News 2350 views last update:6 Aug 2012

Company update: Agravis Raiffeisen AG

An important segment of German Agravis Raiffeisen AG is the production of feed for livestock. The company completed fiscal year 2011 with annual sales of €6.5 billion and earnings before taxes of more than €48 million.

Good results and positive numbers were the focus of the press conference of Agravis Raiffeisen AG (Münster / Hanover, Germany).
CEO Dr. Clemens Große Frie and CFO John Schulte-Althoff pointed with pride to the fact that sales of agricultural trade and service in the previous year had grown by about 20% to almost €6.5 billion.

Profit before tax rose even more: After €29 million in 2010 to more than €48 million in calendar year 2011. The shareholders will benefit from a dividend of 6% on the good result.

Agriculture, agribusiness is, according to Große Frie, a major industry with great potential and challenges: "The agricultural industry is currently experiencing a high level of attention - with risks and opportunities," he said.

The mega trends of higher world food demand, increased energy demand and increasing demand for raw materials make Agravis rely on a stable market and business development in the coming years and decades, Große Frie added.

Investment policy pays off

In 2011, the six divisions Agravis: plants, animals, machinery, construction, markets and energy were able to conclude the fiscal year positively, mainly caused by good market signals and the strong willingness of farmers and contractors to invest.

Also company investments paid off: "In 2011, investments were again significantly higher than depreciation," Große Frie underlined.

In total, implemented in 2011, investments were around € 65 million, depreciation and amortization amounted to € 42 million. "In the current fiscal year, with a planned €60 million investment will continue at a high level."

The strong position of Agravis as Germany's second largest agro-dealer will be supported by a sound financial basis.

CFO John Schulte-Althoff evaluated the strengthening equity in times of financial and debt crisis as an important building block for the economic success of the company: "The equity ratio rose to 25.4% in 2011 and is currently at around € 343 million. Thus, equity has almost doubled since the start of Agravis in 2004."

For 2012, Agravis and its will go with "cautious optimism and great attention" to work. "We wants and will keep our business level in 2012," said Dr. Clemens Große Frie said with confidence.

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