EQS-News

Performance as expected in third quarter – BayWa confirms full-year guidance for 2023

EQS-News: BayWa AG / Key word(s): Quarterly / Interim Statement/9 Month figures Performance as expected in third quarter – BayWa confirms full-year guidance for 2023 (news with additional features) 09.11.2023 / 10:30 CET/CEST The issuer is solely responsible for the content of this announcement. Number: 05023-PIU14 | As at 9 November 2023

Performance as expected in third quarter – BayWa confirms full-year guidance for 2023

BayWa Group reaffirms its EBIT target of between €320 million and €370 million.

 

Despite some difficult general market conditions, the BayWa Group has achieved strong operating earnings for the first nine months of the financial year. Earnings before interest and tax (EBIT) amounted to €214.6 million at the end of the third quarter (previous year: €459.8 million). Revenues were down compared to the exceptional previous year, as expected, at €18.2 billion for the reporting period (previous year: €20.1 billion). “Significant price drops for many raw materials coupled with the high interest rates are creating difficult market conditions at present. However, as a diversified portfolio company and with targeted risk management in areas such as German agricultural business, we were able to take precautions and achieve strong operating earnings,” said Marcus Pöllinger, Chief Executive Officer of BayWa AG. “And I am confident as regards the fourth quarter due to the project sales still outstanding in the Renewable Energies Segment. I can therefore reconfirm our EBIT target of between €320 million and €370 million for 2023.”

Above average results for Agricultural Equipment and Cefetra Group Segments

Performance in the Renewable Energies Segment declined year on year in the third quarter, as expected, due to the differing cycles in sales of renewable energy projects within a year. Reasonable comparisons of project business can therefore only be made on a year-by-year basis. BayWa anticipates that the sale of solar parks and wind farms with total output of 175 MW and almost 800 MW in project rights in the final quarter will contribute to the expected rise in earnings. The uncertainties regarding fuel and heat carrier supply triggered by the war in Ukraine have largely subsided, which is reflected in the lower prices for many raw materials. Earnings in the Energy Segment therefore stabilised around the pre-Ukraine war level.