EQS-News

BayWa AG expects earnings to improve in the financial year 2024

EQS-News: BayWa AG / Key word(s): Annual Results BayWa AG expects earnings to improve in the financial year 2024 (news with additional features) 28.03.2024 / 10:30 CET/CEST The issuer is solely responsible for the content of this announcement. Number: 01224-PIU05 | Date 28 March 2024

BayWa AG expects earnings to improve in the financial year 2024

• BayWa AG closes the financial year 2023 with operating earnings of €304.0 million, just below the forecast for the year.
• The rapid rise in interest rates is having a negative effect on earnings across all business divisions.
• After interest and tax, the consolidated net loss for the year stands at €93.4 million, compared to a net profit of €239.5 million in the previous year.
• With “Strategy 2030”, CEO Marcus Pöllinger aims to boost the Group’s profitability in the long term and return BayWa to positive territory in 2024.

 

Munich, 28 March 2024 – After years of strong growth, the macroeconomic environment changed massively for BayWa AG in 2023, as reflected in the balance sheet for the most recent financial year. Consolidated revenues totalled €23.9 billion in the financial year 2023 (2022: €27.1 billion). At €304.0 million (2022: €504.1 million), operating earnings before interest and tax (EBIT) were down on the previous year’s exceptional results, as expected. The Group therefore only fell just short of its annual forecast of €320 to €370 million. Although BayWa succeeded in increasing EBIT by 14% compared to 2021, before the start of the war against Ukraine, the rapid rise in interest rates had a negative impact on all business divisions and put pressure on the internationally active portfolio company’s earnings. After deducting interest and tax, BayWa closed the past financial year with a loss of €93.4 million, down €332.9 million year on year.

“We are using 2024 for consolidation,” says Marcus Pöllinger, Chief Executive Officer of BayWa AG. “To this end, we are currently looking at each of our 500-plus Group companies and defining areas for growth or optimisation, as well as business areas that BayWa intends to divest. Going forward, each entity must be profitable in its own right. By rolling out our ‘Strategy 2030’, we will increase BayWa’s profitability and reduce our costs across all business divisions and administrative units. This will enable us to move the equity ratio towards 20% in the medium term and continue to strengthen our crisis resilience. The Board of Management’s goal is to return BayWa to profitability by 2024.”