German chemical giant the Bayer Group has adjusted its full-year outlook mainly due to a further decline in sales of glyphosate-based products.

In a statement on 24 July, the company said it was projecting full-year 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA) – adjusted for one-offs – at €11.3bn-€11.8bn (US$12.5bn-US$£13bn) on a currency-adjusted basis, down from its previous outlook of €12.5bn-€13bn (US$13.7bn-US$14.3bn) and €13.5bn (US$14.8bn) the previous year.

Free cash flow would come in at zero, down from a previous forecast of €3bn (US$3.3bn), the company said, adding that detailed second-quarter results would be published on 8 August.

“Based on the anticipated market development, in particular with respect to the glyphosate business, Bayer also expects to record a goodwill impairment of approximately €2.5bn (US$2.8bn). This will result in negative group net income of approximately €2bn (US$2.2bn) for the second quarter of 2023,” the company said.

According to analysts at Deutsche Bank quoted in a 25 July report by Reuters, dry weather conditions had reduced farmers’ demand for seeds and pesticides.

When publishing its first quarter results in May, Bayer had said its full-year results were likely to come in at the lower end of its group sales and earnings that had been forecast for this year.

“Further price declines and lower volumes due to channel de-stocking, especially for glyphosate-based products, as well as adverse weather conditions have increased pressure,” the company said.