Bayer (ETR: BAYN) announced its full-year results on Wednesday, reporting lower sales in all their business units in the period three months to December.
Total group sales were down 2.6 percent to 8.60 billion euros, compared to 8.80 billion in 2016 in the fourth quarter. Following the announcement early this morning, shares fell 3.7 percent, hitting its lowest record in over 15 months.
The sector which suffered the biggest decline was Bayer’s Consumer-health business with a 9 percent fall in sales.
The pharmaceutical giant blamed the Chinese authorities for this decline, after they changed the law with over-the-counter skincare brands, which now have to be purchased with prescription.
The Crop Science sector also saw a decline in earnings attributable to the difficult situation in Brazil.
In addition, US tax reforms had a huge impact in the company. Net profit descended by 70 percent to 148 million euros after they suffered a 455 million euro hit from the tax reform.
Moreover, Bayer announced the deal with US Monsanto is being delayed due to regulatory approvals from the antitrust authorities.
The group is expecting to close the $66 billion deal in the second quarter of 2018.
Although it has not been popular among shareholders, the company is fighting for this deal to take the agriculture sales to the same level as their healthcare business.Â
“We took major steps toward the proposed acquisition of Monsanto,” said chairman Werner Baumann.
For the full-year the German group sales had an increase of 1.5 percent to 35 billion euros, marking another record in the pharmaceutical sector.
Last year the giant achieved a big step towards the full separation from Covestro by selling 36 percent of the company for 4.7 billion euros.Â
“Operationally, 2017 was a year of ups and downs,” said Baumann. “We remain focused on our objectives and are convinced of our long-term perspective. We therefore have every reason to look to the future with optimism.”
Shares were down 3.16 percent, trading at 95.00 euro, as of 12:40 (GMT).