DGAP-News

BayWa remains on track for success: third-quarter figures reaffirm higher earnings forecast for 2021

DGAP-News: BayWa AG / Key word(s): Quarterly / Interim Statement BayWa remains on track for success: third-quarter figures reaffirm higher earnings forecast for 2021 11.11.2021 / 10:30 The issuer is solely responsible for the content of this announcement. BayWa remains on track for success: third-quarter figures reaffirm higher earnings forecast for 2021

BayWa AG is on track to achieve its highest earnings yet in its nearly 100 years of existence as a company. In the third quarter, BayWa increased its revenues to €14.3 billion (Q1-3/2020: €12.2 billion). Earnings before interest and tax (EBIT) jumped by around 87% to €191.7 million (Q1-3/2020: €102.7 million). Business was highly successful, particularly in the Renewable Energies business unit and in the Agriculture and Building Materials Segments.

"We succeeded in taking advantage of the largely favourable market environment while also deflecting the disruptions in global supply chains, thanks to our strategy and positioning," says Prof. Klaus Josef Lutz, Chief Executive Officer of BayWa AG. Lutz expects numerous planned project sales in the Renewable Energies business unit and the continuation of dynamic development in the Agriculture and Building Materials Segments to act as the primary sources of sufficient tailwind for a year-end rally. "We are currently reaping the benefits of what we have been sowing since 2008: our strategy of internationalising agricultural trade, investing in renewable energies and, most recently, restructuring our agricultural business in northern and eastern Germany - all that is now paying off."

Flourishing trade in photovoltaic (PV) components was the main factor behind another strong quarter in the Energy Segment, making it possible to more than compensate for the anticipated decline in business in the Conventional Energy business unit. High prices and increased volatility on international grain exchanges bolstered Cefetra Group's trade activities. The business unit's German agricultural trade activities also took advantage of the rise in agricultural commodity prices. In the first three quarters, the Agricultural Equipment business unit slightly outperformed the same period in the previous year, which also saw strong performance. Although the weather-related obstacles and the problems caused by the coronavirus pandemic continued to have an impact on international fruit trading, BayWa Global Produce GmbH still expects the annual result to match the level achieved in 2020. Thanks to higher trade margins and a nearly unencumbered ability to deliver goods and services, earnings in the Building Materials Segment once again increased significantly. BayWa expects a substantial rise in operating earnings for 2021, provided the weather continues to be seasonal in the remaining weeks of the year.