German pharmaceuticals and chemicals giant Bayer on Wednesday said it expected further growth this year after a record performance in 2016, as its mammoth take-over of US seedmaker Monsanto remains on track. "We again posted a record operating performance - and are making good progress with the agreed acquisition of Monsanto as well," chief executive Werner Baumann said in a statement.
The Aspirin-maker said net profit grew by 10.2 percent to 4.5 billion euros ($4.7 billion) last year. Group sales increased by 1.5 percent to 46.8 billion euros, while underlying or operating profit was up 10.2 percent at 11.3 billion euros. Growth was mainly powered by Bayer's prescription medicine division, led by a 30-percent jump in sales for its blockbuster drug Xarelto, an anti-coagulant. The over-the-counter medicines unit, which includes household brands such as Alka-Seltzer and Rennie antacids, saw earnings fall.
The firm's closely watched agrochemicals division disappointed in 2016, with sales down more than two percent to 9.9 billion euros. Bayer blamed the setback on a "difficult market environment", particularly in Latin America, and falling demand for insecticides globally. Bayer's agriculture activities are in the spotlight as it seeks a $66-billion take-over of US seed and pesticide supplier Monsanto, in what would be the largest ever acquisition by a German firm.
The deal still requires regulatory approval from the European Union and the United States. But Bayer said it was "confident" that the transaction would be completed this year. The proposed tie-up has been slammed by environmentalists as a "marriage made in hell" over fears it would hold excessive power over farmers and the food chain. CEO Baumann said he was confident the deal would get the regulatory green light, underlining the complementary geographical fit of the two businesses.
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