Investor Relations
Newsletter 3rd quarter
2021
Strong, above-average
third quarter - BayWa reaffirms targets for the year
Overview
- Strong EBIT growth in all three operating segments
- Energy Segment:
After the first nine months of the current financial year, the BayWa Group is reporting a price-relatedyear-on-year increase in revenues of 17.1% to around €14.3 billion (Q1-3/2020: €12.2 billion). Earnings before interest and tax (EBIT) climbed by 86.7% year on year, rising from €102.7 million to €191.7 million as at 30 September 2021. This significant improvement in earnings was carried by all three core operating segments.
The Energy Segment generated the largest rise in earnings. This positive performance was solely due to the Renewable Energies business unit, where photovoltaic component trading succeeded in matching the strong development in the first half of the year and more than compensating for the anticipated decline in earnings from the Conventional Energy business unit. In the
Building Materials Segment, the continued dynamic development in the building materials trade led to significant earnings growth. The Building Materials Segment has so far been able to offset supply bottlenecks and rising prices through efficient logistics structures. The Agriculture Segment also recorded a marked rise in EBIT. Here BayWa benefited from higher commodity prices for agricultural products and from high investment propensity among farmers.
"The third quarter was an unusual quarter that was characterised by rising commodity prices," says Klaus Josef Lutz, Chief Executive Officer of BayWa AG. "All three operating segments were able to use this market environment to their advantage. We also further advanced our contribution to the energy transition."
- Strong trade in photovoltaic components
- Significant rise in wood pellet sales
• Agriculture Segment:
- BayWa leverages dynamic development of agricultural product prices
- High investment propensity among farmers continues
- Building Materials Segment:
- Profit margins reach new highs
- BayWa AG signs ESG-linked syndicated financing agreement for €1.7 billion
Key Financials of the
BayWa Group
Income Statement
in EUR million | Q1 2021 | Q2 2021 | Q3 2021 | 01-09/2021 | 01-09/2020 | Change | ||||||
Revenues | 4,272.1 | 5,011.3 | 5,005.3 | 14,288.7 | 12,197.8 | 17.1% | ||||||
EBITDA | 103.0 | 159.9 | 108.6 | 371.5 | 264.8 | 40.3% | ||||||
EBIT | 45.1 | 99.5 | 47.1 | 191.7 | 102.7 | 86.7% | ||||||
EBT | 20.9 | 73.1 | 22.5 | 116.5 | 25.8 | >100% | ||||||
Consolidated net result | 14.7 | 52.1 | 16.7 | 83.5 | 18.3 | >100% | ||||||
EBIT per Segment
in EUR million | Q1 2021 | Q2 2021 | Q3 2021 | 01-09/2021 | 01-09/2020 | Change | ||||||
Energy | 37.0 | 20.3 | 22.8 | 80.1 | 48.0 | 66.9% | ||||||
Renewable Energies | 33.7 | 17.1 | 18.2 | 69.0 | 22.0 | >100% | ||||||
Conventional Energy | 3.3 | 3.2 | 4.6 | 11.1 | 26.0 | -57.3% | ||||||
Agriculture | 31.2 | 57.1 | 23.1 | 111.4 | 77.5 | 43.7% | ||||||
Cefetra Group | 11.0 | 9.1 | 8.7 | 28.8 | 16.6 | 73.5% | ||||||
Global Produce | 1.0 | 13.5 | 8.2 | 22.7 | 30.2 | -24.8% | ||||||
Agri Trade & Service | 14.7 | 24.3 | -5.0 | 34.0 | 6.7 | >100% | ||||||
Agricultural Equipment | 4.5 | 10.2 | 11.2 | 25.9 | 24.0 | 7.9% | ||||||
Building Materials | −5.7 | 39.3 | 27.8 | 61.4 | 39.2 | 56.6% | ||||||
Innovation & Digitalisation | −3.2 | −1.6 | -2.9 | -7.7 | -8.4 | 8.3% | ||||||
Other Activities | −14.2 | −15.6 | -23.7 | -53.5 | -53.6 | 0.2% | ||||||
Total | 45.1 | 99.5 | 47.1 | 191.7 | 102.7 | 86.7% | ||||||
Share of revenues | Share of EBIT (operational) - | ||
Earnings per share (EPS)* | per Segment | per segment | |
in % as at 30/09/2021 | in % as at 30/09/2021 | ||
in EUR | |||
0.99
0,68
-0.33
01-09/2020 | 01-09/2021 | Energy | Agricul- | Building | Energy | Agricul- | Building | |||
25.8 % | tural | Materials | 31.7 % | tural | Materials | |||||
63.1 % | 11.1 % | 44.0 % | 24.3 % |
* Earnings per share including hybrid dividend
Capital market
Capital market developments, 01-09/2021
Stock markets rose to new heights in the third quarter. In Au- gust, the German benchmark index (DAX) reached an all-time high of 16,030 points over the day. However, prices dropped again in September. A renewed increase in new coronavirus infections, supply bottlenecks for essential economic goods and skyrocketing prices for gas and electricity had a negative impact on many sectors of the economy. The crisis involving the insolvent real estate developer Evergran- de in China and the signalised tightening of monetary policy by the US Federal Reserve weighed down growth.
