BayWa Reports €1.6 Billion Loss – Restructuring Plan Remains Intact
Share Price: €19.50 | FY2024 Loss: €1.6 billion | Capital Increase and Strategic Asset Sales Planned
German conglomerate BayWa AG, a key player in agriculture and food supply in southern and eastern Germany, has announced a net loss of €1.6 billion for the past fiscal year. Despite the heavy setback, the company stated in a regulatory disclosure that its restructuring plan through 2028 remains unaffected.
🔧 Restructuring Strategy
- Planned capital increase of approx. €200 million in the coming months, with 75% underwritten by anchor shareholders.
- The sale of most foreign subsidiaries is to streamline operations.
- Target: Restore positive group-level equity by the end of 2028.
📉 Background
BayWa significantly expanded in recent years, particularly in renewable energy projects involving wind and solar parks. This strategy overstretched the company’s financial capacity, contributing to the current equity erosion. However, BayWa maintains that the deterioration in equity will not impact the financial feasibility of its restructuring roadmap.
📊 Outlook
Despite the record loss, BayWa remains committed to its turnaround strategy. The planned capital injection and refocus on core businesses are expected to stabilise the group. So far, market reaction remains cautious – the stock is currently trading at €19.50.
