DGAP-News: BayWa AG: International expansion makes for new record figures

DGAP-News: BayWa AG: International expansion makes for new record figures

DGAP-News: BayWa AG / Key word(s): Final Results
BayWa AG: International expansion makes for new record figures

27.03.2014 / 10:00


BayWa AG: International expansion makes for new record figures

BayWa AG, Munich, has increased its earnings year on year once again in
2013: The international trading and services company recorded revenues of
just under EUR16 billion (2012: EUR10.5 billion) and earnings before
interest and taxes (EBIT) of almost EUR222 million (2012: EUR186.8 million)
for the recently completed financial year 2013. The successful year is also
due to be reflected in the dividend: The Board of Management will put
forward a proposal to the Annual General Meeting of Shareholders on 17 June
2014 to raise the dividend by EUR0.10 to EUR0.75 per share.

According to Chief Executive Officer Klaus Josef Lutz, the financial year
2013 represented a "milestone in over 90 years of history at BayWa". "Over
half of our revenues originate from our international business," said Lutz
at the presentation of the figures in Munich. "Only through the strategy of
growth in our core areas of agriculture and renewable energies are we able
to record such success today and propose to raise the dividend further."
The companies acquired at the end of 2012, Cefetra B.V. and Bohnhorst
Agrarhandel GmbH, have been successfully integrated into BayWa's operating
business in just one year, said Lutz. He added that this step will pave the
way for the coming years. In 2013, operating EBIT rose to just under EUR196
million (2012: EUR169 million). The full-year inclusion of New Zealand
fruit company Turners & Growers Limited in the reporting year, as well as
the initial consolidation of Cefetra and Bohnhorst (from the end of May
2013), made a major contribution to this result. BayWa financed the
acquisitions primarily through the sale of properties, which brought in
roughly EUR290 million last year.

The CEO believes that BayWa is on firm footing for 2014: Agricultural trade
is showing promising development in the first few months of the year, Lutz
said. The same applies to the renewable energies business, including good
progress in the realisation and sale of wind power plants in the USA. Given
that building materials also made a positive start to the year and BayWa
will split from its building materials locations in North Rhine-Westphalia
midway through 2014, Lutz assumes that "we are also moving in the right
direction in terms of improving our operating figures in this segment". For
the current financial year, Lutz announced that further acquisitions are
due to be completed and prepared for, above all in the agricultural
industry. "We want to increase our international growth," said Lutz. "As we
were quick to adapt to globalised markets, we are able to drive forward the
expansion and restructuring of BayWa AG in an extremely targeted and
risk-aware manner."

Agriculture: Revenues doubled through internationalisation
The Agriculture Segment was able to generate significant growth in its
three business units - Agricultural Trade, Fruit and Agricultural Equipment
- both in terms of revenues and EBIT: Revenues climbed to just roughly
EUR10.7 billion (2012: EUR5.1 billion). EBIT came in at EUR123.5 million
(2012: EUR91.0 million).

In Agricultural Trade, revenues and EBIT developed unusually well through
the acquisition of Cefetra and Bohnhorst, especially in the case of grain
and oilseed: Turnover quintupled in the reporting year from 5.4 million
tonnes in 2012 to roughly 25.5 million tonnes. Revenues were able to be
more than doubled to roughly EUR8.9 billion (2012: EUR3.4 billion). EBIT
rose significantly to EUR80.4 million (2012: EUR54.3 million).

The Fruit trading business was also very positive, particularly as a result
of good harvest marketing and rising harvest volumes in New Zealand.
Consequently, revenues grew to EUR567.7 million (2012: EUR468.3 million).
EBIT climbed to EUR21.6 million (2012: EUR17.9 million).

"All in all, the three major agricultural acquisitions in the last two
years have had an extremely positive effect on BayWa's result," explained
Klaus Josef Lutz.

Gains were also able to be made in Agricultural Equipment in 2013: Revenues
stood at roughly EUR1.3 billion (2012: EUR1.2 billion). EBIT climbed to
EUR21.4 million (2012: EUR18.9 million). Agricultural Equipment benefited
from the high willingness to invest among farmers and was able to expand
its service business even further.

Energy: Heating oil sales up in Germany - Renewable projects continue to be
very successful

The Energy Segment generated revenues of EUR3.5 billion in 2013 (2012:
EUR3.7 billion). EBIT rose to EUR45.1 million (2012: EUR43.0 million).

Business with conventional energy carriers profited, particularly in
Germany, from increased heating oil sales (roughly 4%) due to the cold
weather in the first quarter of 2013, although oil prices fell. As a
result, revenues were down marginally to EUR3.0 billion (2012: EUR3.2
billion); EBIT remained stable in a shrinking market at EUR10.6 million
(2012: EUR10.5 million).

Once again, renewable energies business developed positively, primarily as
a result of international diversification. Revenues rose to roughly
EUR485.9 million (2012: EUR440.8 million); EBIT stood at EUR34.5 million
(2012: EUR32.5 million). Project development for wind and solar parks in
Europe and in the USA was mostly responsible for the successful
development. Finished plants were able to be sold successfully: Wind parks
with a capacity of just under 27 megawatts (MW) were sold in the UK alone.
In 2013, work also began in France on the largest solar park in company
history with an overall capacity of 45.4 MW. While solar module business in
Europe and Germany decreased, BayWa recorded gains in the USA. "In Germany,
we intend to be one of the main beneficiaries of market consolidation in
the solar module business over the next few years," explained Lutz. "We are
flexible, product- and brand-neutral and can also offer key services."

Building Materials: 2013 shaped by unseasonal weather
Extremely unfavourable weather conditions in the first half of 2013 had a
major effect on business in the Building Materials Segment. Recovery in the
second half of the year was unable to compensate for this trend. Revenues
were down slightly year on year at EUR1.70 billion (2012: EUR1.74 billion).
EBIT fell to EUR27.0 million (2012: EUR35.4 million). The primary reason
for the substantial decline in EBIT is that low-margin transport business
increased in the second half of the year, while higher-margin warehouse
business was unable to experience the same kind of recovery. "Overall, we
are not satisfied with the result in building materials," said Lutz.
"Structural problems were exacerbated by unfavourable weather conditions in
the first half of 2013." As a result, BayWa is to split from its regionally
oriented locations in North Rhine-Westphalia on 1 June 2014 as announced,
as these locations have failed to meet expectations. In the building
materials trade, BayWa will concentrate on its core regions. "We are
confident that we have laid the foundations for sustained improvement in
this business unit's operating business from 2015", the CEO said.

Marion Danneboom, BayWa AG, Head of PR/Corporate Communication, 
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98, 
e-mail: marion.danneboom@baywa.de 

End of Corporate News


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Language:    English                                                    
Company:     BayWa AG                                                   
             Arabellastraße 4                                           
             81925 München                                              
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:      Regulierter Markt in Frankfurt (Prime Standard), München;  
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,      
End of News    DGAP News-Service  
259912 27.03.2014                                                      
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