BayWa AG reports increased sales in the first three quarters of this year, to €12.2 billion. As anticipated, EBIT fell sharply to €28.3 million, down from €90.3 million in the same period last year.
Despite this, the Munich headquartered company is confident of a significant profit jump in Q4. This is based on its plans to sell solar and wind farms totaling 450 MW. CEO Klaus Josef Lutz says this will allow BayWa to exceed its previous year’s energy results.
After three quarters the company’s financials are still significantly below those of last year. In terms of sales, both conventional and renewable energies together increased by over 3% to €2.58 billion. EBIT, however, fell 10% to a loss of €10.1 million.
Overall, the company’s renewables business contributed €827 million, which is 2% less that in Q1 to Q3 2017. EBIT, meanwhile, was €-20.9 million.
While a profit of just under €50 million was achieved last year as a result of the sale of PV and wind power projects totaling 250 MW, just 47 MW worth of projects have been sold so far this year.
For the FY, the company remains confident it will achieve its targets. “BayWa plans to achieve Group EBIT on par with the previous year, thereby balancing out the non-recurring effect from 2017 of roughly €20 million from the sale of the corporate headquarters, at least on an operative level,” read a statement issued.
The headline was amended on 09.11.2018 to remove implication that BayWa has to sell the assets to improve its poor financial performance.