MUNICH (dpa-AFX) - Lower prices for raw materials, operating supplies and construction materials are hitting Munich-based conglomerate Baywa. In the first half of the year, the agricultural trader and eco-electricity group earned significantly less in its day-to-day business than in the same period last year. Chief executive Marcus Pollinger pointed to the high basis for comparison in the exceptional year 2022. In addition, increased interest rates and high inflation curbed the willingness to invest and purchasing power, he said in Munich on Thursday, according to a statement. He sees Baywa as robustly positioned for the prevailing market conditions, as issues such as the expansion of renewable energies and the creation of living space remain crucial topics in his view. The manager confirmed the annual forecast.

In the first six months, Baywa generated sales of 12.6 billion euros, compared with 12.9 billion in the same period last year. However, earnings before interest, taxes, depreciation and amortization (Ebit) slumped by around 43 percent to 186.9 million euros. The Renewable Energies and Technologies business unit would have been one of the earnings drivers, but earnings in the Building Materials segment fell drastically, it said. For the year as a whole, the Baywa Group still aims to generate between 320 and 370 million euros in operating profit./lew/jha/