07.11.2013
BayWa AG DE0005194062
DGAP-News: BayWa AG: Internationalisation ensures growth in revenues and income - strong final quarter expected
DGAP-News: BayWa AG / Key word(s): Quarter Results
BayWa AG: Internationalisation ensures growth in revenues and income -
strong final quarter expected
07.11.2013 / 10:30
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BayWa AG: Internationalisation ensures growth in revenues and income -
strong final quarter expected
'We remain on our success course,' said Klaus Josef Lutz, Chief Executive
Officer of BayWa AG, summarising the increases in revenues and income at
BayWa after the first nine months of financial year 2013. Lutz also
anticipates a strong fourth quarter and further improvement to the BayWa
result in 2013.
Revenues as per 30 September 2013 climbed to just under EUR12.2 billion
(previous year: EUR7.9 billion), while EBIT increased by 40% to EUR177.7
million. Excluding one-off effects largely resulting from this year's
property sales, BayWa generated operating EBIT of EUR133.8 million
(previous year: EUR125.4 million).
'Our international agricultural activities were the cornerstone of our
third-quarter results,' Lutz pointed out. Agricultural equipment and the
domestic fuel and lubricant trading business also fared well. Only the
Building Materials Segment failed to match year-on-year figures due to
extreme weather conditions in the first half of the year. Largely thanks to
the BayWa Group's international activities, this trend in the Building
Materials Segment was able to be compensated for in total third-quarter
earnings. 'This proves that our expansion strategy is making BayWa
weatherproof in every sense of the word and is reducing its reliance on
regional market development,' said Lutz.
The Chief Executive Officer anticipates a final-quarter push in almost all
BayWa business areas. The Renewable Energies business unit is set to record
substantial growth before the end of the year, after a total of three wind
parks were sold in the UK and Germany in early October. According to Lutz,
EBIT in this business unit is already certain to exceed the 2012 figure of
EUR32.5 million.
Due to the increased sales volume from the 2013/14 harvest and the
forecasted stability in grain prices, agricultural trade − especially in
traditional BayWa sales regions − is likely to take another leap forward.
In the Building Materials Segment, recovery effects will depend on the
onset of winter and available capacity in the construction industry.
'Business development so far, coupled with the current framework conditions
in the Agriculture and Energy Segments, gives the BayWa Group a solid basis
from which we can reach new heights in terms of revenues and earnings as
the financial year draws to a close,' said Lutz, summarising the outlook
for the rest of 2013.
Agriculture: International participations driving result
In the Agriculture Segment, which comprises trading in agricultural
resources and produce as well as the Agricultural Equipment and Fruit
business units, BayWa succeeded in generating revenues of EUR8.3 billion in
the first nine months of the current financial year (previous year: EUR3.8
billion). EBIT also developed very well, coming in at EUR103.3 million as
per 30 September 2013 (previous year: EUR81.8 million).
This major rise in revenues and EBIT is largely the result of the initial
consolidation of Cefetra B.V. and Bohnhorst Agrarhandel GmbH in the current
financial year. In addition, New Zealand fruit-trading company Turners &
Growers Limited (T & G) is also contributing to full-year segment earnings
in 2013 for the first time.
In the Agricultural Trade business unit, revenues as per 30 September 2013
climbed to just under EUR6.9 billion (previous year: EUR2.5 billion), while
EBIT rose significantly year on year to EUR66.1 million (previous year:
EUR50.6 million). Aside from the expansion of business activities in
trading in agricultural products and operating resources through new
acquisitions Cefetra and Bohnhorst, Agricultural Trade also prospered from
above-average harvests in BayWa sales regions, as anticipated. A low
willingness to sell was observed among farmers at the beginning of the
harvest phase due to the lower producer prices compared to 2012; however,
this then increased over the course of the third quarter as a result of the
rallying wheat price. In addition, solid development in the trade of
operating resources also supported positive business development. The
decline in fertiliser prices stabilised this business over the course of
the summer, and low prices are also likely to trigger further buying
interest in the fourth quarter of the year.
Demand in the Agricultural Equipment business unit remained brisk and
pushed revenues up to EUR981.7 million as per 30 September 2013 (previous
year: EUR941.6 million). Sales of new tractors and workshop services
increased year on year, and the expansion of sales specialisation with the
two brands AGCO and CLAAS also had a positive impact. Even though the
associated hiring of new staff goes hand in hand with cost increases, EBIT
was able to keep pace with revenue development in the reporting quarter and
make up for the weather-related shortfall from the first half of the year.
