BayWa's midway financials boosted by company's renewable energy business

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BayWa was cooing over the 18.4% rise in its EBIT for its H1 results, which was driven by a significant rise in its renewable energies business. Seeing that this area of its business is showing serious promise, the company projects that a recent expansion into South East Asia could prove highly beneficial in the financials to come.

Breaking down the companies rise in EBIT for H1 2016, BayWa recorded a H1 figure of €55.3 million, which is up 18.4% from €46.7 million during the same period in 2015. The company was right to commend its renewable energies business for this increase, as it shot up from -€3.9 million in H1 2015, to €15.7 million for H1 2016.

One of the outstanding reasons for this was the sale of solar parks and wind farms in the U.K. and Germany. Looking forward to the second half of the year, the company recently completed its largest ever solar project, the 45 MW “Vine Farm” in the U.K., which it sees as a good prospect for future earnings.

To drive the rise in the company’s EBIT was a slight rise in BayWa’s overall revenues. For H1 2016, the company recorded revenues of €7.5 billion up from €7.4 billion during the same period last year. However, the company’s renewable energy segment recorded a significantly higher rise of 23.1% from H1 2015, making up €316.1 million of the company’s total business.

“Our internationalization and diversification in our core areas of business once again guaranteed BayWa’s positive earnings development,” said BayWa CEO Klaus Josef Lutz. Going on to say that the company’s business with renewable energies more than compensated for the effects of a difficult agricultural market environment.

While be coy on specific projections for the rest of the year, the company said that it expects to finish the year with better financial results than in 2015. One development that was cited was the company’s strategic decision to expand its renewable energies business in South East Asia, by setting up a new branch in Bankok.

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