EQS-News

After the first quarter: BayWa AG expects significantly more dynamic business in 2024

EQS-News: BayWa AG / Key word(s): Quarterly / Interim Statement/Quarter Results After the first quarter: BayWa AG expects significantly more dynamic business in 2024 (news with additional features) 08.05.2024 / 07:33 CET/CEST The issuer is solely responsible for the content of this announcement. Number: 01724-PIU07 | Date 8 May 2024

After the first quarter: BayWa AG expects significantly more dynamic business in 2024

• Revenue and result negative in the first quarter of 2024 as is typical for the season
• Board of Management confirms full-year guidance, Strategy 2030 measures take effect
• Mild weather conditions supporting development in the agriculture business unit, energy and construction business units affected by poor market conditions

 

Munich, 8 May 2024 – After a seasonally typical start to 2024, BayWa AG expects business development to be much more dynamic in the coming months. With revenue totalling €5.2 billion (Q1/2023: €6.3 billion), earnings before interest and taxes (EBIT) amounted to minus €61.3 million in the first quarter (Q1/2023: €91.8 million).

“It’s clear to see after the first three months of the year that we are on the right track,” said BayWa CEO Marcus Pöllinger. “Many of our Strategy 2030 measures are being successfully rolled-out in our Group’s business sectors and Group companies. Inventories and capital tied-up have already been reduced noticeably, for example in the Agri Trade & Service Segment: Compared to previous years, we have reduced product levels by 45%, but have retained our capacity to deliver, as we have streamlined our handling processes and are supplying the agricultural sector ‘just in time’. And this is why I am very confident about the rest of the financial year.”

The BayWa Board of Management confirms its guidance for 2024. The target corridor for BayWa AG’s EBIT is between €365 million and €385 million.

Renewable Energies: BayWa planning large-scale project sales in the second half of the year

BayWa AG’s performance in the first quarter of 2024 was driven by developments in the Renewable Energies Segment: While prices for solar modules continued to fall and weighed on trading margins, project rights with a total output of around 230 megawatts (MW) were primarily sold in the solar park and wind farm project business. BayWa expects further transactions on a substantially larger scale in the second half of the year. These will make a significant contribution to the development of earnings.