At EUR16.2 million, EBIT is at around the same level after nine months as
in the previous year (EUR16.6 million).
In the Fruit business unit, the Group benefitted from the international
business activities of New Zealand fruit-trading subsidiary T & G. The
prices for apples from this year's southern-hemisphere harvest were higher
than in the previous year. What's more, further impetus resulted from
higher demand for fruit from the southern hemisphere caused by the
weather-related delay to the European harvest. Given that German trade
activities also recorded rising year-on-year prices for dessert apples
during the marketing of the previous year's harvest, revenues stood at
EUR450.0 million after nine months of the current financial year (previous
year: EUR350.2 million). The full-year inclusion of T & G's earnings
contributions led to a significant year-on-year increase in EBIT, which
rose to EUR21.0 million as per 30 September 2013 (previous year: EUR14.6
million).
Energy: Renewable energies on course - heating business shaped by low
heating oil price
The Energy Segment comprises the Group's trading activities in fossil and
renewable fuels and lubricants as well as its business in renewable
energies, which is pooled in BayWa r.e. renewable energy GmbH. Overall, the
segment's revenues fell slightly year on year, primarily as a result of a
decline in heating oil prices. In the first nine months of the current
reporting year, the segment generated revenues of EUR2.5 billion (previous
year: EUR2.7 billion). EBIT stood at EUR17.7 million as per 30 September
2013, down around 30% year on year. However, this was mainly due to the
fact that the successful sale of three wind parks in the UK and Germany
will only become effective in the fourth quarter.
The segment was able to sell greater quantities in the heating business and
in in fuels and lubricants trading in the first nine months of financial
year 2013 as against the previous year. The year-on-year decline in heating
oil prices had a particularly positive impact on demand and led to
increases in sales. Lubricant sales benefitted from the general recovery of
the German economy and also increased. BayWa rallied against the general
market trend and achieved growth of around 4% in petrol and diesel sales
volume. Revenues in the conventional energy business fell to around EUR2.2
billion (previous year: EUR2.4 billion), primarily as a result of falling
heating oil prices compared to the previous year. However, thanks to the
positive development of margins in the filling station business in
particular, EBIT rose significantly to around EUR7.5 million as per 30
September 2013 (previous year: EUR5.8 million).
Revenues in the Renewable Energies business unit stood at EUR289.2 million
after the first nine months of 2013, down slightly year on year (previous
year: EUR300.7 million). As an increasing number of initial investments had
to be made as part of the expansion of the systems planning business and,
above all, the planned sale of three wind parks with total output of 42.7
megawatts was only realised in the fourth quarter, EBIT as per 30 September
2013 came to EUR10.2 million (previous year: EUR19.2 million). 'Thanks to
the proceeds from the sale of these three wind parks, we have already
ensured that EBIT for 2013 in the renewable energies business will exceed
the previous year's figure of EUR32.5 million,' Lutz said. Lutz also stated
that BayWa will continue to put a great deal of effort into the
international diversification of its renewable energies business. In light
of falling sales of photovoltaic components after cuts to subsidies in
continental European markets, but robust demand for solar modules in the
US, the Chief Executive Officer believes that the strategy has proven its
worth.
Building Materials: Shortfall from first half of year almost completely
recovered - low-margin products impacting results
The Building Materials Segment mainly comprises the Group's building
materials trade in Germany and Austria. Third-quarter sales almost fully
compensated for weather-related declines in the first half of the year. The
warm, dry summer had a particularly positive effect on this segment. As a
result, revenues after nine months of the current financial year fell just
short of the previous year's figures, coming in at around EUR1.28 billion
(previous year: EUR1.32 billion). Since construction and civil engineering
have seen the greatest demand − especially for low-margin mass building
materials such as concrete, steel and bricks − the recovery effect was not
as high: EBIT came to EUR12.8 million as per 30 September 2013 (previous
year: EUR23.1 million). Traditionally, the fourth quarter sees an increase
in the share of special building materials sales for building extensions
and refinement with correspondingly higher trade margins. Provided weather
conditions do not hamper construction activity, the result in the Building
Materials Segment could increase substantially in the fourth quarter.
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: [email protected]
End of Corporate News
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07.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: BayWa AG
Arabellastraße 4
81925 München
Germany
Phone: 089/ 9222-3691
Fax: 089/ 9222-3698
E-mail: [email protected]
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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