Global agrochemical company Bayer Group lowered its guidance for 2023 due to a significant decline in sales of glyphosate-based products.

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The German pharmaceuticals and chemicals giant expects sales of €48.5 billion - €49.5 billion on a currency-adjusted basis in 2023 against the previous outlook of €51 billion - €52 billion.

Bayer now expects its Earning before interest tax depreciation and amortisation (EBITDA) before special items to range between €11.3 billion - €11.8 billion in 2023 against the previous outlook of €12.5 billion - €13.0 billion.

The company does not anticipate any free cash flow for the year now, compared to the earlier estimate of €3 billion.

Factors such as further price declines and reduced volumes due to channel de-stocking would impact sales, the German firm has stated.

Among stocks in India that get impacted due to this outlook include Bayer Cropsciences, UPL and Sumitomo Chemicals.

Glyphosate is the active ingredient in many weedkillers. Bayer Cropscience Ltd. sells the glyphosate-based product Roundup, which is a non-selective herbicide which can kill any weed or grass.

A number of countries have banned the use of glyphosate due to its hazardous impact on health. Bayer has faced lawsuits in the US from Roundup users who blamed the chemical for non-Hodgkin's lymphoma and other cancers.

Shares of another chemical maker UPL Ltd., which sells glyphosate-based product Sweep, declined by nearly 1 percent to hit its 52-week low of Rs 625.10.

Sumitomo Chemical India Ltd., which sells Glycel glyphosate products, is currently trading flat.

Bayer CropScience shares were trading 1.5 percent lower at Rs 4,535.05.

First Published:Jul 25, 2023 11:10 AM IST