BayWa AG Optimistic About Business Prospects for 2024 Despite First Quarter Downturn

BayWa AG, a Munich-based global entity, reported a subdued start to 2024, with first-quarter revenues at €5.2 billion down from €6.3 billion the previous year, and earnings before interest and taxes (EBIT) showing a loss of €61.3 million. However, CEO Marcus Pöllinger remains positive, citing effective implementation of the 'Strategy 2030' initiatives which have optimized inventory and capital use, notably in the Agricultural Trade & Service segment.

Despite the initial losses, the Board of Management upholds its full-year EBIT forecast between €365 million and €385 million, buoyed by expected substantial transactions in renewable energy projects and steady growth in the agriculture sector driven by mild weather conditions. Particularly, the Agricultural Equipment segment experienced an early and strong start, surpassing last year's record results.

While the Renewable Energies segment faced challenges with declining solar module prices impacting margins, the company anticipates rebounding with major project sales slated for the second half of the year. On the other hand, adverse market conditions dampened the construction sector's performance.

Cefetra Group and Agri Trade & Service segments continue to demonstrate resilience, with positive signs in grain and oilseed meal trade stabilizing post international market upheavals. BayWa remains committed to improving efficiency across its operations, which is expected to contribute positively to its financial performance in upcoming quarters.