Bayer reported this morning lower-than-expected earnings for the last quarter of 2015 with a meaningful miss to consensus expectations on core EPS (EUR1.07 vs EUR1.21) despite in-line sales thanks to strong US operations for CropScience. Based on these light numbers, Bayer is forming a first cautious guidance that should be another disappointment for the investment community. The group is guiding towards low-single digit growth in sales and mid-single digit growth in adjusted EBITDA with Fx playing slightly negative where CS anticipates reported 8.5% growth. Capex for 2016 is also higher than expected whereas net debt should stay well above our expectations. We are far from the strong growth profile market was expecting from Bayer in the decade. FV under review.
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