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BAYER INVESTORS WANT THE COMPANY TO SPEED UP ITS TURNAROUND EFFORTS
By Ludwig Burger and Patricia Weiss, Reuters

FRANKFURT - Some Bayer (BAYGn.DE), opens new tab investors say CEO Bill Anderson should speed up turnaround efforts, including boosting efficiency and drug development, to restore confidence and revive the company's share price that hit 20-year lows after its shock warning this week.

The agriculture and pharma group said on Tuesday that weak farmers' demand would likely translate into lower earnings next year. The warning sparked a 14.5% drop in the German company's shares, which continued a long streak of underperformance largely due to the 2018 takeover of Monsanto.

Anderson has started cutting managerial jobs, speeding up decision-making and slashing red tape to turn around the embattled industrial group, while putting on hold plans to break up its diversified businesses.

But top-20 shareholder Deka Investment said those moves have had little impact on recent results and the outlook. "The restructuring programme has to have an effect on revenues or costs. Otherwise shareholders' patience with management will be put to a hard test," said Ingo Speich, Deka's head of sustainability and corporate governance.

Some of Bayer's troubles are tied to industry trends such as slumping farmer incomes that are also hitting rivals BASF (BASFn.DE), opens new tab and Corteva (CTVA.N), opens new tab. But a delay in U.S. approval of a new generation of soy seeds was specific to Bayer and is likely to dent 2025 earnings, its quarterly report showed this week.

Markus Manns, a portfolio manager at mutual funds firm Union Investment, another Bayer shareholder, said Anderson's cost-cutting was the right direction but more needed to be done. "The next steps need to follow: the strengthening of the pharma pipeline and securing long-term and stable growth," said Manns. He also criticised management for not projecting when the earnings decline would bottom out.

Bayer declined to comment.

To read the entire report click here.


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