The logo of Bayer AG is pictured on the facade of the historical headquarters of the German pharmaceutical and chemical maker in Leverkusen, Germany, April 27, 2020. REUTERS/Wolfgang Rattay

FRANKFURT, Aug 4 (Reuters) – Agriculture and prescription drugs firm Bayer (BAYGn.DE) on Thursday lifted its 2022 earnings assistance on powerful demand from customers from farmers for its seeds and crop chemical compounds and better product sales of client wellness products and solutions.

Bayer is now targeting earnings right before interest, taxes, depreciation and amortisation (EBITDA), modified for distinctive goods, of about 13 billion euros ($13.21 billion), centered on June 30 overseas exchange fees, the place it experienced formerly predicted about 12 billion euros, it said in a assertion.

Bayer, which has been hit by litigation prices above statements that a weedkiller it acquired beneath its Monsanto takeover results in cancer, explained that 2nd-quarter modified EBITDA jumped 30% to 3.35 billion euros, above an regular analyst estimate of 3.28 billion euros posted on the firm’s website.

Prices of agricultural commodities, this kind of as corn and soy have surged globally immediately after Russia’s invasion of Ukraine disrupted farming and grain transportation there, prompting farmers elsewhere to use far more chemical substances and seeds to raise output.

The crop science division, which created the bulk of Bayer’s earnings in the course of the first fifty percent of the year, saw altered EBITDA surge by much more than 70% to 1.75 billion euros in the second quarter, beating a market consensus of 1.56 billion euros.

By contrast, a litigation settlement and produce-downs resulted in a internet decline of nearly 300 million euros for the quarter, the place analysts had projected a internet gain of about 1.5 billion, hit by distinctive expenses of 2.1 billion euros.

That provided 694 million euros set aside for an envisioned settlement with the Condition of Oregon in excess of waste drinking water contaminated with PCB, a chemical Monsanto generated up right until 1977.

Other charges integrated restructuring actions and generate-downs on sure belongings because of to a powerful rise in interest premiums.

($1 = .9842 euros)