Dividend cancellation at Baywa: Shareholders are left empty-handed

In a recent move likely to disappoint investors, the agricultural trader Baywa has decided not to distribute dividends for the past fiscal year. The company, whose operations are fundamentally solid, felt compelled to take this action due to increased burdens from interest and taxes. As a result of this announcement, investors reacted with concern, sending the stock price sharply down on Friday, although the value was able to stabilize somewhat after more significant initial losses. Despite the calming of the stock's plunge, Baywa continues to experience negative performance on the stock market: With a decline of 11 percent since the beginning of the year and an overall loss of about 30 percent compared to the previous year, the downward trend of the stock continues. Although investors had braced for a dividend shortfall for the reporting year, they had still hoped for a distribution of at least 44 cents per share. The company's challenges have been manifested in recent quarters mainly due to falling commodity prices and reduced demand as a result of high inflation and rising interest rates. However, the Munich-based company remained resilient and optimistic, especially with a view to the fourth quarter and the expected project sales in the renewable energy segment. Baywa, which employs more than 24,000 people and was originally specialized in agricultural trade, has key competencies today in the fields of agriculture, building materials, and especially renewable energies. With an annual turnover of 27 billion euros and a profit of 168 million euros in 2022, the company holds significant market shares. The complete financial results for the year 2023 are expected on March 28.