AGRAVIS: Emphasising corporate features in difficult times
AGRAVIS Raiffeisen AG lost consolidated turnover in 2016 – mainly price driven and as a result of the sale of three companies to Ceravis AG – but has by no means lost in terms of consistency, efficiency and effectiveness. “As exhausting as the challenges were, in fiscal year 2016, AGRAVIS once again proved that it is in a position to set corporate and strategic priorities in tough times – by making substantial investments in regional locations, through successful cooperation, solid acquisitions, and wise alliances and targeted expansion in internationalisation.
- Bildmaterial zum Content
- AGRAVIS emphasises corporate features in difficult times (from left): Board of Directors member Johannes Schulte-Althoff, Andreas Rickmers, Chairman of the Board of Directors, and Bernd Homann, Head of Corporate Communication, introduced the developments of the 2016 financial year at the annual press conference in Münster.
We know where we stand,” is how the new AGRAVIS Raiffeisen AG CEO, Andreas Rickmers, judged the 2016 fiscal year, which Johannes Schulte-Althoff discussed at the company's financial press conference. In total, the AGRAVIS Group has succeeded in realising around €6.2 billion in 2016 – around 11 percent less than in 2015. Earnings before taxes amounted to €41.6 million, which is also around 8 percent lower than in the previous year. On the other hand, equity capital rose significantly by €567 million (plus 10 percent) and the equity ratio rose to 31.3 percent.
“The decline in turnover was due to the price development for important agricultural products and price decreases for crude oil and important agricultural resources, such as fertilizer and crop protection. In addition, as of 1 January 2016, we sold three companies in the AGRAVIS Group in Schleswig-Holstein and Mecklenburg-Western Pomerania to Ceravis AG – sales volume: around €300 million. The lower level of turnover also has a negative impact on earnings before taxes, which is at the lower end of our expectations. In reviewing the financial year overall and in light of the circumstances described earlier, we are satisfied with what has been achieved. But not any more than that. We had hoped for more, but the market has not allowed for any more,” Schulte-Althoff, Chief Financial Officer, clearly stated.
Despite the decline in turnover, however, the company wants to maintain its solid dividend policy and will propose a dividend of 5 percent at the Annual General Meeting on 11 May in Alpen/North Rhine-Westphalia. “Doing this also emphasizes our reliability and soundness in difficult markets.”