Monsanto's Q3 revenue rises ahead of Bayer deal

US agrochemical giant Monsanto, which agreed to be bought by Germany's Bayer AG in August, reported its losses narrowed in the third quarter as revenues grew more than anticipated due to a rise in seed sales.

The $66bn deal with Bayer would create one of the world's largest agrochemical companies, subject to regulatory approval.

For the three months ended 31 August, the St Louis-based company had expected to report a loss due to a slump in commodity prices and farm incomes, but net sales for corn seed rose 34% from last year.

Chief Executive Hugh Grant, said: "Despite challenges to our business in fiscal year 2016, we delivered on the drivers that position Monsanto for the return to earnings per share growth in the year ahead.”

He added that one of the company's priorities for the year included "executing on the necessary steps to close the deal with Bayer”, which is expected to close by the end of 2017.

The company’s expenses decreased by about 10% thanks to cost-cutting measures narrowing the net loss to $191m, or 44 cents per share, from $495m, or $1.06 per share in 2015.

In adjusted terms, the EPS loss came to -7 cents.

Total revenues increased by 8.8% to $2.56bn and revenue from seeds and genomics, rose by 25% to $1.57bn.

Sales in the agricultural productivity segment fell 9.7% to $997m.

Shares in Monsanto were up 0.69% to 102.31 at 1018 ET.