DGAP-News: BayWa AG / Key word(s): Quarter Results
BayWa AG: Typical seasonal start - Good prospects for 2015
07.05.2015 / 09:31
---------------------------------------------------------------------
BayWa AG: Typical seasonal start - Good prospects for 2015
The first quarter of 2015 was shaped by typical weather conditions for
BayWa AG, after the international trade and services group had benefitted
from the extremely mild winter in the previous year. As at 31 March 2015,
revenues fell just short of the 2014 figure at EUR3.4 billion (Q1/2014:
EUR3.6 billion). Earnings before interest and tax (EBIT) came to EUR-6.4
million (Q1/2014: EUR4.3 million). Significant recovery effects are
expected in fertiliser, fruit and building materials trade in the coming
spring months. The outlook for renewable energies is just as positive,
thanks to promising project development.
"It was a typical start to the season, with our business in operating
resources and building materials picking up a little later in the quarter
than in the exceptional year 2014," explained Chief Executive Officer of
BayWa AG, Klaus Josef Lutz.
Major recovery in exports, coupled with high availability of goods due to
the record-breaking harvest in 2014/15, enabled BayWa to generate strong
trade business in the first quarter of 2015. BayWa has already been able to
profit from the expansion of its international presence in Southern Europe
and its trade activities in target markets in the Middle East and North
Africa. International fruit trade, which has been strengthened by the
acquisition of New Zealand apple company Apollo Apples since late 2014,
anticipates good sales opportunities in the coming months following
weather-related delays. "This is further confirmation that our
internationalisation in agricultural trade is bearing fruit and the latest
market entries are already strengthening the BayWa network," explained
Lutz. The outlook remains positive in the area of renewable energies. "Our
development in the first quarter was stable, and now we can look forward to
full order books for solar and wind parks in the current financial year,"
said Lutz.
Weak euro and record-breaking harvests boost trade - Winter weather delays
operating resources business
In the first quarter of the financial year 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 roughly EUR2.5 billion (Q1/2014: EUR2.6 billion). This equates
to a decline of 2.2%, which was predominantly caused by the significantly
later start to the operating resources season compared to 2014. This
offsetting effect is also reflected in the operating result (EBIT), which
was down by 29.7% on the unusually high 2014 figure at EUR20.1 million
(Q1/2014: EUR28.6 million).
Agricultural trade business was shaped by strong business from the
subsequent collection and storage of the harvest in Germany and a high
international trading volume. Good availability of goods and a favourable
export climate thanks to the weak euro allowed BayWa to make a successful
start to the grain and oilseed trading year. The BayWa Group's
internationalisation strategy has also gained further momentum thanks to
the successful entry into the Italian, Spanish and Portuguese markets and
the expansion of trading activities for target markets in the Middle East
and North Africa.
The delayed start to the season is having a major impact on trade with
operating resources such as fertiliser, seed and crop protection in
Germany: Demand for these products was already brisk in the first quarter
of 2014 due to the unusually mild weather conditions, but trading volumes
in the reporting period in 2015 are much lower. Agricultural trade recorded
revenues of EUR2.2 billion (Q1/2014: EUR2.2 billion) with EBIT of EUR19.8
million (Q1/2014: EUR23.3 million)
Agricultural equipment revenues are at an extremely high level overall,
which was just able to be matched in the first quarter of 2015. In terms of
sales, the business unit benefitted from high levels of orders on hand in
2014 and was able to maintain its sales figures for new and used tractors
despite the decline in investment propensity in the agricultural industry
across the country. Total revenues came to EUR262.5 million in the first
quarter, marginally down on the previous year (Q1/2014: EUR269.5 million).
EBIT fell from EUR3.3 million in 2014 to EUR-0.5 million in the reporting
period as a result of market-related pressure on margins.
Group fruit trading saw revenues rise by 11.2% to EUR128.8 million
(Q1/2014: EUR115.8 million) This was due on the one hand to high goods
availability in the European market, coupled with the inclusion of New
Zealand apple company Apollo Apples in the consolidated financial
statements. EBIT declined year on year to EUR0.9 million (Q1/2014: EUR2.0
million), primarily as a result of the narrow margins in German fruit
business caused by the price trend. Weather-related delays to the apple
harvest in New Zealand also postponed the start of the season by some three
weeks. However, recovery can already be observed in this respect through
the start to the marketing phase in the southern hemisphere.
Strong heat market sales - BayWa r.e. successful worldwide
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.
The Energy Segment's revenues experienced a price-related decline of 6.1%
to EUR654.9 million year on year (Q1/2014: EUR697.4 million). The operating
result (EBIT) came to EUR1.1 million (Q1/2014: EUR-0.2 million). The EUR1.3
million rise in EBIT resulted from stable development at BayWa r.e. as well
as an improved market environment for conventional energy business.
Conventional energy carriers recorded a major decline in prices as a result
of the fall in the price of oil. For BayWa, this trend was reflected in a
decline in revenues of 11.6% to EUR531.3 million (Q1/2014: EUR601.3
million). The attractive price level in the winter boosted sales figures.
Sales of heating oil and wood pellets rose by 39% and 24% respectively,
allowing BayWa to generate an above-average operating result (EBIT) of
EUR1.2 million (Q1/2014: EUR-0.3 million).
In terms of renewable energies, the Group benefitted from positive
development in photovoltaic project business, particularly in the UK. Here,
the national subsidy programme was extended until March 2016. In the first
quarter of the year, solar parks with a total output of 85 megawatts (MW)
were commissioned. The costs for the realignment of German photovoltaic
trade business were compensated for by the sale of the Polmaugan solar park
(4.9 MW) in the UK. All in all, the expansion of international business
activities caused revenues to rise to EUR123.6 million (Q1/2014: EUR96.0
million). The operating result (EBIT) remained practically on a par with
2014 levels at EUR-0.1 million (Q1/2014: EUR0.1 million). Given the current
project pipeline, expectations in terms of BayWa r.e.'s business
development in 2015 are positive overall.
Building materials business down year on year due to weather conditions
The Building Materials Segment comprises Group trading activities involving
building materials in Germany and Austria. Weather-related restrictions
meant that building materials trade was more subdued in the first quarter
of 2015 than in the unusually positive previous year. Rainfall hindered
outdoor construction work and therefore the so-called direct supply for
products such as roof tiles and paving stones. BayWa was able to partly
compensate for the weak overall start to the season in the industry thanks
to optimised freight and fleet processes. In the first quarter of the year,
revenues fell in in the Building Materials Segment by 10.2% to EUR250.2
million (Q1/2014: EUR278.6 million). The typical loss in terms of the
operating result (EBIT) was at a moderate level of EUR-17.3 million
(Q1/2014: EUR-13.3 million).
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: marion.danneboom@baywa.de
---------------------------------------------------------------------
07.05.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP 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
ArabellastraÃe 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: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------
354375 07.05.2015
DGAP-News: BayWa AG: Typical seasonal start - Good prospects for 2015
| Source: EQS Group AG