BayWa AG, Munich, significantly exceeded its targets for the financial year 2020 despite the restrictions associated with the coronavirus pandemic. At €215.2 million, earnings before interest and tax (EBIT) were significantly better than expected (2019: €188.4 million). All segments contributed to this positive trend, with some business units generating record-breaking figures. As expected, there was a moderate rise in revenues to €17.2 billion (2019: €17.1 billion). BayWa AG plans to raise its dividend for 2020 by 5 cents to €1.00 per share.
“As a provider of essential goods and services, BayWa is a diversified, international company with a successful track record in forward-looking business units such as Renewable Energies says Klaus Josef Lutz, Chief Executive Officer of BayWa AG.
“BayWa has therefore proven to be robust in the coronavirus crisis as well, plus it has even managed to achieve growth. The global expansion of renewable energies is a megatrend that continues unabated. In 2020, we sustained our growth in the Renewable Energies business unit and achieved record-breaking revenue and EBIT figures. Furthermore, our conventional business areas also developed positively. From heating oil and wood pellets to fruit and tractors and the building materials trade, almost all operating areas benefited from high levels of demand and recorded year-on-year growth, in some cases by a substantial margin.”
The only business area to post negative EBIT was the German agricultural trade, despite higher revenues. “This is where one-off costs for the restructuring of our Agri Trade & Service business unit, which we implemented in eastern and northern Germany last year, are having an impact,” Lutz continues. “This expenditure was necessary to secure future profitability in the German agriculture business and was more than compensated for by results in other business divisions. BayWa’s diversified approach has once again proven to be a major advantage in this regard.”
BayWa expects revenues and EBIT to increase slightly year on year in the financial year 2021, provided the restrictions imposed on the global economy due to the ongoing coronavirus pandemic remain manageable. “Renewable Energies will continue to be a pillar of our success in the current financial year,” the Chief Executive Officer adds. The project pipeline for 2021 is well-filled with 1.1 gigawatts (GW). The capital increase at BayWa r.e. renewable energy GmbH (BayWa r.e.) by Swiss investor EIP provides additional tailwind.
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