DJ EQS-News: After the first quarter: BayWa AG expects significantly more dynamic business in 2024

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EQS-News: BayWa AG / Key word(s): Quarterly / Interim Statement/Quarter Results
After the first quarter: BayWa AG expects significantly more dynamic business in 2024 (news with additional features)
2024-05-08 / 07:33 CET/CEST
The issuer is solely responsible for the content of this announcement.
Number: 01724-PIU07 | Date 8 May 2024
After the first quarter: BayWa AG expects significantly more dynamic business in 2024
. Revenue and result negative in the first quarter of 2024 as is typical for the season
. Board of Management confirms full-year guidance, Strategy 2030 measures take effect
. Mild weather conditions supporting development in the agriculture business unit, energy and construction
business units affected by poor market conditions

Munich, 8 May 2024 - After a seasonally typical start to 2024, BayWa AG expects business development to be much more
dynamic in the coming months. With revenue totalling EUR5.2 billion (Q1/2023: EUR6.3 billion), earnings before interest and
taxes (EBIT) amounted to minus EUR61.3 million in the first quarter (Q1/2023: EUR91.8 million).
"It's clear to see after the first three months of the year that we are on the right track," said BayWa CEO Marcus
Pöllinger. "Many of our Strategy 2030 measures are being successfully rolled-out in our Group's business sectors and
Group companies. Inventories and capital tied-up have already been reduced noticeably, for example in the Agri Trade &
Service Segment: Compared to previous years, we have reduced product levels by 45%, but have retained our capacity to
deliver, as we have streamlined our handling processes and are supplying the agricultural sector 'just in time'. And
this is why I am very confident about the rest of the financial year."
The BayWa Board of Management confirms its guidance for 2024. The target corridor for BayWa AG's EBIT is between
EUR365 million and EUR385 million.
Renewable Energies: BayWa planning large-scale project sales in the second half of the year
BayWa AG's performance in the first quarter of 2024 was driven by developments in the Renewable Energies Segment: While
prices for solar modules continued to fall and weighed on trading margins, project rights with a total output of around
230 megawatts (MW) were primarily sold in the solar park and wind farm project business. BayWa expects further
transactions on a substantially larger scale in the second half of the year. These will make a significant contribution
to the development of earnings.
The agriculture business unit was shaped by various developments in the first three months of 2024. The Agricultural
Equipment Segment was bolstered by the early start to the season and unwavering investment appetite in agriculture,
enabling it to exceed the record result of the same quarter in the previous year. The Agri Trade & Service and Cefetra
Group Segments also developed positively. In the Global Produce Segment, the ongoing apple harvest in New Zealand is
pointing to high quality and a successful sales season.
The negative development in the Construction Segment reflects weak demand for construction services in Germany.
Individual segment performance
Renewable Energies Segment
The Renewable Energies Segment recorded revenue of EUR904.2 million in the first quarter of 2024 (Q1/2023: EUR1.5 billion)
and EBIT of minus EUR65.2 million (Q1/2023: EUR53.0 million). This significant decline is due to ongoing weak demand and
the extreme drop in prices for solar modules. In the project business, BayWa primarily sold project rights with a total
output of 230 MW by the end of March. Further project sales (totalling 950 MW) and the sale of project rights (1.2 GW)
are planned by the end of the year.
Energy Segment
With revenue of EUR577.2 million (Q1/2023: EUR633.2 million), EBIT in the Energy Segment amounted to minus EUR1.6 million and
was therefore down on the previous year, as expected (Q1/2023: EUR4.5 million). Mild winter conditions resulted in lower
demand for heating products. Many consumers had already stocked up on heating oil at the end of 2023 due to the CO[2]
price increase in January. In the wood pellets trade, prices were down 30% against previous year levels, impacting
margins negatively. BayWa is expecting sales volumes to rise in the coming months given the current price levels and
stocks in boiler rooms running low.
Cefetra Group Segment
The Cefetra Group Segment got off to a good start to the year with revenue of EUR1.3 billion (Q1/2023: EUR1.4 billion) and
EBIT of EUR14.9 million (Q1/2023: EUR17.1 million). Upheaval on the international agricultural exchanges has largely
subsided. Trade in grain and oilseed meal was almost on a par with the previous year. Food ingredients business, which
includes products such as nuts and legumes, saw weaker development in the first quarter of 2024. In addition to
declining demand, higher packaging costs had a negative impact on the business. BayWa expects the segment's
above-average performance to continue over the remainder of the year.
Agri Trade & Service Segment
The Agri Trade & Service Segment concluded the first quarter of 2024 with revenue of EUR1.2 billion (Q1/2023:
EUR1.5 billion) and EBIT of EUR18.1 million (Q1/2023: EUR31.0 million). There was a significant increase in demand for
operating resources as a result of the early start to the agricultural season caused by the weather. BayWa expects this
positive trend to continue over the course of the year, especially with regard to more efficient handling and sales
processes for fertilizers and seeds, which will be rolled-out in other product areas. Sales of agricultural products in
the first quarter were slightly up on the previous year.
Agricultural Equipment Segment
The Agricultural Equipment Segment is continuing seamlessly from the record year 2023. Revenue rose to EUR592.3 million
in the first quarter of 2024 (Q1/2023: EUR539.9 million) and EBIT to EUR24.0 million (Q1/2023: EUR22.4 million). Farmers
continue to invest heavily in machinery and technical equipment. The leading trade fair Agritechnica, which took place
again in November 2023 for the first time since the coronavirus pandemic, provided positive impetus and created a high
order backlog for BayWa. In addition, BayWa workshops are very well booked given the early start to the season. The
company expects this dynamic development to continue in the coming months.
Global Produce Segment
In the Global Produce Segment, revenue after the first three months of the current financial year totalled
EUR269.2 million (Q1/2023: EUR257.1 million), while EBIT amounted to minus EUR9.9 million (Q1/2023: minus EUR12.6 million). In
the German pome fruit business, the sale of the 2023 apple harvest will continue until early summer. Prices are high,
as fewer apples were harvested than in the previous year. This also benefits the export business of BayWa subsidiary T&
G in New Zealand, for which Europe is an important sales market. The sales of tropical fruits, such as mangoes and
avocados, fell short of expectations in the first quarter of 2024 due to the weather conditions.
Construction Segment
The Construction Segment began 2024 in line with expectations with revenue of EUR363.7 million (Q1/2023: EUR414.4 million)
and EBIT of minus EUR21.5 million (Q1/2023: minus EUR9.1 million). High construction prices and continually high mortgage
rates have brought residential construction to a virtual standstill. BayWa expects positive impetus from civil
engineering and public sector construction as well as from the business of BayWa Bau Projekt GmbH, which sold
additional residential units by the end of March. In addition, the cost-cutting measures already initiated will have a
positive impact on earnings in the Building Materials Segment over the course of the year.

