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.”
Global produce segment
Following the impact of Cyclone Gabrielle which hit New Zealand in February of this year, the Global Produce Segment closed the reporting period with EBIT of minus €4.7 million (previous year: €18.3 million) and revenues of €749.7 million (previous year: €703.8 million). The tropical cyclone had a severe effect following the good start to the year in terms of volume and quality of the harvest. Additional costs were also incurred for clean-up efforts. Moreover, demand for premium fruit varieties and exotic fruits remains subdued in Europe in particular, with consumer reluctance driven by high inflation.
Performance in the fourth quarter will depend heavily on the marketing of the northern hemisphere harvest. The apple harvest was smaller in Germany this year due to adverse weather conditions, with a resulting price increase of up to 30%. BayWa expects increased demand for tropical fruits in the next few weeks as the run-up to Christmas approaches. However, EBIT in the Global Produce Segment for the year will depend to a large extent on the amount of compensation paid out for damage caused by Cyclone Gabrielle.
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For more information:
Anja Richter
BayWa AG
Arabellastraße 4
81925 Munich - Germany
Tel.: +49 89 9222-3696
Email: anja.richter@baywa.de