The acquisition of New Zealand company Apollo Apples helped raise fruit sales for BayWa AG (DE: BYW6) in the first quarter, but challenging market conditions brought down profits by 55% year-on-year.

Part of the 11.2% revenue rise to €128.8 million was also attributed to a high availability of goods in the European market.

The company said narrow margins in the German fruit business, caused by the price trend, were behind the fall in the fruit division's EBIT to €900,000.

"New Zealand also postponed the start of the season by some three weeks. However, recovery can already be observed in this respect through the start to the marketing phase in the southern hemisphere," the company said in its results.

The board was not fazed by the fall in profits, emphasizing the company's international fruit trade had been strengthened by the acquisition of Apollo Apples, with good opportunities in the coming months following weather-related delays.

"This is further confirmation that our internationalisation in agricultural trade is bearing fruit and the latest market entries are already strengthening the BayWa network," said CEO Klaus Lutz.

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