BayWa AG: Transformation shapes the 2024 financial year

Financing for transformation concept secured until end of 2028 Reduction of financial liabilities progressing as planned Necessary write-downs with no impact on the implementation of the restructuring plan result in an operating result (EBIT) of around minus 1.1 billion euros in the 2024 financial year After interest and taxes, the Group reports a net loss of €1.6 billion for the year Operating result for Q1 2025 above previous yearBayWa AG's consolidated revenue declined to €21.1 billion in 2024 (previous year: €23.9 billion). Operating profit (EBIT) after taking into account unscheduled write-downs amounted to just under minus 1.1 billion euros (previous year: 304.0 million euros). After deducting interest and taxes, BayWa AG closed the past financial year with a loss of approximately 1.6 billion euros.The figures for the 2024 financial year are the result of the far-reaching transformation of BayWa AG. Against the backdrop of a liquidity crisis in the summer of 2024, BayWa AG initiated comprehensive restructuring measures and commissioned an external restructuring report on the Group's ability to continue as a going concern.Frank Hiller, CEO of BayWa AG, emphasises: "Last year, BayWa experienced the most serious crisis in its history. This meant that a number of necessary, tough and courageous decisions had to be made. However, these decisions are already showing their effect. Now we must continue along this path with determination. Our goal remains to stabilise BayWa economically and lead it into a sustainable future. The initial results for 2025 are positive. We are confident that we will be able to regain the trust of our customers and suppliers in BayWa."Michael Baur, Chief Restructuring Officer (CRO), adds: "Thanks to the confidence of creditors and major shareholders in BayWa's restructuring, we have been able to adopt a financing concept that will ensure financial stability for BayWa until 2028. The implementation of our transformation plan is proceeding according to schedule. This includes further debt reduction, the optimisation of product ranges and processes, and targeted efficiency measures. These measures are having an effect and are creating the necessary confidence within the organisation to continue on the path of transformation."For BayWa, 2025 will be a year of stabilisation. The restructuring plan is being implemented consistently, and initial progress is already visible. Adjusted for restructuring costs, EBITDA for the first three months of 2025 amounted to 46.6 million euros (previous year: 11.0 million euros). This result is due to cost efficiencies and margin improvements that exceeded expectations.Following the court confirmation of the StaRUG plan by the Munich Local Court, the agreement with the financing partners on a stable financing framework for the restructuring period and the approval of the final restructuring report, the key prerequisites for the further operational restructuring of the BayWa Group and its return to profitable growth have been successfully met. The Group has already initiated far-reaching measures, such as the sale of investments to reduce financial liabilities and comprehensive measures to improve efficiency and the product portfolio. With the successful implementation of the first tranche of the announced capital increase of €125 million, the Group's financing will be further strengthened until 2028.Development of the individual segmentsRegenerative Energies segmentIn the Renewable Energies segment, which is primarily accounted for by BayWa r.e. AG, revenue fell by 28.9 percent to €4.1 billion (previous year: €5.8 billion), while EBIT amounted to minus €732.0 million (previous year: €193.8 million). In addition, high expenses were incurred in connection with refinancing and restructuring. Lower electricity revenues in the IPP business, delayed project sales, reduced market prices in the solar module trading business ( ) and extensive write-downs on assets had a significant negative impact on earnings.Energy segmentThe Energy segment also recorded a decline in revenue of 9.8 percent to 2.5 billion euros (previous year: 2.8 billion euros). EBIT fell to minus 8.2 million euros (previous year: 17.8 million euros) after impairment losses. Demand for heat energy sources such as heating oil and wood pellets was weaker due to the mild winter. In addition, prices fell sharply, particularly for wood pellets, and demand for new heating systems declined.Cefetra Group segmentSales in the Cefetra Group segment fell by 9.3 per cent to 4.8 billion euros (previous year: 5.3 billion euros). EBIT was slightly negative at €0.3 million (previous year: €64.6 million). While business with traditional agricultural commodities weakened, the subsidiary Sedaco benefited in the higher-margin food ingredients segment from stable demand from Asia and a good procurement network in Africa.Agricultural segmentWeather-related crop losses and intensified competition led to a 7.1 per cent decline in sales to 4.6 billion euros (previous year: 4.9 billion euros). EBIT fell to minus 97.1 million euros (previous year: 26.4 million euros). Stronger demand for inputs such as crop protection and fertilisers only partially offset these negative effects.Technology segmentIn this segment, sales rose to 2.4 billion euros (previous year: 2.2 billion euros), while EBIT amounted to 60.3 million euros (previous year: 84.6 million euros). In Germany, the used machinery business and workshop capacity utilisation were particularly robust. At the Austrian subsidiary RWA, which has since been sold, however, weaker demand and write-downs on inventories led to a weaker performance.Global Produce segmentFollowing the cyclonic year of 2023, the Global Produce segment returned to profitability in 2024. Revenue rose by 5.4 percent to 925.8 million euros (previous year: 878.6 million euros), while EBIT improved to 17.7 million euros (previous year: minus 15.1 million euros).Construction segmentThe ongoing weakness in residential construction, supply bottlenecks and margin pressure led to a decline in revenue to €1.8 billion (previous year: €2.0 billion). EBIT fell to minus 80.9 million euros (previous year: 6.6 million euros). Process optimisations and cost reductions partially offset the effects of the difficult market situation and will be continued consistently.Weiter zum vollständigen Artikel bei BayWa AG (vink. NA) Weiter zum vollständigen Artikel bei BayWa AG (vink. NA)