Bayer lawsuits grow
The bad news just continues for Bayer as the number of lawsuits alleging a link between its pesticide Roundup and cancer have shot up from 13,400 cases to 18,400 in the last three months.
Also its net earnings halved due to increased seasonality.
However, on the plus side, it just announced a 21% increase in second quarter sales, factoring in last year’s Monsanto acquisition, and it also calmed nerves by keeping its full year outlook unchanged.
Sales at its newly-enlarged cropscience division shot up by 60 per cent thanks to last year’s $63bn acquisition of the US rival.
You can see why Bayer took the risk in buying Monsanto given its impact on sales BUT it just seems to me that they are very confident that the whole Roundup nightmare won’t just sink everything.
Strong sales for Greggs
The second thing I wanted to mention today was Greggs which just reported its best ever sales growth.
It managed to almost triple its sales growth in the first half, versus the same time period last year, with help from its now infamous vegan sausage roll – and it topped things off by announcing a special dividend.
It is now expanding its vegan range, a gluten-free product lineup and offering pizza in the evenings and continues to increase its store numbers.
Trading continues to be strong and the company continues to invest in various strategic initiatives although it was at pains to point out their concerns over Brexit and will be building up supplies of key ingredients.