German conglomerate BayWa has released its results for the first nine months of 2016, with EBIT and revenue increasing compared with the same period of 2015.
The company said in its report that EBIT had climbed 3.3 per cent to €85.4m, with revenues up to to €11.4bn from €11.1bn by the end of September, boosted by the performance of the company's international fruit business.
“The international fruit business and global renewable energy activities were able to compensate for the agricultural market developments, which continue to be difficult, and ensured that the result after nine months was up slightly on the previous year,” said Klaus Josef Lutz, chief executive of BayWa AG.
International fruit trading made a 'significant contribution' to the rise in revenues, the group said, benefiting from TFC Holland being included in the scope of consolidation for the first time, as well as its trading activities in tropical fruits and higher export volumes from New Zealand company T&G Global Limited to Asia in particular.
As it was possible to achieve price increases during the marketing season in the Southern Hemisphere, EBIT for the fruit business unit as of 30 September 2016 also rose year-on-year.
Despite the strong result that fruit delivered, the agriculture segment as a whole after the first nine months fell short of the previous year’s level due to the difficult developments outlined in agricultural trade and the expected decline in the agricultural equipment business.
Looking ahead to 2017, Lutz said that apart from continued positive performance in particular with renewable energies and fruit, “we are already beginning to see good indications in the agricultural industry that agricultural trading will improve again next year.”
In connection with the positive development at the moment concerning the availability of goods, national trading in 2017 promises to have a solid basis from which to start, Lutz explained. In international agricultural trade, BayWa seeks to enhance profitability within its own trade network and leverage opportunities through further market consolidation.
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