BayWa’s fruit trading division has reported a strong start to 2015, with first quarter revenues climbing 11.2 per cent in due to the rise in European apple production and its acquisition of New Zealand’s Apollo Apples.
The company’s overall first quarter revenue reached €3.4bn, down from €3.6bn for the same period of 2014. Earnings before interest and tax were €6.4m compared with €4.3m in the year-earlier period.
BayWa said that after benefitting from last year’s extremely mild winter, trading during the first quarter had been shaped by normal weather conditions. It noted that a major recovery in exports, coupled with the record-breaking apple harvest in 2014/15 had enabled it to generate strong business in the first quarter.
“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,” said COO Klaus Josef Lutz.
Group fruit trading saw revenues rise by 11.2 per cent to €128.8m, up from €115.8m in 2014. This was due on the one hand to abundant European supplies, coupled with the inclusion of New Zealand apple company Apollo Apples in the consolidated financial statements. EBIT declined year on year to €0.9m from €2.0m in 2014, 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.
BayWa noted that the acquisition of New Zealand apple company Apollo Apples in late 2014 had strengthened its international fruit business, and it anticipated 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,” Lutz explained.
The company said significant recovery effects were expected in fertiliser, fruit and building materials trade in the coming months, while the outlook for renewable energies was equally positive thanks to promising project development.
“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,” the company said in a statement.
