BayWa, a Munich-based company with the focus on building materials, energy, and agricultural sector, announced its partnership with Spruce Finance to provide finance products for its solar distribution clients in the US. The new product offers homeowners and contractors easy and inexpensive solar loans.
The company said its dealers across the US will have access to loan products from Spruce Finance, which helps them to improve their businesses as well as permits clients to manage their energy options. BayWa assists independent business contractors to create robust sales and also improve their installation potential.
The loans enable BayWa's dealers to boost their cash flow and also improve their pipeline management while at the same time providing smart loans to homeowners. Boaz Soifer, chief executive officer of BayWa Solar System LLC said, "Spruce's loans are a great addition to our finance program. They will allow independent installers to grow with fewer constraints and compete with larger national players."
According to Reuters, stocks of BayWa indicated 2% lower. The group anticipated its 2016 operating profit to improve minutely, on a significant revenue growth.
On Thursday, the German-based firm reported an increase in its annual earnings before interest and tax (EBIT) to €158.1 million from €152.1 million in the previous year. The company's revenue for 2015 amounted to €14.9 billion, down by 1.8% from €15.2 billion in 2014. The fall in annual revenue was due to the record low prices of raw components.
The company's growth in EBIT was helped by the strong performance in the renewable energies project business in the domestic and foreign markets. In addition, internationalisation of the country's agricultural industry also contributed to EBIT growth in 2015.
The company's agricultural business registered a revenue of €10.2 billion in 2015, up from the €10.1 billion in the previous year. However, the annual EBIT from the sector declined to €87.2 million from the €107.8 million in 2014. Revenues from the energy arm dropped to €3.3 billion from the €3.5 billion in the previous year, hurt mainly by weak oil prices. EBIT totalled €77.2 million in 2015, up from the €42.3 million in 2014.
Renewable energies business recorded a revenue of €1.02 billion, up from the €786.2 million in 2014. EBIT also increased to €61.8 million from €36.5 million in the previous year. The company's Board will propose a dividend increase to €0.85 from €0.80 a share.
Meanwhile, WealthCap has purchased the new headquarters of BayWa in Munich. The property was acquired from Competo Capital and BayWa AG for €280 million, according to property magazine. Andreas Helber, chief financial officer of BayWa, said there is a growing demand for the company's headquarters and that the selection process for a right buyer seemed difficult.
The company is implementing various monetary policies to strengthen its business portfolio. The current finance scheme mirrors BayWa's effort to build a strong relationship with its customers.
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