BayWa (BYW) H2 2023 earnings summary

Executive summary

• Revenue fell 11.5% to €23,948.2m and EBIT fell 39.7% to €304.0m as energy and agricultural commodity prices normalised from 2022 levels.

• Net loss was €93.4m, with higher net interest expense and a 147.7% tax rate contributing; EPS was -€2.84 versus €4.36 in 2022.

• The 2023 dividend was not proposed; portfolio, cost and working-capital actions aim to improve profitability and reduce debt.

Financial highlights

• Revenue was €23,948.2m, down 11.5%; EBITDA was €587.3m, down 31.6%; and EBIT was €304.0m, down 39.7%.

• EBT was -€37.7m versus €319.6m in 2022; net loss was €93.4m versus net income of €239.5m.

• Net interest expense rose €157.2m to €341.7m, primarily as interest expense increased to €362.0m.

• Operating cash flow improved to €455.0m from -€337.2m, supported by a €444.9m release from inventories, receivables and other operating assets.

Outlook and guidance

• 2024 EBIT guidance is €365–385m; interest expense is forecast at €300–310m and EBT at €65–75m.

• 2024 EBIT is expected to improve significantly versus 2023; most segments are forecast to improve, though Agricultural Equipment EBIT is expected to decline significantly.

• The sustainable EBIT target of €470–520m is set for end-2026, one year later than previously planned, reflecting weak construction and delayed solar-trading divestment.

• Solar Trade sale efforts were paused in an unfavourable market; the process may restart by end-2024 if conditions recover.

• Ten measures through 2026 include restructuring, selected asset sales, inventory optimisation and debt reduction.