BayWa — BrandWiki

BayWa

Overview

BayWa AG

type	Public
traded as	fwb: BYW6
industry	Retail and agribusiness conglomerate
founded	1923
hq location city	Munich, Bavaria
hq location country	Germany
num locations	50
num locations year	2021
area served	Worldwide
key people	Klaus Josef Lutz (CEO and Chairman of the Management Board) Manfred Nüssel (chairman of the Supervisory Board)
products	Trading of agricultural products, fertiliser and seeds, sale of agricultural equipment, fruit distribution
revenue	€27.1 billion
revenue year	2022
num employees	22,508
num employees year	2022
website	baywa.com/en
footnotes	Consolidated Financial Statements 2022‡R1R‡

BayWa AG (until 1972: Bayerische Warenvermittlung landwirtschaftlicher Genossenschaften AG) is an internationally active group headquartered in Munich, Germany.[2] Originally founded to support domestic agriculture, the company expanded its activities to the construction and energy sectors.[3][4] BayWa is represented in more than 50 countries through its subsidiaries and holdings. The shareholder structure is still determined by the cooperative sector, which has shaped the corporate culture since its founding.

History

Foundation and early years

Reconstruction after the Second World War

In the course of the Second World War, 23 BayWa warehouses were destroyed. The headquarters in Munich was also affected by the Allied bombing raids. By the end of the war in 1945, 512 of around 6,000 employees had died; 487 were missing or in captivity. With the aim of denazification, all members of the Board of Management and Supervisory Board had to vacate their posts in 1945.[5] In addition, dozens of managers were dismissed. Their successors initially took office on an interim basis. Josef Singer took over as chairman of the Board of Management of BayWa. Due to its strategic importance for supplying the population with food, BayWa received early approval from the U.S. military government to resume its business operations as well as nationwide shipments.

The 1950s were marked by structural change in agriculture.[5] In the countryside, there was a lack of personnel for the steady expansion of agricultural operations, as the growing industry became more attractive to many workers. BayWa responded by expanding its range of machinery as well as maintenance and services in the technology sector. Tractors, combine harvesters, forage harvesters and milking machines were in particular demand. The increased consumption of meat also necessitated more animal fattening, so that the steady rise in sales of concentrated feed compensated for the drop in sales of hay and straw. Agricultural mechanization and automation continued throughout the 1960s, and 1970s.

At the same time, the company benefited from the real estate boom that began in the 1950s, and continued through the 1960s, and 1970s. The sale of building materials developed into an important mainstay. The company also laid the foundation for BayWa DIY superstores and garden centers in 1975, to establish another sales channel. The sale of heating oil and other lubricants formed the basis for BayWa's network of filling stations in the 1950s, with which the company wanted to reflect the desire for individual mobility.[10]

Organizational changes and international expansion

The expansion of business activities from the agricultural sector to the construction and energy industries led to significant growth in BayWa's sales. In 1959, this exceeded the one billion Deutsche Mark mark for the first time and by the end of the 1960s, had already exceeded the two billion mark. In 1970, BayWa was the first company in the industry to introduce electronic data processing into its operations. To improve efficiency of internal document management, IBM scanners were used on a large scale, capable of processing more than 100,000 documents a day.

In order to reflect the change in the company's external image, the Bayerische Warenvermittlung landwirtschaftlicher Genossenschaften was officially renamed BayWa on July 13, 1972. In addition, the personal union of the Board of Management with the Bayerische Raiffeisen-Zentralkasse (BRZ), which had been established in the 1960s, was abandoned. Otl Aicher, who also designed the corporate design for the 1972 Summer Olympics in Munich, created a new logo for the company. The green square is still used today.

In the 1980s, trends such as environmental protection and electronics opened up new opportunities for the company's business. Nevertheless, BayWa had to contend with structural problems in the agricultural sector as well as the construction industry. In response to the economic downturn, the company introduced a divisional organization in 1986. However, the collapse of Bayerische Raiffeisen-Zentralbank (BRZ) was decisive for this decade. BayWa's main shareholder had run into trouble due to speculation on the real estate market. Bayerische Raiffeisen-Beteiligungs-Aktiengesellschaft took its place.[11]

After German reunification, BayWa also became involved in the new federal states and set up locations in Brandenburg, Saxony, and Thuringia. In doing so, it cooperated with the Bäuerliche Handelsgenossenschaft (BHG) and also relied on a franchise system.[12]

In 1994/1995, BayWa also became active in Austria through acquisitions.[13][14] With the help of existing subsidiaries, it was also able to expand its business to Eastern Europe (Bulgaria, Croatia, Poland, Slovakia, the Czech Republic, and Hungary).[15] In order to grow not only internationally but also in the domestic market, Württembergische Warenzentrale was acquired in the early 2000s.[16][17]

Corporate affairs

Shareholders

The share capital of BayWa Aktiengesellschaft amounted to approximately €90 million as of December 31, 2019. The shares are traded on the Frankfurt Stock Exchange[31][32] and the Munich Stock Exchange[33][34] as well as via Xetra. They are part of the Prime Standard of Deutsche Börse, a legally regulated stock exchange segment with the highest admission requirements.

The shareholder structure of BayWa Aktiengesellschaft is determined by Raiffeisen companies from Germany and Austria.[35] BayWa Aktiengesellschaft's Articles of Association intentionally restrict the group of shareholders in order to preserve the cooperative character of the company. BayWa's largest shareholder is Bayerische Raiffeisen-Beteiligungsgesellschaft (34.75%), based in Beilngries. It is joined by Raiffeisen Agrar Invest (25.01%) based in Vienna. Around 40% of the shares are in free float, so that the corresponding threshold for inclusion in the SDAX is reached.

Boards

The Board of Management of BayWa Aktiengesellschaft consists of several, but no more than nine, members.[36] They are appointed by the supervisory board for a term of up to five years. Multiple appointments are possible so that the term of office is de facto not limited. The supervisory board appoints the chairman of the Board of Management. The Articles of Association stipulate that one member of the Board of Management should be mainly responsible for human resources and social affairs. Further details on the allocation of duties in the management board are governed by rules of procedure.

Currently (as of April 2021), there are four members of the Board. These are Klaus Josef Lutz (Chief Executive Officer) and Andreas Helber (Chief Financial Officer), as well as Marcus Pöllinger and Reinhard Wolf.[37]

The Supervisory Board of BayWa Aktiengesellschaft consists of sixteen members.[36] Re-election is possible so that the term of office of members of the supervisory board is not limited. The supervisory board appoints a chairman and at least one deputy chairman from among its members. Currently (as of July 2020), four women and twelve men are members of the supervisory board.

Financials