07.11.2019 BayWa AG  DE0005194062

DGAP-News: BayWa confirms significant increase in earnings for 2019 - Improvement in all core segments


 

DGAP-News: BayWa AG / Key word(s): 9 Month figures
BayWa confirms significant increase in earnings for 2019 - Improvement in all core segments

07.11.2019 / 10:30
The issuer is solely responsible for the content of this announcement.


BayWa confirms significant increase in earnings for 2019 - Improvement in all core segments

BayWa AG, Munich, Germany, has successfully completed the first nine months of the financial year 2019. Whereas revenues as at 30 September 2019 climbed slightly to EUR12.5 billion (Q1-3/2018: EUR12.2 billion), EBIT increased significantly to EUR77.3 million (Q1-3/2018: EUR28.3 million).

All three core segments - Agriculture, Energy and Building Materials - saw improved earnings compared to the same period in the previous year. The Energy Segment recorded particularly positive development, with both Conventional Energy and the renewable energies business achieving a significant improvement in earnings. Conventional Energy benefited from the global oil price trend and an increase in domestic demand for wood pellets. The Renewable Energies business unit further expanded its international activities in the solar and wind plant project business and in solar module trading. Unlike in the previous year, it also sold a few larger plants and systems in the third quarter. The lion's share of sales is once again scheduled for the fourth quarter of 2019. With more than 650 megawatts (MW) in the sales pipeline, it should be possible to achieve a substantial year-on-year increase in the annual result in the Energy Segment in 2019. "The Renewable Energies business unit will again play a major role in our consolidated earnings in 2019, thereby demonstrating the excellent development of these business activities, which we have spent the past ten years nurturing," said Klaus Josef Lutz, Chief Executive Officer of BayWa AG.

The Agriculture Segment also posted positive development, with the Global Produce and Agricultural Equipment business units in particular seeing an increase in earnings. Agricultural Equipment recorded consistently high order intake and brisk demand for services. BayWa expects the positive development to continue in both areas in the final quarter of the year. High-quality harvests in the northern hemisphere and the traditional increase in demand for tropical fruits around Christmas should have a positive effect on business, as should the tremendous willingness of farmers to invest to agricultural equipment.

Agricultural trade activities in Germany were also up significantly year on year after the first nine months of 2019. However, lower demand for agricultural inputs, especially fertilizer (on account of the German Fertiliser Application Ordinance), had an impact on earnings as at 30 September 2019, as did declining grain prices and lower margins in grain trading. The international grain trading team at BAST (BayWa Agri Supply & Trade) successfully continued to expand its speciality business activities, even though the subdued demand for standard produce to date and US trade policy limited trading activity at BAST. In the fourth quarter, BayWa expects the speciality business to continue developing as planned. Higher domestic grain inventories offer additional marketing potential in the domestic agriculture business. The weather-related delay in autumn seed-sowing should help to boost demand for agricultural inputs.

The Building Materials Segment grew further and once again saw improved earnings year on year. BayWa intends to continue benefiting from the brisk construction activity and the expansion of its project activities.

All told, BayWa expects the positive development to persist throughout the rest of the financial year 2019 with the effect of significantly increasing the consolidated earnings for 2019 as planned.

Agriculture Segment: development mixed
The Agriculture Segment saw mixed development in the period leading up to 30 September 2019. In international grain trading, trade tensions led to a decline in exports at BAST and impacted earnings in the business unit, as did the lower demand for feedstuffs compared to the same period in the previous year, during which BAST benefited from the drought-related shortage in staple feed. The Agri Trade & Service business unit secured its improvement in earnings thanks to higher grain recording volume and the strong first half of 2019. At the same time, the market conditions for the domestic agricultural input trade remained difficult, primarily due to the stricter regulations on the use of fertilizers and the decline in rapeseed cultivation.

Earnings in the Global Produce business unit rose significantly thanks to business within Germany, as the company was able to market the remaining volume of the previous year's record harvest at good prices and because the new marketing season started with brisk demand. Although this year's harvest was rather average in terms of volume, it was of significantly higher quality, therefore offering corresponding marketing opportunities in the months ahead. In the international fruit business, T&G Global Limited was successful in the Asia-Pacific market in particular, thanks to specialities such as grapes, berries and citrus fruit.

Earnings in the Agricultural Equipment business unit were significantly higher than planned, even though they did not quite match the record set in 2018, as expected. The business unit benefited not only from a very high propensity to invest among farmers, but also from rising demand from the public sector.

Energy Segment: significant earnings growth
The Energy Segment continued seeing very strong development even after the end of the third quarter. Demand for heating oil continued unabated. Among other factors, market uncertainty following mid-September's attack on oil facilities in Saudi Arabia led to higher orders. The German federal government's climate package may also have motivated customers to engage in panic buying. With the relatively low prices encouraging consumers to stock up in advance, the marketing volume of wood pellets also rose. The Renewable Energies business unit further expanded its international project activities and its trading activities involving PV components. The sale of the Les Landes wind farm in France, with an output of 18 MW, was the main factor behind the significant year-on-year rise in earnings as at 30 September 2019. The service business also saw greater capacity utilisation than in the previous year.

