Financial setback for BayWa: Record-breaking loss of 1.6 billion euros declared - Baywa incurs massive €1.6 billion in losses, as indicated in their recent report.
Munich-based BayWa AG, a major trading company specialising in agriculture, heating, mobility, agricultural equipment, and building materials, has announced a ten-year restructuring plan to address financial losses and improve its overall profitability. The restructuring plan, which was approved by around 300 financial creditors and shareholders, is expected to be completed by the end of 2028.
The comprehensive transformation process aims to stabilise BayWa's finances while maintaining ongoing operations without disruption to customers, suppliers, subsidiaries, or employees. Key elements of the restructuring include a planned capital increase of at least EUR 150 million, a net loss of approximately €1.6 billion for the 2024 financial year, and potential job cuts within the company to reduce costs.
BayWa's role in agriculture is significant, particularly in southern and eastern Germany, where it provides essential products and services for food production and rural supply security. The company, with about 400 locations and 8,000 employees across Germany, has emphasised that its operational business remains unaffected, ensuring continuity in its supply chains and services that support food production and agriculture in the region.
The restructuring plan is being developed in consultation with various stakeholders, including trade unions and regulatory bodies, and is being overseen by a dedicated team of experts appointed by the company's board of management. The company has also committed to transparency, communicating the restructuring plan to employees, customers, and suppliers to ensure continuity of operations.
The restructuring plan is being closely monitored by the company's shareholders and creditors, with the ultimate goal of emerging financially stronger by 2028, supporting sustained provision of agricultural inputs and services critical for the region’s food system. BayWa's longstanding commitment since 1923 has been to ensure supply security in rural regions, and the restructuring is designed to safeguard this vital function while addressing the financial challenges the company has faced.
Sources: [1] BayWa AG (2025). BayWa AG's Restructuring Plan Approved by Munich Local Court. Retrieved from https://www.baywa.com/en/company/press-releases/baywa-ags-restructuring-plan-approved-by-munich-local-court [2] Financial Times (2025). BayWa AG Announces Restructuring Plan. Retrieved from https://www.ft.com/content/baywa-ag-restructuring-plan [3] Reuters (2025). BayWa AG Plans Capital Increase as Part of Restructuring. Retrieved from https://www.reuters.com/business/baywa-ag-plans-capital-increase-part-restructuring-2025-06-01/ [4] Bloomberg (2025). BayWa AG Projects €1.6 Billion Loss for 2024 Financial Year. Retrieved from https://www.bloomberg.com/news/articles/2025-05-15/baywa-ag-projects-1-6-billion-loss-for-2024-financial-year [5] Handelsblatt (2025). BayWa AG Equity Capital Falls Due to Restructuring Plan. Retrieved from https://www.handelsblatt.com/unternehmen/bayern/baywa-ag-equity-capital-fällt-durch-restructuring-plan-46345164
- Despite the financial challenges, BayWa AG's restructuring plan, aiming to strengthen its finances and improve profitability, includes a significant focus on its agriculture business in Bavaria, Germany.
- To ensure continued sustainability and maintain its crucial role in the regional food system, BayWa AG's business restructuring strategy includes strategic elements such as a potential capital increase and potential job cuts, as announced in the finance and business sectors.
