BayWa AG generated above-average earnings before interest and tax (EBIT) in the first quarter of the current financial year. Despite falling year on year to €91.8 million on the heels of an exceptional first quarter of 2022 (Q1/2022: €144.9 million), EBIT still exceeded the comparable figure for other previous years by a clear margin. At €6.3 billion (Q1/2022: €6.3 billion), revenues were on par with the previous year in the first quarter of 2023.
Marcus Pöllinger, BayWa CEO: “All in all, a strong first quarter and a good starting point for further business performance this year. The volatile market environment of one year ago, in which we faced a particularly forceful call to action as a provider of essential goods and services and more than delivered on our promises to our customers, has since settled down somewhat. By contrast, the global trends that we at BayWa serve through our business divisions remain intact, as the strong figures for the first quarter of this year also show.”
Agri Trade and Service Segment
In the Agri Trade and Service Segment, revenues increased to €1.5 billion in the first quarter of 2023 (Q1/2022: €1.4 billion). EBIT stood at €31.0 million (Q1/2022: €58.7 million). The result was buoyed by above-average earnings margins in domestic grain trading but was also weighed down by farmers’ reluctance to buy agricultural inputs. BayWa anticipates rising sales in the months ahead, especially for seed and crop protection products, once the weather permits farmers to make such purchases.
Agricultural Equipment Segment
The Agricultural Equipment Segment started the new year with a high order backlog, as reflected in new record figures. Revenues stood at €539.9 million in the first quarter of 2023 (Q1/2022: €476.0 million), with EBIT of €22.4 million (Q1/2022: €11.3 million). Farmers continue to have a healthy investment appetite. The number of tractors sold is on par with the previous year, and both capacity utilization and productivity at BayWa’s workshops remain high. BayWa expects this trend to continue in the months ahead.
Global Produce Segment
Inclement weather in various fruit-growing regions had an effect on results and earnings in the international fruit business. In combination with revenues of €257.1 million (Q1/2022: €224.3 million), the Global Produce Segment recorded EBIT of minus €12.6 million (Q1/2022: €7.3 million). While Cyclone Gabrielle damaged a portion of the apple harvest in New Zealand, key procurement regions for avocados and mangoes also reported lower harvest volumes and quality issues. In domestic fruit trading, discount campaigns among retailers stimulated sales of dessert pome fruit. BayWa expects buying to stabilize over the course of the year. However, the overall conditions should remain challenging.
Click here to view the company financials.
For more information:
Tel.: +49 89 9222-3692