Billions in debt pile up

Baywa has to withdraw forecast - former board member settles accounts with successor

06:22 - Finance100

The agricultural group Baywa is heavily in debt. Now the company has to cut its targets. Klaus Josef Lutz, Baywa's long-standing board member, has now settled accounts with his successor. He is probably not the right person for the current challenges.

Indebted Baywa withdraws forecast

At the same time, Baywa announced preliminary figures for the first half of the year, which are, however, subject to the review of assets to be carried out. For this reason, the publication of the half-year report, which was originally scheduled for August 8, has been postponed to September 27, as Baywa also announced.

Baywa, which emerged from the cooperative movement

with around 24,000 employees, has current and non-current liabilities of around 5.6 billion euros. Due to the rapid rise in interest rates on loans, the company's interest burden has tripled to 362 million euros between 2021 and 2023. Ten days ago, the Group published its "strained" financial situation and the appointment of a restructuring expert in a mandatory announcement to 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 seed, fertilizer and agricultural machinery, but also buys many farmers' crops. Many farmers are also small shareholders in the company.

Source: $BYW6 (-1.92%) Finance 100