MUNICH (dpa-AFX) - The agricultural trader and conglomerate Baywa does not intend to pay its shareholders a dividend for the past year. While the operating business was satisfactory, interest and taxes had a significant negative impact on the consolidated result, the company announced in Munich on Thursday evening. The Management Board has therefore decided to propose to the Annual General Meeting that the dividend payment be suspended. This is intended to strengthen the Group's equity base. The share price fell on Friday in response to the news from the previous evening.

The share lost up to 7 percent shortly after the start of trading, but ultimately limited the losses to around 3.5 percent. Nevertheless, the downward trend of recent months has continued: since the beginning of the year, the SDax-listed share has lost a good 11%, and in the past twelve months even around 30%.

Baywa had paid a regular dividend of €1.10 and a special dividend of 10 cents per share for 2022. It had already been expected that such a payout could not be expected for 2023. According to one trader, however, the market was expecting an average dividend of at least 44 cents for the past year.

Baywa's results have been under pressure in recent quarters due to lower prices for raw materials, operating supplies and building materials. In addition, higher interest rates and high inflation dampened investment confidence and purchasing power. After nine months, the Munich-based company was even in the red. In November, however, CEO Marcus Pollinger expressed confidence for the final quarter, particularly in view of outstanding project sales in the alternative energy business.

Baywa employs over 24,000 people. While the company was once largely limited to agricultural trading, the renewable energy business is now a focal point alongside agricultural and building materials trading. Baywa's main shareholders are Raiffeisen companies. The business figures for 2023 are to be published as planned on March 28. In 2022, Baywa generated €27 billion in sales and €168 million in profit /lew/stw/nas/stk