Bayer lifts forecast after healthy profit leap

Frankfurt am Main - German chemicals and pharmaceuticals giant Bayer on Thursday upped its forecast for 2017, after netting a big boost to profits on the back of higher sales in the first quarter.

Sales at the group grew 11.7% to €13.2bn, while profits added 38% to reach almost €2.1bn - both outstripping analyst forecasts.

Operating, or underlying, profit grew 34.3% to €3.1bn.

The group increased its forecast for the full year, upping revenue projections to €51bn and predicting growth of around 10% in operating profits excluding special items.

A strong performance at materials subsidiary Covestro, majority-owned by Bayer but with a separate stock market listing, contributed to the group's positive outlook.

Bayer reported healthy growth across its prescription drugs, over-the-counter medications, animal health and agrochemicals divisions.

The group based in Leverkusen, western Germany, still hopes to complete a merger with US seed and pesticide maker Monsanto, launched last year, which will be the biggest-ever acquisition by a German company if it goes ahead.

Both firms have approved the deal, which must now be cleared by competition authorities in Brussels and Washington.

Spurred by Monsanto's bad reputation in environmental circles, activists and politicians on both sides of the Atlantic have urged regulators to block the deal.

If completed, the merger will create a world-spanning giant with annual revenues of around €23bn and 140 000 employees.