The operating earnings before interest and taxes (EBIT) in the “Renewable Energies” segment of Baywa AG deteriorated to -65.2 million euros in the first quarter of 2024. Sales also fell significantly.
According to Baywa AG, it is “typical of the season” that sales slipped into the red in the first quarter of 2024. Overall, the company recorded sales of 5.2 billion euros (Q1 2023: 6.3 billion euros) and earnings before interest and taxes (EBIT) of -61.3 million euros (Q1 2023: 91.8 million euros). The decisive factor for the development in the first quarter of 2024 was the development in the renewables sector, Baywa also announced. As early as 2023, the conglomerate was not satisfied with the development here.
Specifically, the company recorded sales of 904.2 million euros in the “Renewable Energies” segment in the first quarter of 2024 (Q1 2023: 1.5 billion euros) and an EBIT of -65.2 million euros (Q1 2023: 53 million euros). . The reason for the significant decline is the persistently weak demand and the extreme drop in prices for photovoltaic modules, which has put a strain on trading margins. In the project business, project rights with a total output of 230 megawatts were primarily sold.
The company expects business development to be significantly more dynamic in the coming months. Further project sales with a total of 950 megawatts and the sale of project rights with a volume of 1.2 gigawatts are planned by the end of the year, which should make a significant contribution to earnings development. The Baywa board of directors is “very confident” about the further course of the financial year and confirmed its forecast for 2024. The target corridor for EBIT is therefore between 365 and 385 million euros.
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