Agriculture - Baywa retracts forecast - Half-yearly report postponed
The Baywa Corporation, which has debts in the billions, has withdrawn its forecast for the current year. Due to the ongoing restructuring report, the board is not able to provide a reliable, concrete new forecast for the operational earnings before interest and taxes for 2024 at this time, the company announced.
At the same time, Baywa, with its around 24,000 employees, provisionally released figures for the first half of the year, but these numbers are subject to the ongoing review of assets. Therefore, the publication of the half-year report, which was originally scheduled for August 8, has been postponed to September 27, according to Baywa's statement.
The company, which emerged from the cooperative movement, has short-term and long-term debts of approximately 5.6 billion Euro. Due to the rapid increase in interest rates, the financial burden of the company has tripled from 2021 to 2023 to 362 million Euro. Ten days ago, the company disclosed in a mandatory filing for the stock exchange its "strained" financial situation and the appointment of a restructuring advisor.
Concerns were also raised in the financial sector: Baywa is of significant importance for food supply in South Germany. The company is not only a supplier of seeds, fertilizers, and agricultural machinery, but also buys the harvest from many farmers. In addition, many farmers are shareholders of the company.
- Despite the challenging financial situation, Baywa Corporation, with its roots in the cooperative movement, continues to contribute significantly to the Agriculture sector in Bavaria and Munich, providing essential foods like seeds, fertilizers, and agricultural machinery.
- The recent prognosis for Baywa's operational earnings before interest and taxes for 2024 remains uncertain due to the corporation's debts in the billions and the ongoing restructuring process, as highlighted in the quarterly numbers.
- Baywa's temporary halt on publishing quarterly reports, originally scheduled for August 8, has been delayed until September 27, due to the need to review assets and the company's current economic situation.
- The financial stress faced by Baywa has raised concerns among stakeholders, as its withdrawal from providing forecasts and the need for a restructuring advisor may impact not only the company's future but also the agricultural economy and food supply in the region, with many farmers being shareholders.
