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View of a Baywa DIY store..aussiedlerbote.de
View of a Baywa DIY store..aussiedlerbote.de

Baywa in the red due to higher interest rates

Lower commodity prices and higher interest rates have had a negative impact on the business of agricultural trader and conglomerate Baywa. In the first nine months, sales only fell by a good nine percent to just under 18.2 billion euros. However, operating profit halved: before interest and taxes (EBIT) amounted to 214.6 million euros by the end of September, as the company announced in Munich on Thursday. Due to higher interest rates, the bottom line was a loss of almost 22 million euros, after a profit of 155 million euros a year earlier.

The management confirmed the annual forecast, according to which an operating profit of 320 to 370 million euros is to be achieved in 2023. CEO Marcus Pöllinger is confident about the final quarter, particularly in view of the outstanding project sales in the renewable energy business.

Despite the challenges in the agriculture sector due to lower commodity prices, Baywa continues to explore opportunities in the renewable energy sector for trade. The higher interest rates, however, have negatively impacted Baywa's overall energy business, affecting the balance between energy production and trade.

Source: www.dpa.com

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