BayWa is currently undergoing a major restructuring due to financial difficulties, including a significant burden of several billion euros. Pöllinger and Helber will step down from their positions by the end of October 2024, well before their originally planned departure dates.
BayWa’s financial issues, active in sectors such as agriculture, building materials, and renewable energy, are due to several factors including rapidly rising interest expenses and higher tax burdens. This resulted in a loss of nearly €100 million in 2023.
To secure BayWa’s future, there is an urgent need for additional financing. The company has already received a rescue package of approximately €550 million, mostly from its two largest shareholders, Bayerische Raiffeisen-Beteiligungs AG (BRB) and the Austrian Raiffeisen Agrar Invest (RAIG). This amount is composed of a combination of asset sales, components, and other financial support.
Restructuring experts say BayWa “can be restructured under certain conditions and that its operational competitiveness and profitability can be restored in the medium term.” This means it can only succeed if additional financing of half a billion euros (from government, banks, and shareholders?) is provided.
Additionally, BayWa has initiated a restructuring plan focusing on core activities with growth potential, such as international grain trading and sustainable energy. This plan aims to restore the company’s financial health in the long term. Shareholders support this restructuring plan, but it is possible that the company is not yet out of the danger zone.