(Reuters) – German agricultural group BayWa suspended its full-year profit forecast on Wednesday, citing an ongoing restructuring, and posted preliminary revenue of 10.7 billion euros ($11.60 billion) for the first half of the year.
The company said its preliminary earnings before interest, tax, depreciation and amortization stood at 149.5 million euros for the first half of 2024, less than half of the 322.1 million euros it earned in the same period last year.
The Munich-based trader of farming supplies and produce has been grappling with rising borrowing costs. Earlier in July, it commissioned an external probe into whether it can restructure its finances, referring to a “tense financing situation.”
BayWa said on Wednesday it continues to be in constructive talks with its financing partners, adding that it also has postponed publication of the final half-yearly results to September, citing impairment reviews.
A restructuring report is usually required by creditors and is a prerequisite for them to grant further loans or to extend them.
On Tuesday, Reuters reported that Swiss energy investor Energy Infrastructure Partners is in talks with BayWa to increase its stake in BayWa’s renewable energy unit to at least 70% to 80%.
($1 = 0.9228 euros)
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Chris Reese and Bill Berkrot)
