BayWa AG
BayWa AG: Strong first quarter with leap in earnings
BayWa AG / Key word(s): Quarter Results BayWa AG: Strong first quarter with leap in earnings BayWa AG has had a successful start to the financial year 2014. The internationally active trading and services company was able to improve its earnings before interest and tax (EBIT) by EUR11.7 million, generating an operating result of EUR4.3 million (2013: EUR-7.4 million). In the first three months of the year, BayWa’s business benefited from the mild weather and strong international business. With revenues on par with the previous year of around EUR3.6 billion (2013: EUR3.7 billion), BayWa AG was able to attain a significantly better operating result than usual for this period. The first quarter usually sees negative growth due to seasonal influences. “The unusually mild winter was very positive for the Agriculture and Building Materials Segments. The business with agricultural equipment, operating resources and building materials benefited from the earlier start to the season,” Klaus Josef Lutz, Chief Executive Officer of BayWa AG, explained. Internationalisation also played a key role in the positive earnings development in the first quarter, he said. The trading activities of Dutch subsidiary Cefetra and the global project business in the field of renewable energies made a significant contribution to this. While he emphasized that the first three months Weather and internationalisation boost agriculture business The advanced development of vegetation had a particular impact on the sale of operating resources such as fertilisers, seed and crop protection. However, revenues in Agricultural Trade fell by 5.9% to around EUR2.2 billion. The reason for this was the decline in fertiliser and grain prices. In terms of the operating result, international trading activities had a particularly important role to play: The Dutch holding Cefetra capitalised on high turnover volumes on the world market to double its earnings contribution year on year. The Bohnhorst Group also recorded positive business performance, resulting in an overall year-on-year increase in the Agricultural Trade business unit’s EBIT of 20.6% to EUR23.3 million. In the agricultural equipment business, BayWa exceeded the good figures from the first quarter of the previous year. Alongside the high level of orders on hand for new machinery from 2013, sales of used machinery also increased. Revenues in the Agricultural Equipment business unit rose correspondingly by 10.2% to a total of EUR269.5 million. In addition to the early start to the season, stable business at workshops also had an impact, improving the business unit’s EBIT by EUR5.4 million. Following the previous year’s decline, EBIT totalled EUR3.3 million as per 31 March 2014. “Sentiment in agriculture is very positive. The good start to the new year is raising expectations for yields here in Germany. What’s more, the Ukraine crisis and the unstable weather conditions in the US are currently leading to an increase in grain prices on the global market. On account of global demand, we also expect stable, high prices going forward,” Klaus Josef Lutz explained. The Group’s fruit trading activities were successful on international markets. The business was boosted by high sales volumes at New Zealand majority holding Turners & Growers Limited from the current fruit harvest in the southern hemisphere. However, volumes sold from the German apple harvest in the fall of 2013 were below the prior-year figures. All in all, against the backdrop of stable prices, the Fruit business unit generated revenues of EUR115.8 million in the first quarter, nearly matching the previous year’s total (EUR119 million). Earnings were unable to match the previous year’s figures. The poor fruit harvest in Germany last year and lower trade margins meant that the operating result for the first quarter in 2014 came to EUR2.0 million, down by EUR1.9 million on the previous year’s figure. This shortfall in earnings is likely to be recovered over the course of the year with the help of the fruit business in the southern hemisphere. Due to the promising development of vegetation so far, high yields are expected in the upcoming German fruit harvest that will give the business unit extra impetus through to the end of the year. Project business with renewable energies bolsters Energy In the field of renewable energies, the Group profited from the double diversification of business activities by products and by regions. Lacklustre performance in trade with solar modules in Continental Europe was offset by the recovery of demand in the solar business in the US. In addition, the project development business of BayWa r.e. was successful. For example, three solar parks were commissioned in Germany and the UK with a total output of 30.8 MW. Revenues in the BayWa r.e. renewable energy business sector increased year on year by 30.2% to EUR96.0 million. The operating result fell by EUR2.5 million to EUR0.1 million, however, due to investments in new projects. “We will realise additional project sales over the remaining course of the year. We expect the framework conditions for the industry in Germany to improve as a result of the EEG amendment. Combined with the good international market development for renewable energies, we are optimistic that we will meet our targets in 2014,” Lutz estimated. In the traditional trading and distribution business, revenues fell in light of the good weather by 8.4% to EUR601.3 million, primarily as a result of the decline in heating oil prices and sales volume. Boosted by the dynamic development in agriculture and the construction sector in Germany, sales of fuels and lubricants rose. The business unit’s EBIT rose correspondingly year on year to EUR-0.3 million as per 31 March 2014 (2013: EUR-0.6 million). Building materials business benefits from mild weather Contact: Marion Danneboom, BayWa AG, Head of PR/Corporate Communication, tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98, e-mail: marion.danneboom@baywa.de End of Corporate News 08.05.2014 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
Language: | English | |
Company: | BayWa AG | |
Arabellastraße 4 | ||
81925 München | ||
Germany | ||
Phone: | 089/ 9222-3691 | |
Fax: | 089/ 9222-3698 | |
E-mail: | marion.danneboom@baywa.de | |
Internet: | www.baywa.de | |
ISIN: | DE0005194062, DE0005194005, | |
WKN: | 519406, 519400, | |
Indices: | SDAX | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart | |
End of News | DGAP News-Service |
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