Building Materials Segment: higher share of private brands
The segment benefited from strong economic activity in Germany, especially the increased demand in civil engineering and road construction, as well as in gardening and landscaping. The private brands continued to develop very strongly, particularly in gardening and landscaping. Furthermore, order intake on the BayWa Building Materials Online portal nearly doubled year on year. All told, the building materials business outperformed the market in BayWa's sales regions. In future, BayWa plans to benefit even more strongly from its project business. To this end, BayWa is working with developers and is securing additional building materials sales through digital marketing channels, among other measures.

Innovation & Digitalisation Segment:
milestone in cross-vendor digital farming

The Innovation & Digitalisation Segment pools all of the BayWa Group's activities in Digital Farming and eBusiness. After two years of development, BayWa and its Group company FarmFacts will unveil its new NEXT Machine Management software at this year's Agritechnica. The software enables compatibility between machinery and equipment from different manufacturers, thereby eliminating one of the greatest barriers farmers face when it comes to investing in digital farming. At Europe's leading agricultural equipment trade fair, BayWa and its Group companies will also present digital solutions for eco- and crop-friendly fertilization. As anticipated, the segment's EBIT is negative on account of the extensive investments associated with software development.


BayWa Group performance as at 30 September 2019

  Revenues1   EBIT2
in EUR million 9M/2019 9M/2018 %   9M/2019 9M/2018 %
  12,473.0 12,196.7 2.3   77.3 28.3 > 100
               
 

 

Agriculture Segment performance

  Revenues   EBIT
in EUR million 9M/2019 9M/2018 %   9M/2019 9M/2018 %
BAST 3,645.0 3,938.8 - 7.5   10.6 23.2 - 54.3
Agri Trade & Service 2,709.7 2,574.7 5.2   10.5 - 1.5 > 100
Global Produce 613.4 605.9 1.2   30.2 17.7 70.6
Agricultural Equipment 1,222.9 1,182.8 3.4   14.5 16.3 - 11.0
Agriculture Segment 8,191.0 8,302.2 - 1.3   65.8 55.7 18.1
 

 

Energy Segment performance

  Revenues   EBIT
in EUR million 9M/2019 9M/2018 %   9M/2019 9M/2018 %
Conventional Energy 1,908.1 1,756.7 8.6   21.5 10.8 99.1
Renewable Energies 1,081.2 827.0 30.7   3.9 - 20.9 > 100
Energy Segment 2,989.3 2,583.7 15.7   25.4 - 10.1 > 100
 

 

Building Materials Segment performance

  Revenues   EBIT
in EUR million 9M/2019 9M/2018 %   9M/2019 9M/2018 %
Building Materials Segment 1,275.2 1,292.6 - 1.3   23.3 22.3 4.5
 

 

Innovation & Digitalisation Segment performance

  Revenues   EBIT
in EUR million 9M/2019 9M/2018 %   9M/2019 9M/2018 %
Innovation & Digitalisation Segment 7.0 7.2 - 2.3   - 10.2 - 8.8 - 15.9
 

 

Please note: Amounts are stated in millions of euros and rounded to one decimal place. This may result in minor discrepancies in sum totals and when calculating percentages.

1 Comprises the figures of the Agriculture, Energy, Building Materials and Innovation & Digitalisation Segments, as well as the Other Activities.

2 Comprises the figures of the Agriculture, Energy, Building Materials and Innovation & Digitalisation Segments, as well as the Other Activities and the transition.




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


07.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English
Company: BayWa AG
Arabellastraße 4
81925 Munich
Germany
Phone: 089/ 9222-3691
Fax: 089/ 9212-3680
E-mail: [email protected]
Internet: www.baywa.de
ISIN: DE0005194062, DE0005194005,
WKN: 519406, 519400,
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange
EQS News ID: 906919

 
End of News DGAP News Service

906919  07.11.2019 

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Die wichtigsten Finanzdaten auf einen Blick
  2017 2018 2019 2020 2021 2022 2023e
Umsatzerlöse1 16.055,13 16.625,70 17.059,00 17.155,40 19.839,10 27.061,80 25.500,00
EBITDA1,2 318,44 315,30 403,00 468,40 555,80 858,80 632,00
EBITDA-Marge3 1,98 1,90 2,36 2,73 2,80 3,17
EBIT1,4 171,26 156,60 188,40 215,20 269,60 504,10 355,00
EBIT-Marge5 1,07 0,94 1,10 1,25 1,36 1,86 1,39
Jahresüberschuss1 67,23 54,90 65,10 61,30 128,80 239,50 67,00
Netto-Marge6 0,42 0,33 0,38 0,36 0,65 0,89 0,26
Cashflow1,7 -170,15 -452,20 -24,90 674,80 -583,60 -337,20 0,00
Ergebnis je Aktie8 1,13 0,92 0,80 0,68 1,63 4,36 1,35
Dividende8 0,90 0,90 0,95 1,00 1,05 1,20 0,85
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2023 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

INVESTOR-INFORMATIONEN
©boersengefluester.de
BayWa vink. NA
WKN Kurs in € Einschätzung Börsenwert in Mio. €
519406 25,150 Halten 920,67
KGV 2025e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
8,67 25,58 0,35 14,76
KBV KCV KUV EV/EBITDA
0,93 - 0,03 7,75
Dividende '22 in € Dividende '23e in € Div.-Rendite '23e
in %
Hauptversammlung
1,20 0,00 0,00 11.06.2024
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
08.05.2024 03.08.2023 09.11.2023 28.03.2024
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
-11,67% -20,84% -19,65% -38,28%
    
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