BayWa suspends 2024 profit forecast over ongoing restructuring
Adds preliminary earnings details, background in paragraphs 2-6
July 24 (Reuters) -German agricultural group BayWa BYWGnx.DE suspended its full-year profit forecast on Wednesday, citing an ongoing restructuring, and posted preliminary revenue of 10.7 billion euros ($11.60 billion) for the first half of the year.
The company said its preliminary earnings before interest, tax, depreciation and amortization stood at 149.5 million euros for the first half of 2024, less than half of the 322.1 million euros it earned in the same period last year.
The Munich-based trader of farming supplies and produce has been grappling with rising borrowing costs. Earlier in July, it commissioned an external probe into whether it can restructure its finances, referring to a "tense financing situation.”
BayWa said on Wednesday it continues to be in constructive talks with its financing partners, adding that it also has postponed publication of the final half-yearly results to September, citing impairment reviews.
A restructuring report is usually required by creditors and is a prerequisite for them to grant further loans or to extend them.
On Tuesday, Reuters reported that Swiss energy investor Energy Infrastructure Partners is in talks with BayWa to increase its stake in BayWa’s renewable energy unit to at least 70% to 80%.
($1 = 0.9228 euros)
Reporting by Utkarsh Shetti in Bengaluru
Editing by Chris Reese and Bill Berkrot
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
