Baywa records a significant 1.6 billion euro financial setback - Baywa reports substantial financial losses of approximately 1.6 billion Euros
BayWa AG, a significant player in agriculture and food supply, particularly in southern and eastern Germany, has announced a comprehensive restructuring plan to address financial challenges. The plan, confirmed by the Munich Local Court under the German StaRUG framework, aims to stabilise the company's financial situation and restore positive equity by the end of 2028.
The restructuring plan involves several key features. BayWa has secured an extension of its existing loans until the end of 2028, providing significant relief on financial liabilities. A major part of the plan includes a substantial increase in share capital from €92.5 million to a potential €277.5 million through issuing up to 72.3 million new shares.
BayWa is expecting a significant net loss of approximately €1.6 billion for the 2024 financial year. Despite this loss, the restructuring plan is designed to help the company return to positive economic equity by the end of 2028. It is important to note that the restructuring plan is not expected to affect the company's operations in other regions beyond southern and eastern Germany.
The restructuring plan is part of a broader transformation targeting financial stabilisation and long-term viability in the agriculture, heating, mobility, agricultural equipment, and building materials sectors in which BayWa operates. BayWa's management describes the restructuring process as professionally handled with minimal disruption, underscoring confidence in the company’s path to recovery and transformation.
It is worth noting that the announcement about the loss and the restructuring plan was made by BayWa itself in a mandatory stock exchange disclosure. The plan is scheduled to be completed by the end of 2028, and BayWa assures that it is not at risk.
In summary, BayWa's restructuring plan is a strategic move to extend debt maturities, strengthen equity, and legally bind creditors and shareholders to these changes. The plan aims to stabilise the company financially, mitigate substantial losses, and restore positive equity by 2028, all while maintaining operational stability crucial for its role in agriculture and food supply.
[1] BayWa AG. (2025). BayWa AG Restructuring Plan Confirmed by Munich Local Court. Retrieved from https://www.baywa.com/en/investor-relations/news/press-releases/baywa-ag-restructuring-plan-confirmed-by-munich-local-court/ [2] BayWa AG. (2025). Majority Approval of BayWa AG's Restructuring Plan. Retrieved from https://www.baywa.com/en/investor-relations/news/press-releases/majority-approval-of-baywa-ags-restructuring-plan/ [3] BayWa AG. (2025). BayWa AG's Capital Increase as Part of the Restructuring Plan. Retrieved from https://www.baywa.com/en/investor-relations/news/press-releases/baywa-ags-capital-increase-as-part-of-the-restructuring-plan/ [4] BayWa AG. (2025). BayWa AG's Outlook for the 2024 Financial Year. Retrieved from https://www.baywa.com/en/investor-relations/news/press-releases/baywa-ags-outlook-for-the-2024-financial-year/
The restructuring plan for BayWa AG, a significant player in agriculture and food supply, incorporates measures aimed at addressing financial challenges, such as increasing share capital to potential €277.5 million and securing an extension of existing loans until the end of 2028.
The Commission's decision on the application of Article 93 (2) of the Treaty regarding BayWa's restructuring plan remains pending, potentially involving the company's financial dealings or business operations.
