Company’s H1 results show recovery from negative consequences of Cyclone Gabrielle
Higher apple prices helped lift BayWa Global Produce’s revenue to €540.7m for the first half of 2024, compared to €518.1m for the year-earlier period. The company said the business had recovered significantly in the first half of this year.
“While the previous year was still affected by the negative consequences of a cyclone in New Zealand [cyclone Gabrielle], this year the segment is benefiting from higher prices in both the domestic and international apple business,” it said.
“In addition, part of the outstanding insurance payment for the storm damage in New Zealand was recognised in profit or loss in the reporting period. Compared to the same period last year, EBIT improved to € 5.7m (versus -€2.1m in the first half of 2023).”
Across the whole group, write-downs on the goodwill of its wind and solar subsidiary BayWa re pushed BayWa AG into the red in the first half of the year.
Presenting its results for the first half of the year 2024, the German agriculture and commodities group reported revenues of €10.7bn, down from €12.6bn in the first half of 2023. Earnings before interest and taxes (EBIT) before impairment tests totalled €0 versus €186.9m in the year-earlier period.
The most recent impairment tests resulted in an impairment loss totalling €222.2m. BayWa said all cash-generating units with their non-current assets had to undergo these impairment tests in recent weeks after the company’s market capitalisation fell below the carrying amount of equity.
“These write-downs have no negative impact on the BayWa Group’s ongoing reorganisation efforts and the implementation of the restructuring concept currently being developed,” the group said.
