Baywa’s fruit division has seen revenue increase 167 per cent on last year, aided by its take-over of major New Zealand agri-business, Turners & Growers.
The group’s fruit division posted US$246m in revenue for the first half of the year, while earnings before income taxes (EBIT) for the period were up more than five times on last year's figures to US$12.8m.
“The fruit business result rose through the contribution of New Zealand’s participation in many ways,” the company stated in its quarterly report.
According to Fresh Fruit Portal, the report stated that while record production volumes in Germany reduced profit margins last season New Zealand achieved good prices for its fruit.
“The summer/fall fruit harvest in Germany is expected to be rather average once again, meaning that sales margins will probably increase,” the report continued.
German fresh produce news service Fruchthandel reported that Baywa chairman Klaus Josef Lutz said the company was confident Turners & Growers would continue to grow in step with the Asian markets.
“The half-year results clearly exceeded our expectations,” he said.