BayWa AG

Latest Results (26.05.2025):

In the third quarter of 2024, BayWa AG experienced mixed financial performance, with strong results in the Agricultural Equipment Segment offset by significant challenges in the Renewable Energies Segment. Overall consolidated EBIT was negatively impacted due to market struggles in photovoltaic component trading, project delays, and declining electricity prices affecting energy trading revenues.

Agricultural Equipment Segment Strong Growth

The Agricultural Equipment Segment delivered robust performance, increasing revenues to €1.8 billion and operating EBIT to €68.0 million, up from €1.7 billion and €52.6 million respectively in the previous year. This growth was driven by a high order backlog and favorable investment incentives from the German government's Growth Opportunities Act.

Challenges in Renewable Energies Segment

The Renewable Energies Segment faced continued difficulties, with revenues dropping to €2.9 billion from €4.3 billion year-on-year and EBIT falling to minus €164.8 million. The decline was primarily due to overcapacity in the photovoltaic market, reduced solar module prices, project delays, and increased restructuring costs for BayWa r.e. AG.

Agri Trade & Service Segment Under Pressure

The Agri Trade & Service Segment saw a decrease in revenues to €3.6 billion from €3.9 billion and operating income fell to €16.4 million compared to €46.5 million the previous year. Negative factors included adverse weather conditions, a below-average grain harvest in Germany, lower agricultural product prices, and temporary hesitancy from business partners to deliver grain.

Construction and Energy Segments Face Declines

The Construction Segment struggled with revenues of €1.4 billion and a negative EBIT of minus €9.5 million, impacted by the ongoing residential construction market crisis. Similarly, the Energy Segment's revenues decreased to €1.9 billion, with EBIT dropping to minus €0.2 million due to reduced demand for heating energy sources and uncertainty surrounding the German Buildings Energy Act.

Performance of Significant Subsidiaries

The Cefetra Group Segment reported revenues of €3.6 billion and an EBIT of €19.6 million, benefiting from stable trade in standard agricultural products. The Global Produce Segment bounced back with revenues of €781.1 million and a positive result of €1.1 million, aided by favorable apple prices in both hemispheres.