With effect from 20 September 2021, Deutsche Börse changed the criteria used to select candidates, as well as the number of constituents included in the index. The DAX grew from 30 to 40 companies, whereas the MDAX was reduced from 60 to 50 constituents. The number of constituents in the SDAX 70 and TecDAX 30 remained the same. The goal of the change is to reduce the previously high weighting of
players from the "old economy" in the DAX (chemicals, auto- motive, financial services) so as to better reflect the overall German market. Furthermore, the criteria for including candidates were made stricter, with only profitable companies being admitted going forward. In addition, every company chosen for inclusion in one of the selective indices must submit audited annual reports and quarterly statements. The composition of the DAX indices will be subject to review twice a year instead of just once.
After a record-setting first six months, the German new issue market saw fewer flotations in the third quarter. Only two companies undertook an IPO. New issue volume stood at €553 million in the third quarter following around €4 billion and ten IPOs in the quarter before that. This decrease was most likely due to the summer holidays and a difficult capital market environment. In terms of the year to date, however, the development on the primary market in Germany remains above-average in comparison to previous years.
BayWa Share 2021: Price performance compared with the SDAX and DAX
BayWa | SDAX | DAX | BayWa | 37.30 € | |||||
130 % | |||||||||
12.9 % | Closing Price on | ||||||||
125 % | 01/11/21 | ||||||||
120 % | |||||||||
115 % | SDAX | 17,213.03* | |||||||
110 % | 16.6 % | Closing Price on | |||||||
01/11/21 | |||||||||
105 % | |||||||||
100 % | |||||||||
95 % | DAX | 15,806.29* | |||||||
90 % | 15.2 % | Closing Price on | |||||||
01/11/21 | |||||||||
Jan '21 | Feb '21 | Mar '21 Apr '21 | May '21 | Jun '21 | Jul '21 | Aug '21 | Sep '21 | Oct '21 | |
* Points | |||||||||
Current analyst recommendations | BayWa Share |
Kepler Cheuvreux | Buy | August 2021 |
Pareto Securities | Buy | August 2021 |
Metzler | Buy | August 2021 |
Closing Price on 01/11/2021 | 37.30 € |
Closing Price on 30/09/2021 | 36.40 € |
52W High | 42.05 € |
Warburg Research | Hold | August 2021 | 52W Low | 26.40 € | |
DZ Bank | Hold | August 2021 | |||
Finanzkalender 2021/2022 | Investor Relations | ||||||
BayWa AG | |||||||
Arabellastraße 4 | |||||||
11 November 2021 | Analysts' Conference Call on theThird Quarter | 8.30 am | BayWa, Munich | D-81925 München | |||
25 March 2022 | Analysts' Conference, Full-year 2021 | 11.00 am | BayWa, Munich | T +49 (0) 89 9222-0 | |||
F +49 (0) 89 9212-3448 | |||||||
5 May 2022 | Analysts' Conference Call on theFirst Quarter | 8.30 am | BayWa, Munich | BayWa Group on the | |||
24 May 2022 | Annual General Meeting | 10.00 am | ICM, Munich | ||||
internet: | |||||||
4 August 2022 | Analysts' Conference Call on the Second Quarter | 8.30 am | BayWa, Munich | www.baywa.com/ | |||
investor_relations | |||||||
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Disclaimer
BayWa AG published this content on 10 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2021 06:36:07 UTC.