BayWa AG Projects Earnings Recovery in FY 2024 Following a Challenging Year

BayWa AG anticipates an earnings improvement in the 2024 financial year after experiencing a downturn in 2023. The company reported operating earnings of €304.0 million for 2023, slightly missing the forecasted range of €320 to €370 million. The rapid increase in interest rates negatively impacted earnings across all business divisions, resulting in a consolidated net loss of €93.4 million for the year, a significant decline from the previous year's net profit of €239.5 million.

CEO Marcus Pöllinger introduced "Strategy 2030" aiming to enhance long-term profitability and steer BayWa back into positive territory in 2024. This strategy involves a thorough review of over 500 group companies to identify growth, optimization opportunities, and divestiture targets, ensuring profitability at the individual entity level.

Despite challenges, key sectors showed resilience and growth potential. The Agricultural Equipment and Cefetra Group segments registered improvement over the prior year, while other divisions like Renewable Energies and Global Produce faced headwinds, including weak demand in solar module business and the aftermath of Cyclone Gabrielle, respectively. The drastic downturn in Germany's residential construction also affected the Building Materials Segment.

BayWa aims for an earnings target between €470 and €520 million by the end of 2026, with focus areas in international grain trade, specialty products, and renewable energies. The company is committed to bolstering its crisis resilience and strengthening profitability through "Strategy 2030".