The Munich-based group generated decrease gross sales within the first half of the 12 months. In addition, it ought to make vital write-downs, particularly within the renewable power enterprise.
Unscheduled write-downs weighed closely on Baywa AG’s consolidated half-year outcomes printed on Friday. In July, the Munich-based group’s share worth greater than halved after commissioning a restructuring report and since then it has recovered solely barely from the stoop.
The monetary assertion reveals that Baywa generated gross sales of €10.7 billion ($11.97 billion) within the first six months of this 12 months, nearly €2 billion lower than a 12 months in the past. Earnings earlier than curiosity and taxes (EBIT) earlier than so-called impairment assessments amounted to €0.0 million, up from €186.9 million a 12 months earlier. The most up-to-date impairment assessments resulted in impairment losses amounting to €222.2 million, Baywa mentioned.
All cash-generating models with their long-term property needed to bear these impairment assessments in latest weeks – a consequence of the market capitalization falling beneath the e-book worth of fairness. Baywa added that these write-downs won’t have a destructive affect on the continued restructuring efforts and the implementation of the restructuring idea that’s at present being developed.
However, Baywa nonetheless didn’t dare to make a forecast for the present fiscal 12 months.
According to the report, the Renewable Energies section was primarily chargeable for the decline in EBIT and a big portion of the write-downs. The division’s gross sales fell from €3 billion to €1.8 billion year-on-year. According to Baywa, EBIT minus €102.8 million, in comparison with a revenue of €98.4 million within the first half of 2023. Changes within the worth of the Renewable Energies section, decided by impairment assessments in accordance with IAS 36, amounted to € 171.5 million. The largest half, €114.4 million, is attributable to the long-term property of the IPP enterprise unit, which sells electrical energy produced by the corporate’s personal wind energy and PV programs. The vital drop in electrical energy costs has modified assumptions about grid feed-in, elevated capital prices, occasional adjustments within the phrases of lease contracts and elevated prices of finance makes the adjustments vital. In addition, write-downs on goodwill and long-term property had been made.
The firm additionally commissioned a separate restructuring report back to fight the disaster and appointed a separate chief restructuring officer. The restructuring report reveals that the renewables subsidiary is “effectively positioned in its core markets in the long run.” Business gross sales of PV, wind energy and battery storage tasks are additionally anticipated to extend within the fourth quarter of 2024. Previously, most gross sales additionally came about on the finish of the 12 months.
The outcomes of the opposite divisions didn’t deviate a lot from Baywa’s numbers within the first half of 2023.
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