Bayer: Weedkiller producer will lose $2.8 billion as sales decrease

The announcement came as the corporation cut its full-year forecast.

In total, it has set aside more than $15 billion (£11.7 billion) to resolve lawsuits alleging that its herbicides cause non-Hodgkin’s lymphoma and other diseases.

Bayer has denied any wrongdoing, but has stated that the payouts will eliminate “uncertainty.”

The Leverkusen-based company announced on Monday that it expects a net loss of €2 billion in the three months to the end of June.

According to Bayer, this was mostly due to “a significant further decline in sales of glyphosate-based products.”

The company also predicted that its pre-tax profits could fall as low as €11.3 billion this year, down from €13.5 billion in 2022.

According to a Bayer representative, additional glyphosate-based solutions have entered the market since the epidemic, resulting in decreasing demand for the company’s weedkillers.

“The normalization of the competitive environment surrounding glyphosate was more pronounced than we anticipated.” “This was the primary reason for our outlook,” the official continued.

Monsanto, a US corporation, first introduced Roundup nearly five decades ago. It quickly became the world’s best-selling weedkiller.

Bayer paid $63 billion for Monsanto in 2018. Bayer now controls more than a fifth of the worldwide seed and pesticide supply.

The same year, a California court announced the first decision tying Roundup to cancer, awarding claimants considerable compensation.

Roundup users filed complaints, blaming the weedkiller and its key ingredient glyphosate caused their non-Hodgkin’s lymphoma and other diseases.

Bayer announced a $10.9 billion settlement in 2020 to settle tens of thousands of cases while maintaining that glyphosate was safe.

In March of last year, the business stated that it had settled 107,000 of around 138,000 Roundup-related illnesses.

“The Roundup settlement is the right action for Bayer at the right time to bring a long period of uncertainty to an end,” Bayer CEO Werner Baumann stated in 2020.

He reiterated the company’s position that “Roundup does not cause cancer, and thus is not responsible for the illnesses alleged in this litigation.”

Glyphosate is the active chemical in many weedkillers, but research on its safety is far from definitive.

Some countries have prohibited glyphosate-containing herbicides, but others continue to use them.

There is no statewide prohibition on glyphosate in the United Kingdom, though some local governments have stopped using it because to safety concerns.

Bayer is scheduled to release earnings on August 8th.

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