US seeds and agrochemicals company Monsanto Co, which is being bought by Germany’s Bayer AG for $66 billion, swung to a quarterly profit, helped by higher demand from South America.
Sales of soyabean seeds and traits jumped 37 per cent as more farmers in South America sowed the company’s genetically modified soyabean seed Intacta RR2 Pro.
Monsanto agreed in September to a sweetened $128-per-share offer from Bayer that would create a company commanding more than a quarter of the world market for seeds and pesticides. Bayer and Monsanto have said they are confident that the deal will pass regulatory scrutiny.
Net profit attributable to Monsanto was $29 million, or 7cents per share, in the first quarter ended November 30, compared with a loss of $253 million, or 56 cents per share, a year earlier.
Excluding items, the company earned 21 cents per share. Net sales rose over 19 per cent to $2.65 billion.