BayWa makes considerable gains in Q3
The Group’s positive development in the third quarter was predominantly driven by the international business of the Agriculture segment and renewable energies, which evened out the effects of problematic framework conditions in national agricultural trade in the same period.
According to Lutz, 6 major solar and wind power projects, with a total output of 114.5 megawatts, were successfully sold in the third quarter alone. The fruit trading result also rose year on year, above all on account of growth at New Zealand Group company T & G Global Limited and its subsidiaries.
Revenues in the Agriculture Segment, which comprises trading in agricultural operating resources and produce as well as the Agricultural Equipment and Fruit business units, came to €7.69 billion as at 30 September 2015 (2014: €7.70 billion). EBIT after the first nine months of 2015 stood at €63.9 million (2014: €69.8 million).
BayWa’s international Group companies in the agricultural trade business also performed well in operating terms. Amongst other things, new sales channels were opened up in North Africa and the Arab world, which are set to benefit BayWa moving forward.
Excellent development was also observed in fruit trading. Revenues after the first nine months of 2015 stood at €473.7 million (2014: €432.7 million). EBIT came to €22.1 million (2014: €15.9 million), which equates to a rise of 38.6%. In terms of international fruit business, the Group benefited from the activities and acquisitions of New Zealand subsidiary T & G Global Limited. German fruit trading was more stable than in the previous year thanks to the slight rise in apple prices, and so it is expected that the positive will continue in the current marketing season.
BayWa’s agricultural equipment business once again bucked the market trend in the third quarter, as was the case in the first half of 2015. The agricultural equipment markets in Germany and in Europe were impacted by sharp falls in sales figures of up to 10%. Despite the yearon-year rise in the sales of used equipment, the Agricultural Equipment business unit was unable to escape the market trend completely and generated revenues of €966.7 million (2014: €971.9 million) and EBIT of €9.1 million (2014: €13.6 million). The increased pressure on margins in new machinery sales and the rise in personnel costs after adjustments to collective bargaining agreements were two key factors here. The leading industry trade fair Agritechnica, which is due to open its doors in a couple of days, is expected to stimulate demand for tractors and agricultural machinery.
For More Information:
Marion Danneboom
BayWa AG
Tel: +49 89/92 22-36 80
E-mail: marion.danneboom@baywa.de
Website: www.baywa.com/