Baywa, which is in trouble, is more than just a traditional company. The group plays a major role in food supplies. Now a solution to the financial problems seems not far away.
For Baywa, which is suffering from debts running into billions, quick help is in sight. The holding company of the Bavarian Volks- and Raiffeisenbanken, as the largest shareholder, wants to support the traditional company. “We will show solidarity and we will also pursue this path constructively together,” said Gregor Scheller, outgoing chairman of the Bavarian Cooperative Association (GVB), in Munich. The financial information service “Platow Brief” previously reported on the emerging solution. According to reports, the aid plan will be announced shortly. Scheller did not give the financial volume or any other details.
Baywa, which emerged from the cooperative movement and has around 24,000 employees, has short- and long-term debts of around 5.6 billion euros. Due to the rapid increase in loan interest rates, the company’s interest burden tripled from 2021 to 2023 to 362 million euros. Ten days ago, the group made its “strained” financial situation and the appointment of a restructuring expert public in a mandatory announcement for the stock exchange. This caused concern not only in the financial scene: Baywa is of considerable importance for the food supply in southern Germany. The company is not only a supplier of seeds, fertilizers and agricultural machinery, but also buys many farmers’ harvests. In addition, many farmers are small shareholders in the company.
It is not the cooperative association that has a direct stake in Baywa, but the Bayerische Raiffeisen-Beteiligungsgesellschaft (BRB), a holding company that holds a good 34 percent of the conglomerate’s shares. According to Scheller, an agreement to help Baywa was reached last Friday at a general meeting called at short notice. “The Bayerische Volks- und Raiffeisenbanken and the BRB will go down this path, and as chairman of the Baywa supervisory board, I am very, very grateful.”
Baywa CEO Marcus Pöllinger was also present at the ceremony to introduce the new GVB President Stefan Müller. Baywa celebrated its 100th birthday in 2023, only to end the anniversary year with a net loss of 93 million euros. In the first quarter, Baywa slipped even deeper into the red with a loss of 108 million euros. In addition to the high interest burden, this was also due to the currently poor business performance.
Source: Stern
