Smooth Cefetra sales crucial for BayWa

This was made clear by CEO Frank Hiller and restructuring director Michael Baur during the presentation of the third-quarter figures. They assured their audience that serious negotiations are underway regarding the sale of Cefetra to a new group of investors who are reportedly "very interested" in acquiring the trading company. The negotiations are expected to be concluded this year, but no further details are available yet.

Income and debt
The sale of Cefetra is now a crucial element of BayWa's restructuring plan. The sale is not only intended to bring in much-needed cash, but also to eliminate significant debt from the balance sheet. Initially, Peter Goedvolk's intended buyer, First Dutch, was supposed to pay €125 million for the transaction (but couldn't raise the funds), which would also have allowed BayWa to write off €600 million in debt. All of this is now uncertain.

Meanwhile, BayWa itself is also performing less well than hoped. Through September, revenues this year fell by 22% to €9,6 billion. Cefetra's revenue also fell by €300 million compared to the same period last year, to €3,3 billion.

More setback
There are more setbacks. The New Zealand subsidiary Turners & Growers, which is involved in the fruit and vegetable trade, is facing losses this year, yet to be determined, due to crop damage caused by bad weather. As a result, sales revenue will likely be disappointing, and the fruit and vegetable divisions will have to be sold separately. 

The divestment of the sustainable energy activities is also proving difficult. The company that previously acquired part of these operations now has to restructure itself, and who wants the remaining shares?
German media are describing the restructuring of the once-successful BayWa as an increasingly dire nightmare. Little is going as the new management initially envisioned.