BayWa says equity capital falls to less than half its registered share capital (updated)

Baywa AG

03/07/2025 09:18

Adds 2024 share decline in paragraph 4, outlook in paragraph 7

July 3 (Reuters) - German agricultural supplies trader BayWa BYWGnx.DE said on Thursday that its equity capital had turned negative as of the end of 2024, falling to less than half of its registered share capital.

The drop was expected due to the necessary write-downs brought on as part of BayWa's restructuring plan, said the company, which will report annual results on July 10 after being delayed due to its financial concerns.

The Munich-based firm has been grappling with rising borrowing costs, forcing it to embark on a restructuring plan, including job cuts.

This led its shares to lose two-thirds of their value across 2024.

Due to the write-downs, BayWa's management board expects a net loss of 1.6 billion euros ($1.89 billion) for the financial year 2024, it said in a statement.

This will have no impact on the implementation of the restructuring plan, which was confirmed by a court in June, and on the restructuring of its financing until 2028, it said.

BayWa added it still expects to return to positive equity in 2028.

Equity capital represents the total value of a company attributable to equity investors and is calculated by subtracting total liabilities from total assets.

According to German law, a company's board must convene a general meeting to inform its investors when the it registers a loss amounting to half of the capital stock.

BayWa said it would discuss the situation during its annual general meeting on August 26.

($1 = 0.8470 euros)

 (Reporting by Isabel Demetz and Tristan Veyet in Gdansk, editing by Milla Nissi-Prussak)

 ((Isabel.Demetz@thomsonreuters.com;))