BayWa wants to improve company results again after difficult year

The turnover of the international trading and service concern BayWa from Munich rose in the past fiscal year 2016 by around 3 percent to 15.4 billion Euro (2015: 14.9 billion Euro). Although the fruit trade and energy trade reached record values in the annual result, the persistently difficult and very volatile agrarian trade markets lowered the EBIT of the entire concern to 144.7 million Euro (2015 158.1 million Euro).

For 2017 BayWa wants to increase the result within the agrarian branch of the business and therefore raise the EBIT of the concern. Klaus Josef Lutz, chairman of BayWay, sees opportunities for this. Within the international agrarian trade BayWa is assuming a further increase of the turnover volume. The company also wishes to profit from the activities of the speciality trader Thegra Tracomex Group, obtained at the start of 2017, who trade in organic grain among other things. Due to the optimising of the invested capital the profitability of the agrarian trade should be raised. BayWa especially wants to put force behind the expansion of the lucrative trade in specialties. In February this year BayWa started the cultivation and trade of premium tomatoes in the United Arab Emirates, subject to the approval of the responsible authorities.

BayWa also expects better results from the domestic agrarian trade in the current year as the rising prices for agrarian products could lead to more liquidity and investment preparation in agriculture.