - 16:23

Bayer CropScience Ltd Reports Decline in Quarterly Profit Amid Sluggish Demand

Bayer CropScience Ltd announced its unaudited financial results for the quarter and nine months ending December 31, 2023, revealing a decline in revenue and profit attributed to sluggish demand for its crop-protection products.

In the third quarter (Q3) of Financial Year (FY) 2023-24, Bayer CropScience Limited (BCSL) earned Revenue from Operations of Rs 9,549 million, as compared to Rs 10,379 million in the corresponding period of FY 2022-23. Profit Before Tax (After Exceptional Items) stood at Rs 1,242 million as compared to Rs 1,836 million in the corresponding period of FY 2022-23.

For the nine months ended December 31, 2023, BCSL reported Revenue from Operations of Rs 43,117 million, compared to Rs 41,572 million for the corresponding period in FY 2022-23. Profit Before Tax (After Exceptional Items) stood at Rs 8,360 million as compared to Rs 7,949 million in the corresponding period of FY 2022-23.

Commenting on the quarterly performance, Simon Wiebusch, Vice Chairman/Managing Director and CEO, BCSL said, “An erratic monsoon led to low water reservoir levels. The resulting crop shifts and missed sprays, had an unfavorable impact on our quarterly sales performance owing to lower volumes and sales returns. While Crop Protection liquidation has been sluggish on the back of the weak season, we actively managed rebates and discounts and thus maintained our margins to a large extent. A more diversified corn footprint supported seeds sales”

“We continue to steadily expand our efforts in support of the Government’s collectivization endeavors by reaching out to over 3000 Farmer Producer Organizations (FPOs), of which 10 belong to women, with BCSL supporting the creation of over 110 FPOs in the country,” Weibusch said in a statement.

Simon Britsch, Chief Financial Officer, BCSL said, “We continued our efforts and focused on optimizing our operating expenses, achieving sizable efficiencies in the past 9 months. We were thus able to expand our profit margins in a difficult market environment. While managing operating expenses, we continue to make significant investments into future growth and market reach.”