BAYWA AG Investor Relations
Newsletter2023
Financial Year
Positives and negatives to take from financial year 2023
Board of Management initiates Group-wide debt reduction and portfolio optimisation
With revenue of €23.9 billion (2022: €27.1 billion) and EBIT of €304.0 million (2022: €504.1 million), the BayWa Group's ope-rating performance fell short of the figu-res recorded in the exceptional year of 2022, as expected.
The original EBIT forecast for the financial year of €320 million to €370 million was narrowly missed. While the Agricultural Equipment and Cefetra Group Segments reached new heights, the Global Produce and Building Materials Segments recor-ded sharp declines in EBIT. The Buildings Materials Segment faced a drastic slump in German residential construction, while the consequences of a tropical storm im-pacted the Global Produce Segment. In addition, trade in solar modules in the Renewable Energies Segment suffered from the rapid fall in solar module prices.
Taking into account the unprecedented market factors, operating performance is satisfactory overall. The same cannot be said of earnings after interest and tax, though. High interest expenses and an unexpectedly high tax rate led to a negati-ve consolidated result.
A significant improvement in earnings is expected for the financial year 2024. In addition to operational growth, profitabili-ty is set to be improved sustainably at all levels through cost-cutting and optimisa-tion measures in inventory management in particular.
"The financial year 2023 shows the strengths and weaknesses of our busi-ness model", says Marcus Pöllinger, Chief Executive Officer of BayWa AG. "Now we need to make the right adjustments in or-der to become profitable again."
Overview
• Price-related decline in revenue
• EBIT for financial year 2023 just below the forecast
• Consolidated net income burdened by high interest and tax rate
• Suspension of dividend planned
• Strategy 2030 adopted
• Significant improvement in earnings expected in financial year 2024
Key financials of the BayWa Group
Income Statement
Consolidated net result
in EUR million | ||||
Energy1 | 57.5 | 50.2 | 11.6 | 92.3 |
Renewable Energies | 53.0 | 45.4 | 7.4 | 88.0 |
Energy | 4.5 | 4.8 | 4.2 | 4.3 |
Agriculture1 | 57.9 | 54.0 | 33.1 | 15.5 |
Cefetra Group | 17.1 | 13.2 | 20.3 | 14.0 |
Agri Trade & Service | 31.0 | 8.8 | 6.7 | -20.1 |
Agricultural Equipment | 22.4 | 21.5 | 8.7 | 32.0 |
Global Produce | -12.6 | 10.5 | -2.6 | -10.4 |
Building Materials1 | -9.1 | 9.8 | 5.1 | 0.8 |
Innovation & Digitalisation | -1.1 | -2.1 | -1.4 | -6.2 |
Other Activities | -13.4 | -16.8 | -20.7 | -13.0 |
Total | 91.8 | 95.1 | 27.7 | 89.4 |
Earnings per share (EPS) | ||||
in Euro |
in EUR million
EBIT per business unit and segment |
Revenues
EBITDA
EBIT
EBT
Q1 2023Q2 2023Q3 2023Q4 2023 | FY 2023 | FY 2022 | Change |
6,280.46,278.85,632.65,788.3 | 23,948.2 | 27,061.8 | -11.5% |
587.3 | 858.8 | -31.6% | |
304.0 | 504.1 | -39.7% | |
-37.7 | 319.6 | > -100% | |
-93.4 | 239.5 | > -100% | |
FY 2023 | FY 2022 | Change | |
211.6 | 292.7 | -27.7% | |
193.8 | 239.1 | -18.9% | |
17.8 | 53.6 | -66.8% | |
160.5 | 255.5 | -37.2% | |
64.6 | 59.5 | 8.6% | |
26.4 | 104.7 | -74.8% | |
84.6 | 70.2 | 20.5% | |
-15.1 | 21.1 | > -100% | |
6.6 | 70.4 | -90.6% | |
-10.8 | -11.4 | 5.3% | |
-63.9 | -103.1 | 38.0% | |
304.0 | 504.1 | -39.7% |
158.8
163.3
91.8
14.6
10.4
12.8
95.1
18.1
-40.2-76.4
-56.7-13.7
27.789.4
97.7167.5
Q1 2023Q2 2023Q3 2023Q4 2023
Share of revenues
Share of EBIT (operational) -
per business unit
per business unit
in % as at 31/12/2023
in % as at 31/12/2023
1 Business unit
Capital markets
Review
The stock market year 2023 was characterised by substan-tial price fluctuations on both the equity and bond markets. In addition to the geopolitical crises, the interest rate and monetary policy of central banks, inflationary trends and the associated fears about economic development and recession were the main causes of high volatility on the capital markets.
Despite the escalation of the Middle East conflict and Fed chairman Jerome Powell's statement that interest rates are likely to remain "higher for longer", the equities market em-barked on an end-of-year rally from November onwards. The trend was fuelled by lower inflation figures in Europe, with many indices ending the year with growth of 20% and more.
The DAX closed at 16,751 points, up 20.3%. In the United States, tech stocks made the most gains over the course of the year. The S&P 500 index rose by 25%, and the Nasdaq Composite technology index by as much as 55%. The Magni-ficent Seven - the seven major US tech stocks - were key drivers in this development.
Small and mid caps, on the other hand, were the underper-formers of stock market year 2023. Interest in many small stocks in Europe was subdued due to the unstable economic situation. Many professional investors believe that the small-and mid-cap sector has good growth prospects for the cur-rent stock market year 2024. Small caps are valued lower than blue chips and therefore have great catch-up potential.
BayWa share 2024: Price performance compared with SDAXCurrent analyst recommendations
BayWa share
BayWa
-18.4 %
SDAX
2.1 %
25.55 €
Closing Price on 26/03/2024
14,250.02* Closing Price on 26/03/2024
* Points
Baader Bank | Buy |
DZ Bank | Hold |
Kepler Cheuvreux | Hold |
Metzler | Buy |
Warburg Research | Buy |
March 2024
March 2024
January 2024
November 2023
November 2023
Closing price on 26/03/2024
Closing price on 31/12/2023 52W high
52W low
25.55 €31.30 €44.00 €29.25 €
Financial Calendar 2024
28 March 2024
BayWa AG Investor Relations Arabellastr. 4 81925 Munich Germany
8 May 2024
11 June 2024
Follow us on LinkedIn #BayWaIR
T +49 89 9222-0
F +49 89 9212-3887
8 August 2024
14 November 2024
BayWa Group on the internet:www.baywa.com/ investor_relations
Consolidated Financial Statements 2023: Analysts' Conference Call | 2.00 pm |
Interim Report Q1 2024: Analysts' Conference Call | 2.00 pm |
Annual General Meeting (in person) | 10.00 am |
Half-Year Report 2024: Analysts' Conference Call | 8.30 am |
Interim Report Q3 2024: Analysts' Conference Call | 8.30 am |
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Disclaimer
BayWa AG published this content on 27 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2024 06:33:07 UTC.
