BayWa (BYW) Q2 2024 earnings summary

Executive summary

• Revenues for H1 2024 fell 14.7% year-over-year to €10.7 billion, mainly due to lower sales prices in renewable energies and energy trading, and weak demand in construction.

• Operating EBIT dropped to €0.0 million before impairments and to €-222.1 million after €222.2 million in impairments, compared to €186.9 million in H1 2023.

• Net loss for H1 2024 was €290.5 million, compared to a profit of €23.2 million in H1 2023, driven by impairments and weak operating performance.

• A restructuring report confirmed the Group's ability to restructure, with cost-cutting and divestitures planned; no earnings forecast for 2024 is provided.

• EPS declined to €-4.22 from €-0.01 in H1 2023.

Financial highlights

• Gross profit declined by €193.7 million to €1,397.6 million; gross margin compressed due to higher material costs relative to revenue.

• Cash flow from operating activities was €350.9 million, down €166.4 million year-over-year.

• Cash and cash equivalents at period end were €197.0 million, down 23.9% from H1 2023.

• Equity fell by €344.5 million to €1,368.5 million, mainly due to the net loss and negative valuation effects.

• EBITDA margin fell to 1.0% from 2.6% in H1 2023.

Outlook and guidance

• The Board expects sustainable restructuring and new financing arrangements, with the final restructuring report due December 2024.

• No earnings forecast for 2024 due to ongoing restructuring and uncertainty over the timing and impact of planned measures.

• Forward-looking statements highlight ongoing risks and uncertainties, with no guarantee of future performance.