BayWa delivers excellent results again in 2021 – growth momentum continues

Listed company does not currently expect its business to be materially impacted by the war in Ukraine

Munich, 24 March 2022 – Even in the second year of the coronavirus pandemic, the BayWa Group succeeded in defying the difficult economic environment and generating record results, allowing BayWa AG to finish the financial year 2021 with a 26% jump in earnings. The new earnings before interest and tax (EBIT) record of €266.6 million (2020 : €211.6 million) confirms the excellent business development of the listed company as part of a trend that emerged over the course of the year. Revenues increased by more than 20% to €19.8 billion (20201: €16.5 billion). Plans are in place to raise the dividend for 2021 by 5 cents to €1.05 per share.

Once again, more than half of the consolidated earnings were generated by BayWa r.e., which has been operating as a German stock corporation within the BayWa Group since March 2021. “I am proud that BayWa r.e., in its role as the European market leader for the energy transition, is successfully leading the charge in the fields of renewable energies. That shows how important entering this sector in 2009 was for the financial success of BayWa,” says Chief Executive Officer Prof. Klaus Josef Lutz. “Despite the tense logistics situation around the world, we managed to further increase our productivity and profitability in the international Cefetra Group and Global Produce Segments.”

The Group’s business activities in Germany also contributed to the record results. “As a provider of essential goods and services in the fields of food, energy and building materials, we were able to cater to our customers’ needs despite lockdowns and the difficult global supply chain,” Prof. Klaus Josef Lutz says. “Throughout the protracted pandemic, we have constantly kept our sites open and have practically always been able to deliver thanks to our warehouses and the modern logistics in every segment, from Agri Trade & Service and Building Materials to Energy. All of our employees share credit for that.”

In the German agricultural business, the changes initiated in 2019 already had a positive effect on earnings contributions in 2021. Lutz: “The reorganisation of our business in eastern Germany, along with the new approach taken in agricultural equipment service and sales and in logistics, was an important pillar of this success.” The agricultural equipment business benefited from above-average sales figures for new machinery and high capacity utilisation at the Group’s workshops.

The Building Materials Segment achieved stronger revenue growth than its competitors and recorded a 56% year-on-year increase in earnings in the financial year 2021. “The shift in our business model towards greater specialisation and services for the construction sector, as well as BayWa Bau Projekt GmbH, acted as significant driving factors for this positive development,” according to Klaus Josef Lutz. “Our long-standing business relationships enabled us to supply our customers and be a reliable partner despite last year’s turbulent conditions for materials such as wood and steel in the building materials market.”

So far, the new financial year is off to a good start. At the present time, BayWa does not expect the war in Ukraine to have a material impact on its activities. Ukraine and Russia are not key sales markets for BayWa. The extent to which logistics chains may be additionally disrupted remains to be seen. Lutz: “We were well positioned with our broadly diversified procurement, storage and logistics network, even before the coronavirus pandemic. Right now, we still view continuing to make sure that people are supplied with energy, food and building materials as our top priority.”