Wrestling inflation, COVID-19 and the Ukraine conflict, Bayer stocks up to evade future manufacturing bottlenecks: CEO
With hands in pharmaceuticals, consumer health and crop sciences, Bayer has multiple businesses to fall back on in hard times. But that also means the company is exposed to the current confluence of COVID-19, inflation and the Ukraine conflict on multiple fronts.
While the German conglomerate achieved gains across all three sectors for the third quarter of 2022, “we too have to contend with the current unfavorable business environment,” Bayer CEO Werner Baumann told investors on a conference call Tuesday.
Given the volatile situation around the globe, Bayer’s “top priorities” at the moment are locking down raw materials and supply chain stability, Baumann said. To that end, the company is continuing to build up inventory to “mitigate the impact of supply bottlenecks,” he said.
Bayer is also working closely with contract manufacturers and suppliers to strengthen its supply chain, the company said.
Meanwhile, Baumann also flagged “energy supply risks” in Germany, where Bayer is angling to wean itself off Russian gas completely by the end of 2022.