Baywa raises the alarm: 650 million euros in debt reduction through sale!

Baywa raises the alarm: 650 million euros in debt reduction through sale!

In the past few days, Baywa AG has made headlines, because the agricultural group has made a decisive step in its comprehensive corporate renovation. As the Natur- und Projektgesellschaft Coburg Dutch subsidiary Cefetra reduce the debt by a remarkable 650 million euros. The sales price for the transfer of this daughter to the FIRST DUTCH group is 125 million euros. This business is expected to be completed in the third quarter of 2025.

CEFETRA is an important supplier of agricultural raw materials, especially for feed production and grain trade. The subsidiary even has high loans, which will lead to an additional reduction in debt by around 500 million euros. According to the BayWA, the long -term and short -term financial debts now add up to over five billion euros, which illustrates the need for renovation.

financial challenges

Baywa already fell into serious financial difficulties in the summer of 2024. Rising interest payments and a negative day -to -day business pressed the company's balance sheet. According to a renovation report by Roland Berger, a loss of 1.203 billion euros is expected for the past year, while another 1.23 billion euros are forecast in the current year. These losses are not only the result of internal problems, but also the ongoing crisis situation and economic weakness in building materials.

The latest reports show that sales forecasts should decrease to around 19 billion euros - that is over 2.5 billion euros less than in the previous year. For the group, profits are only expected again in 2028, with a forecast positive record of around 490 million euros.

insolvencies in context

The situation of Baywa is symptomatic of a worrying trend in Germany. As Agrar today , the bankruptcies increase by 44.4 percent, especially for larger companies. While the majority of corporate bankruptcies are still concerned, chain insolvencies have increased and are a serious threat to economic stability. The economic framework has intensified for German industry, which puts many companies under pressure.

BayWa has already announced the sale of foreign subsidiaries and participations, in addition to the sales of CEFETRA, T&G and Baywa R.E. to reduce the debt load by around four billion euros.

The coming years will be decisive for the future of the company. The renovation could lead to Baywa again becoming a company that is largely limited to Germany. In order to exist in this tense location, Baywa will concentrate on the core areas of agriculture, technology, energy and building materials. Despite the challenges, there are also opportunities through long -term relationships with farmers and the increasing demand for innovative products.