Dr. Kalliwoda Research GmbH

BayWa AG.: Buy recommendation

BayWa in Bullet Points: Date of publishing 22th May 2023.
BayWa Group reported a slight increase in Q1 2023 revenues year on year to €6.3 billion, with a decrease in EBIT to €91.8 million one off factors of 2022. Q1 2023 EBIT is nevertheless an above-average result. The Renewable Energies and Agricultural Equipment Segments showed strong demand, while the Global Produce Segment saw a decline in earnings due to Cyclone Gabrielle.

BayWa Group's total assets rose 3.8% to €13,471.0 million, mainly due to seasonal factors, higher prepayments, and assets under construction. Equity increased by 0.5% to €1,917.7 million, and current liabilities rose by 8.9%.

Driven by some segments but offset by decreases in others, resulting in a lower gross profit compared to the previous year. The Group's earnings before interest and tax (EBIT) also decreased, while personnel and operating expenses increased, and net interest fell, resulting in a positive consolidated net result of €10.4 million, which is lower than the same period last year.

BayWa Mobility Solutions and Vattenfall have agreed to a master agreement to construct fast-charging infrastructure across Germany.

In BayWa Group's Renewable Energies Segment had a good start, while the Energy Segment saw a decline in sales volumes. Cefetra Group saw balanced supply and demand and Agri Trade and Service segment had mixed development, while the Global Produce segment faced negative effects due to weather conditions. The Building Materials Segment had negative EBIT result typical of the season, but is expected to benefit from rising demand for materials used in energy-efficient modernization. The Innovation & Digitalisation Segment saw revenue growth, while Other Activities had a negative EBIT but showed improvement.

We reiterate our buy-recommendation with a fair value per share of €56.

Dr. Norbert Kalliwoda, geschäftsführender Gesellschafter, Managing Owner, Dipl.-Kfm., Dipl.-Hdl. CEFA-Analyst (Certified European Financial Analyst, DVFA), 60325 Frankfurt Westend und 64839 Münster bei Darmstadt

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