The herbicide Roundup. (Photo: Paul Hennessy / NurPhoto / NurPhoto via AFP)
Bayer, the German agricultural and chemical giant, said on Wednesday that the company suffered a loss of around R80 billion last year, after billions of rands in legal costs had to be set aside due to claims that its popular herbicide is believed to cause blood cancer.
The loss is greater than the loss the company had in 2024. Bayer said the loss was mainly due to the impact of “costs for legal proceedings”.
Bayer has already spent more than R190 billion to settle thousands of cases related to its Roundup herbicide.
The International Agency for Research on Cancer considers glyphosate, one of Roundup’s ingredients, to be a probable carcinogen (a substance that can cause cancer) for humans.
However, Bayer argues that scientific studies as well as regulatory approvals in the US and the European Union prove that this herbicide is safe.
Bayer said last month that about 67,000 cases were still pending, while the company announced a proposed class-action settlement in an effort to end the costly lawsuit.
The company also said last year that by September it had set aside about R236 billion to deal with litigation, almost double what it had previously budgeted for.
Although Bayer expects stable sales and services this year, the company said its cash flow will still be “strongly affected by settlements”.
Bayer’s overall profit, which excludes costs such as taxes and lawsuits, also fell 4.5%, partly due to the exchange rate.
Bill Anderson, Bayer’s chief executive, said the company could be proud of its performance and pointed out that it achieved its annual forecast after the forecast was adjusted last year.
“We achieved that forecast and also finished comfortably within the framework,” he said.