Cefetra once again for sale: 'turnaround' is needed

Rotterdam trading company Cefetra, which has once again been put on display by BayWa after the sale to the First Dutch Group failed, needs a decent 'turnaround', just like the parent company. That is at least the impression when you look at the company's performance in recent years. The Rotterdam-based company profited during the midst of the cCoronavirus pandemic and due to the Russian invasion of Ukraine from the volatility in the grain market and concerns about food security, but the company saw the traded volume of grains and oilseeds – which is still the core activity – steadily decline. And now that the commodity markets have returned to a slightly more normal situation, not much is being earned anymore. Revenue is slipping away, profits are evaporating, and the workforce is steadily growing. Shifting markers Intended buyer Peter Goedvolk would pay €125 million for the acquisition of the company, but he would have quite a bit of work to do to get the business up and running again if he had secured the financing. Now it is up to a new buyer to shift the markers. Last year, the revenue of the Cefetra Group, as the subsidiary has been called since 2021 – fell to €4.8 billion, while the earnings before tax (EBIT) amounted to -€0.3 million. According to the parent company BayWa, revenue continued to decline in the first half of 2025. Compared to the same period last year, the revenue was €100 million lower at €2.2 billion. However, the result was slightly better. The loss decreased from -€7.7 million to -€6.3 million. According to reports from Baywa, the red figures should particularly be attributed to two relatively new acquisitions: Cefetra Dairy and nut trader H. Brüning. The first company incurred losses due to a butter strategy that was overtaken by the market developments in butter, it has been reported. Brüning also faced negative margin developments. Grains becoming less important This does not have to remain the case, of course. What is striking is that the Cefetra Group has increasingly diversified in recent years. From a classic grain trader, founded by and having been in the hands of Dutch cooperatives for more than 100 years, it has, under the ownership of BayWa (also originated as a cooperative company), increasingly diversified in recent years. Still focused on other agricultural products, but grains themselves became less important. In 2021, for example, the company traded about 22 million tons of grains. By 2023, that had decreased to 16 million tons, while the trend continues to decline. In parallel with the increasing diversification at Cefetra Group, the workforce has also increased enormously, from 438 in 2018 to 750 last year. The development of the number of employees did not keep pace with the results. Perhaps the thinking behind the diversification was not wrong, but the results do not support that. It is also questionable whether the management of Cefetra can be held responsible for the increasingly broad range of activities. At BayWa, Cefetra was part of the focus area of one of the top managers, and they distinguished themselves in recent years by an almost unstoppable drive for expansion. Until things collapsed last year. It is now up to the new buyer to get things back on track at Cefetra. Reportedly, after First Dutch Group, another Dutch buyer is interested.