German conglomerate reveals impact of recent liquidity problems, but insists transformation plan will ensure long-term financial stability
The scale of the task facing BayWa’s restructuring team has been underlined by its latest full-year results, published today.
The German conglomerate’s consolidated revenue fell to €21.1bn in 2024, compared with €23.9bn in 2023.
Meanwhile its operating loss (EBIT), taking into account unscheduled write-downs, was just under €1.1bn, a sharp decline from the previous year’s €304mn profit.
After interest and taxes, BayWa closed the past financial year with a loss of approximately €1.6bn.
The figures lay bare the company’s stark situation. As it stated, a “far-reaching transformation” has been underway for some time now, and following a “crisis of liquidity” in the summer of 2024, BayWa embarked on a comprehensive restructuring process, even taking external advice on whether it could continue as a going concern.
Speaking after the latest results were published, CEO Frank Hiller described what happened in 2024 as “the most serious crisis” in BayWa’s history, one that demanded a number of “necessary, tough and courageous” decisions.
“However, these decisions are already showing their effect,” he insisted. “Now we must continue along this path with determination. Our goal remains to stabilise BayWa economically and lead it into a sustainable future. The initial results for 2025 are positive. We are confident that we will be able to regain the trust of our customers and suppliers in BayWa.”
Michael Baur, who was brought in as chief restructuring officer, pointed out that creditors and major shareholders had approved a path forward that ensures financial stability until 2028.
That plan is understood to involve the potential sale of BayWa’s major holdings in the fresh produce business, among them T&G Global, TFC Holland, and joint ventures in Spain and UAE.
“The implementation of our transformation plan is proceeding according to schedule,” he confirmed. “This includes further debt reduction, the optimisation of product ranges and processes, and targeted efficiency measures. These measures are having an effect and are creating the necessary confidence within the organisation to continue on the path of transformation.”
There are signs that the company has turned a corner, having introduced various cost-cutting measures. Adjusted for restructuring costs, Ebitda for the first three months of 2025 reportedly amounted to €46.6mn, up from €11.0mn in Q1 2024.
And with new funding secured to underpin its recovery, the group said it expected its financing to be further strengthened until 2028.
