BayWa quarterly figures: Progress in restructuring visible - operating business development on the way to stabilisation

Site closures and staff reductions are proceeding according to plan Closing of the sale of the RWA shares in May 2025 BayWa Group: revenues in the first quarter of 2025 down on the previous year due to the ongoing transformationThe BayWa Group reported a year-on-year decline in revenues of 9.2% to €4.7 billion for the first three months of the current financial year 2025 (previous year: €5.2 billion). The decline is mainly due to one-off effects in the course of the ongoing transformation. The personnel measures implemented since the start of the transformation process last year, including the reduction of around 700 jobs, are making a significant contribution to a sustainable operational improvement. In addition, the first site closures - particularly in the BayWa Building Materials Segment - have already been implemented, which should lead to a leaner and more efficient cost structure in future. At the same time, a targeted optimisation of the product range has begun, with a focus on higher-margin products. Adjusted for one-off special effects from the transformation process, particularly in connection with personnel measures and restructuring expenses, the quality of earnings should improve significantly.In addition to the operational measures, structural progress was also made in the reporting period. For example, the sale of the stake in Austrian Raiffeisen Ware Austria AG (RWA AG) was completed on 2 May 2025 for a purchase price of €176 million. The sale of the stake will reduce the BayWa Group's bank liabilities by around €500 million.As a small number of the almost 300 lenders were not prepared to support the restructuring solution worked out after intensive negotiations by the end of January 2025 despite repeated requests, the Board of Management of BayWa AG filed a restructuring plan in accordance with the StaRUG with the competent Munich Local Court - Restructuring Court - on 31 January 2025. BayWa's "StaRUG light" approach differs from other prominent cases in that it is only a microsurgical intervention to implement the financing concept in a legally secure manner, does not require any waivers of claims and, in particular, preserves the subscription rights of all shareholders in the planned capital increase. At the court hearing held on 15 May 2025 to discuss the restructuring plan and the voting rights of those affected by the plan and to vote on the restructuring plan, the restructuring plan was adopted with the required majorities. The confirmation of the restructuring plan by the Munich Restructuring Court, which is required for the plan to take effect, is still pending. This is a key step towards implementing the restructuring plan.Development of the individual segmentsIn the Agriculture Segment, BayWa AG recorded a decline in revenues of 9.8% to €615.8 million. This was primarily due to lower delivery volumes for grain and oilseed as well as a slowdown in the operating resources business.In the Engineering segment, sales fell by 11.9% to 459.7 million euros. However, the decline in new machine sales was partially offset by strong demand in the used machine market.In the Heat | Mobility Segment, BayWa AG generated revenues of €309.2 million, which was almost on a par with the previous year. The growing interest in wood pellets in particular had a positive effect and largely offset negative results in other product groups.The Building Materials segment recorded a 20.8% decline in sales to € 219.2 million. This decline was due in particular to a reduction in inventories. Both the reduction in personnel and the site closures were completed more quickly than planned.In the Renewable Energies segment, sales fell by 10.2 per cent to €812.5 million. Sales of solar modules and inverters declined, due in particular to lower demand and a persistent oversupply on the market.The Global Produce segment comprises all of the Group's activities in the area of fruit and vegetable cultivation. Trading developed positively here, with sales improving by 10.7% year-on-year to € 298 million.[Note to editors]For the purpose of implementing the restructuring concept, the Board of Management of BayWa AG filed a public restructuring plan with the Munich Local Court as the competent restructuring court on 31 January 2025 in accordance with the German Corporate Stabilisation and Restructuring Act (Unternehmensstabilisierungs- und Restrukturierungsgesetz - StaRUG). The restructuring proceedings have not yet been finalised. This also has an impact on the completion and publication of Group financial reporting for the financial year 2024. The audited consolidated financial statements as at 31 December 2024 and the Group management report of BayWa AG for the financial year 2024, including a forecast for the financial year 2025, can only be published once the StaRUG proceedings have been legally concluded. For this reason, this quarterly statement for the first quarter of 2025 cannot be based on comparative figures from the financial year 2024 in the form practised to date, nor can it provide certain key financial figures known from previous financial reporting. This communication therefore differs from the format used to date and there are also special features in terms of content.About BayWa AGBayWa AG is a modern trading company operating in the Agriculture, Heating, Mobility, Agricultural Equipment and Building Materials business sectors. With its products and services, it helps its customers to feed people well, create living spaces for generations and provide mobility and heat exactly where they are needed. Since 1923, the company has stood for security of supply - especially in rural areas. Today, BayWa AG, headquartered in Munich, is represented at around 400 locations and employs around 8,000 people. 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