With very successful operations in the third quarter, BayWa AG seamlessly built on its strong performance in the first half of the year. The company posted revenues of €20.1 billion after nine months (Q1–3/2021: €14.1 billion). Earnings before interest and tax (EBIT) increased to €459.8 million in the reporting period (Q1–3/2021: €191.7 million).
This means that BayWa exceeded its previously raised full-year earnings forecast for 2022 of €400 million to €450 million in the first nine months. The company is looking ahead to the final quarter with confidence and now expects earnings of €475 million to €525 million in 2022. The Renewable Energies Segment will be one of the main earnings drivers.
“In this year’s turbulent market environment, reliability of supply is our customers’ top priority. Accordingly, we are seeing high demand for heat energy carriers such as heating oil and wood pellets, for agricultural inputs and equipment, as well as for building materials to be used in renovation, for example,” says Prof. Klaus Josef Lutz, Chief Executive Officer of BayWa. “Our customers are benefiting with virtually no restrictions from BayWa’s strengths: our forward-looking inventory and risk management, our broad supplier network and our strong ability to deliver.”
Global Produce Segment
At €703.8 million, revenues in the Global Produce Segment were slightly below the previous year after three quarters (Q1–3/2021: €709.3 million). EBIT amounted to €18.3 million (Q1–3/2021: €22.7 million). Earnings were pushed down by higher energy and logistics costs, disruptions in international supply chains and muted consumer spending, especially on exotic fruits and premium products, as a result of inflation. On account of the multiple challenges affecting conditions in international fruit and vegetable trading, BayWa expects overall earnings for 2022 to be below the previous year’s level.
Agricultural segment
After three quarters, the Agriculture segment recorded sales of EUR 4.4 billion (previous year: EUR 3.1 billion) and a leap in earnings to EUR 152.3 million (previous year: EUR 34.0 million). In addition to the optimization of internal sales and trading processes, the market environment made a positive contribution to the result: In the first half of the year, BayWa benefited from the invoicing of existing contracts from the 2021 harvest to expand significantly from this year's harvest. Usually, a large part of this will affect earnings in 2023. BayWa noted that farmers were more willing to stockpile supplies for the coming season, especially fertiliser.
For more information:
Antje Krieger
BayWay
Tel: +49 89 9222-3692
Email: antje.krieger@baywa.de
www.baywa.com