June 8, 2012

Germany's Agravis targets US$7.48-billion sales

The German agro-dealer Agravis Raiffeisen AG is still growing and is aiming for nearly EUR6 billion (US$7.48 billion) worth of sales in the current fiscal year.

In the current fiscal year, the first steps have already been accomplished in this direction according to CEO Dr Clemens Grosse Frie, who sketched a positive trend: "With around EUR2 billion (US$2.49 billion) in sales in the first four months we are exactly on budget and I am confident of achieving a good result above the EUR6 billion (US$7.48 billion) mark."

Despite the uncertainties in terms of the coming harvest, the business of Agravis marches well with the German farmers.

Because of clear frosts at the beginning of the year, which had far-reaching consequences for the crop development, and drought in some regions, agricultural experts had to adjust their crop estimates for 2012 in a downward direction.

Also with earnings before taxes of about EUR36 million (US$44.87 million), the company intends to continue the positive trend from last year.

Grosse Frie formulated a few long-term goals: "We have every intention of increasing turnover in 2015 to ½ billion and to EUR8 billion (US$9.97 billion) in 2020. At the same time we want to achieve a return on equity of at least 10% permanently."