Q3 figures reaffirm higher profit forecast for 2021

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DGAP-News: BayWa AG / Keyword (s): Quarterly / Interim statement
11.11.2021 / 10:30
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BayWa remains on track for success: Q3 figures reaffirm higher profit guidance for 2021

BayWa AG is on track to achieve its highest profits in almost 100 years of existence as a company. In the third quarter, BayWa increased its revenue to 14.3 billion euros (Q1-3 / 2020: 12.2 billion euros). Profit before interest and taxes (EBIT) jumped by around 87% to 191.7 million euros (Q1-3 / 2020: 102.7 million euros). The activity was very fruitful, in particular in the Renewable Energies business unit and in the Agriculture and Building Materials Divisions.

“Through our strategy and positioning, we have been able to take advantage of the largely favorable market environment while avoiding disruptions to global supply chains,” said Prof. Klaus Josef Lutz, Managing Director of BayWa AG . Lutz expects the strong planned sales of projects in the Renewable Energies business unit and continued dynamic development in the Agriculture and Building Materials segments to be the main sources of sufficient tailwind for a year-end rally. “We are currently reaping the fruits of what we have sown since 2008: our strategy of internationalizing agricultural trade, investing in renewable energies and, more recently, restructuring our agricultural activity in the north and east of Germany, all this is now bearing fruit.

The booming photovoltaic (PV) component business was the main driver behind a strong new quarter in the Energy segment, more than offsetting the anticipated decline in activity in the Conventional Energy business unit. High prices and increased volatility on international grain exchanges have supported the business activities of the Cefetra Group. The business unit’s agricultural trading activities in Germany also benefited from rising agricultural commodity prices. During the first three quarters, the Agricultural Equipment business unit slightly outperformed the same period of the previous year, which also performed well. Although weather-related hurdles and problems caused by the coronavirus pandemic continued to impact the international fruit trade, BayWa Global Produce GmbH still expects the annual result to match the level achieved in 2020. Thanks to higher business margins and an ability to deliver goods and services, the profits of the Building Materials segment once again increased significantly. BayWa expects a substantial increase in operating profits for 2021, provided the weather remains seasonal in the remaining weeks of the year.

Energy segment

The Energy segment recorded sales of 3.7 billion euros after the first nine months of the current fiscal year (Q1-3 / 2020: 2.7 billion euros). EBIT amounted to 80.1 million euros (Q1-3 / 2020: 48.0 million euros). With a 72% increase in total production year-over-year, trading in photovoltaic modules was very successful in the third quarter. CO2-optimized energy vectors also recorded gains in the Conventional Energy business unit, the BayWa subsidiary BayWa Mobility Solutions GmbH adding two new sites to its network of liquefied natural gas (LNG) stations and sales of wood pellets increased by 31% to be around 566,200 tonnes. In contrast, fuel oil and fuel oil sales fell.

Agricultural sector

Revenue for the Agriculture segment was € 9.0 billion at the end of the third quarter (Q1-3 / 2020: € 8.1 billion). EBIT amounted to € 111.4 million (Q1-3 / 2020: € 77.5 million). In commodity trading, the Cefetra Group business unit benefited from strong demand associated with low availability of cereals. The specialty trade has also been very successful, particularly with starch products and vegetable proteins. In Germany, BayWa took advantage of several factors, including poor grain quality in France, and succeeded in filling gaps in its export network by forging links with regions such as Saudi Arabia and South Africa. North. BayWa Agrarhandel GmbH, which has been managing the Group’s agricultural trading activities in northern and eastern Germany since January 1, 2021, recorded an increase of around 20,000 tonnes year-on-year in volume of goods handled via block train logistics and Baltic Sea ports despite the grain warehouses. The Agri Trade & Service business unit also has good sales prospects in the coming months. However, due to the very high prices at present and the decision of some manufacturers to reduce their production activities, further development of fertilizer sales remains uncertain after a good season. In agricultural equipment, which benefited from strong demand for used machinery and maintenance and workshop services, BayWa reports well-filled order books for new machinery. With producers currently facing a shortage of crisps, the extent to which orders can be fully fulfilled this year depends on the ability of manufacturers to make deliveries. A lack of containers, high transportation costs and a shortage of seasonal workers negatively impacted the revenues of the Global Produce business unit. BayWa expects the commercialization of the German apple harvest and an increase in demand for exotic fruits during the Christmas season to have a positive effect on the operating result for the year. In addition, the business unit anticipates exceptional income from the sale of a site in New Zealand.

Building materials segment

The Building Materials segment recorded sales of 1.6 billion euros during the period under review (Q1-3 / 2020: 1.4 billion euros). EBIT amounted to € 61.4 million (Q1-3 / 2020: € 39.2 million). The segment benefited from continued good capacity utilization in the German construction industry and experienced sales growth across its product line, with building and roofing construction products increasing. proved to be particularly strong. With good inventory management, as well as an established and stable supplier network, BayWa was able to deliver products with few restrictions and successfully generated higher trade margins. BayWa Bau Projekt GmbH, which is active in residential real estate development through alliances with regional construction companies, was able to capitalize on the positive trend of the first half of the year by selling the remaining units in a semi-detached house construction project south of Munich, among others. Further income from a residential and office park in Schrobenhausen is expected by the end of the year.

BayWa Group’s performance as of September 30, 2021

Income1

BAII2

In millions of euros

9M / 2021

9M / 2020

%

9M / 2021

9M / 2020

%

14 288.7

12 197.8

17.1

191.7

102.7

86.7

Performance of the Energy segment

Income

BAII

In millions of euros

9M / 2021

9M / 2020

%

9M / 2021

9M / 2020

%

Renewable energies

2 219.6

1329.8

66.9

69.0

22.0

> 100

Conventional energy

1465.3

1323.6

10.7

11.1

26.0

– 57.3

Energy segment

3,684.9

2 653.4

38.9

80.1

48.0

66.9

Performance of the Agriculture segment

Income

BAII

In millions of euros

9M / 2021

9M / 2020

%

9M / 2021

9M / 2020

%

Cefetra Group

3,802.0

3281.0

15.9

28.8

16.6

73.5

Products of the world

709.3

711.6

– 0.3

22.7

30.2

– 24.8

Agricultural trade and service

3,119.9

2,764.9

12.8

34.0

6.7

> 100

Agricultural equipment

1378.2

1,358.6

1.4

25.9

24.0

7.9

Agricultural sector

9,009.4

8 116.1

11.0

111.4

77.5

43.7

Performance of the building materials segment

Income

BAII

In millions of euros

9M / 2021

9M / 2020

%

9M / 2021

9M / 2020

%

Building materials segment

1,576.5

1410.5

11.8

61.4

39.2

56.6

Please note: the amounts are expressed in millions of euros and rounded to one decimal place. This can cause minor discrepancies in the totals and in the calculation of percentages.

1 Includes the figures for the Energy, Agriculture, Building Materials and Innovation & Digitization Segments, as well as the Other Activities

2 Includes figures for the Energy, Agriculture, Building Materials and Innovation & Digitalization Branches, as well as Other Activities and the transition

Contact:
Jenny Levié, BayWa AG, Head of Public Relations / Corporate Communications / Public Affairs,
Phone. +49 (0) 89/92 22-36 80, Fax +49 (0) 89/92 12-36 80,
e-mail: [email protected]

11.11.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this advertisement.

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