More information is available at www.baywa.com/press.
Print-ready press photos, footage material and video statements can be found here.
BayWa AG on LinkedIn: www.linkedin.com/company/baywa
The LinkedIn profile of BayWa Investor Relations can be viewed here.

Press contact:
BayWa AG
Stefan Bartels
Tel.: +49 151 65537317
E-Mail: stefan.bartels@baywa.de

About BayWa AG
BayWa AG is a globally active group with the business units energy, agriculture and building materials. As a global
player with revenue of EUR23.9 billion in 2023, it develops innovative and sustainable solutions for the basic human
needs of food, energy, heating, mobility, construction and housing. The company has around 25,000 employees in over 50
countries. The headquarters of the parent company, which was founded in 1923 and celebrated its 100th anniversary in
2023, are in Munich. BayWa AG's roots lie in agricultural cooperative trading, and its mission is to provide rural
regions with everything they require for agriculture. More information is available at www.baywa.com/press.
Contact:
Antje Krieger, BayWa AG, Deputy Head of Corporate Communications,
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 12-36 80,
e-mail: antje.krieger@baywa.de
Additional features:
File: EN_Q1_2024_Factsheet
File: BayWa_AG_headquarter_Munich_Copyright_BayWaAG
2024-05-08 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Archive at www.eqs-news.com  
Language:     English 
Company:      BayWa AG 

Arabellastraße 4
81925 Munich
Germany
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May 08, 2024 01:34 ET (05:34 GMT)

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Phone:        +49 (0)89/ 9222-3691 
Fax:          +49 (0)89/ 9212-3680 
E-mail:       prcc@baywa.de 
Internet:     www.baywa.com 
ISIN:         DE0005194062, DE0005194005, 
WKN:          519406, 519400, 
Indices:      SDAX 
Listed:       Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, 

Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange
EQS News ID: 1898137

End of News EQS News Service
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1898137 2024-05-08 CET/CEST

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May 08, 2024 01:34 ET (05:34 GMT)