06.08.2015
BayWa AG DE0005194062
DGAP-News: BayWa presents results for first half of 2015: Shift effects to the second half of the year indicate rise in earnings for 2015
DGAP-News: BayWa AG / Key word(s): Half Year Results
BayWa presents results for first half of 2015: Shift effects to the
second half of the year indicate rise in earnings for 2015
06.08.2015 / 10:30
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BayWa presents results for first half of 2015: Shift effects to the second
half of the year indicate rise in earnings for 2015
BayWa AG's reporting for the first half of 2015 is shaped by shift effects
into the second half of the year. The international trade and services
company therefore continues to anticipate increases in revenues and
earnings for the financial year 2015.
As at 30 June 2015, BayWa AG reported revenues of EUR7.4 billion (H1/2014:
EUR7.7 billion) and EBIT of EUR40.7 million (H1/2014: EUR62.1 million). "In
July 2015, we sold a wind farm in the US, which resulted in EUR20 million
in earnings," explained BayWa Chief Executive Officer Klaus Josef Lutz.
"This shift effect to the next quarter was essentially due to the fact that
we do not orient our project sales to the end of the respective quarter. As
a result, shortly after the close of the half-year period, our EBIT is at
the same level as the previous year." The wind farm and solar park project
business, which is part of renewable energies at BayWa AG, is performing
outstandingly overall and all signs point to a very good earnings situation
for 2015, Lutz continued.
There were further shifts in business elsewhere, particularly in the
agriculture sector. Although agricultural trade saw an increase in trading
volumes in the first six months of 2015, stagnating grain prices meant that
margins were extremely low, Lutz explained. "Prices rallied for a period of
time from mid-May. We used these to generate additional profit
opportunities in our trading business, but they are not going to have an
impact on our accounts until later on." In addition, the new BayWa trading
activities in South Europe still had to be established and were therefore
associated with corresponding start-up costs. "Well-filled order books in
international business, full silos in BayWa core regions with significant
marketing opportunities and the favourable overall trade conditions, such
as an average harvest and harvest forecasts with corresponding potential
for price rises, give us confidence that our performance in the second half
of the year will be strong," Lutz said, underlining his expectations that
BayWa AG will be able to boost its revenues and earnings year on year in
the financial year 2015. "We are also extremely satisfied with the
development of international fruit trading, which generated an increase in
earnings in the first half of the year."
Agriculture Segment: slight rise in revenues and stable EBIT year on year
In the first half of 2015, the Agriculture Segment, which comprises trading
in agricultural operating resources and produce as well as the agricultural
equipment and fruit business units, generated revenues of around EUR5.4
billion (H1/2014: EUR5.3 billion) and EBIT of roughly EUR65.0 million
(H1/2014: EUR66.2 million).
Development in agricultural trade was shaped on the one hand by the
record-breaking grain harvest in 2014/15, strong demand outside of Europe
and rising trading volumes, but also, on the other hand, low volatility and
correspondingly low margins. Revenues in the first half of the year came to
EUR4.43 billion (H1/2014: EUR4.37 billion); EBIT stood at EUR41.3 million
(H1/2014: EUR42.4 million). High grain inventories from subsequent
collection and storage business, the price rally at the end of the first
half of 2015 and full order books at BayWa mean that positive business
development is expected in the second six months of the year.
In the agricultural equipment business, yet another increase was recorded
in the sales of tractors, particularly of used machinery. As a result, the
agricultural equipment business unit posted a slight rise in revenues to
EUR649.2 million (H1/2014: EUR648.7 million) in the first half of 2015.
However, there is growing trend towards tractors with lower engine power,
which generate smaller margins. Due to the lower margins in the sales of
new machinery and increased infrastructure costs, EBIT came to EUR7.7
million (H1/2014: EUR11.2 million). As the agricultural equipment business
unit is bucking the overall market trend of falling demand in Germany and
continues to perform well, BayWa believes that this development will
continue into the second half of the year.
Fruit business at the Group benefited in the first half of the year from
the extremely positive southern hemisphere apple harvest and the activities
of New Zealand Group company T&G Global Limited (formerly: Turners &
Growers Limited), which strengthened its overall position by acquiring
Apollo Apples. There were major rises in the sales of fruit. In Germany,
the record-breaking 2014 harvest was sold off in full against the backdrop
of more solid prices in recent times. Fruit trading revenues rose in the
first half of the year to EUR295.9 million (H1/2014: EUR268.2 million).
EBIT climbed to around EUR16.0 million (H1/2014: EUR12.7 million). Given
the anticipated rise in prices on the back of a poorer harvest in Germany,
BayWa intends to match the success of the first half of the year in the
second six months of 2015.
Energy Segment: conventional energy generates major gains - BayWa r.e.
concludes lucrative project sale in July
The Energy Segment comprises the Group's trading activities in fossil and
renewable heating fuels, fuels and lubricants as well as its business in
renewable energies, which is pooled in BayWa r.e. renewable energy GmbH.
Due to the low price of oil and the postponement of the sale of a wind farm
project in the US, the Energy Segment posted lower year-on-year revenues in
the first half of 2015 of EUR1.3 billion (H1/2014: EUR1.6 billion) as well
as a year-on-year decline in EBIT to EUR-0.9 million (H1/2014: EUR17.5
million).
Conventional trading and distribution business recorded a mainly
price-related decline in revenues to EUR1.1 billion in the first half of
2015 (H1/2014: EUR1.3 billion). By contrast, there was a significant rise
in EBIT to EUR3.1 million (H1/2014: EUR0.7 million), which was partly due
to the increase in demand for heating oil and wood pellets.
In the renewable energies business, a number of solar and wind farms were
commissioned in Germany, elsewhere in Europe and in the US in the first
half of the year, some of which have also already been sold. In addition,
the company acquired project rights in North and South America, which will
fill the sales pipeline even further moving forward. Above all, the
postponed sale of a wind farm to the third quarter and more difficult
conditions in the sale of PV modules in Germany and the UK pushed revenues
in the first half of the year down to EUR256.8 million (H1/2014: EUR306.3
million) and EBIT to
EUR-3.9 million (H1/2014: EUR16.8 million). "Earnings in this area will
increase considerably in the second half of the year thanks to the sale of
the major project in the US in July and advanced negotiations on the sale
of further large-scale plants," Klaus Josef Lutz said.
Building Materials Segment: low-margin drop shipping business has impact on
first half of 2015
The Building Materials Segment mainly comprises BayWa Group trading
activities involving building materials in Germany and Austria. It was not
possible to fully compensate for the weather-related declines in sales from
the first quarter by the end of the first half of 2015. Revenues came to
EUR689.7 million (H1/2014: EUR724.9 million). One major contributing factor
here was that this year's building materials business did not gather pace
until after Easter, unlike in the previous year. In addition, the first
half of the year in the building materials business is always characterised
by lower-margin drop shipping business. This also had an impact on EBIT,
which came to EUR-1.5 million in the first half of the year (H1/2014:
EUR8.0 million). BayWa assumes that it will be possible to make up this
shortfall in the third quarter, as the BayWa Building Materials order books
are well filled and the recent favourable weather patterns have already
injected additional impetus into business activities.
Contact:
Marion Danneboom, BayWa AG, Head of PR/Corporate Communications,
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98,
e-mail: [email protected]
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06.08.2015 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: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart
End of News DGAP News-Service
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384127 06.08.2015
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