EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s): Half Year
Results
AGRANA: significant EBIT reduction in first half of 2024|25
10.10.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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AGRANA: significant EBIT reduction in first half of 2024|25
Sugar market in particular remains challenging
In the first half of the 2024|25 financial year, AGRANA, the fruit, starch
and sugar company, registered a significant year-on-year decrease of 49.0%
in operating profit (EBIT) to € 56.6 million. The Group’s revenue eased by
5.0% to € 1,861.7 million (H1 prior year: € 1,959.5 million). The
reduction in EBIT and revenue resulted from a decline in sales prices for
sugar and lower margins on starch and saccharification products compared
to the year before. The Fruit segment, on the other hand, delivered a very
satisfactory performance, with EBIT significantly above that of the
previous year. In the sugar market, the coming months will remain very
challenging. Strong initial harvest forecasts in Europe, coupled with
substantially risen imports from Ukraine, have in the past months led to
elevated supply, which in combination with flat demand has significantly
driven down sugar prices.
“The currently very adverse market situation will have a negative impact
on the earnings of the AGRANA Group for the 2024|25 financial year.
Although our diversified business model acts as a buffer against economic
swings, we continue to work at full speed on our Next Level strategy in
order to reduce our exposure to market volatility and increase our
baseline profitability. We have already initiated measures to this end,
including a comprehensive cost reduction programme both at the holding
company and segment level. In the volatile commodity markets where we
operate, cost leadership is crucial. On this front we intend to fully
leverage our existing potential,” says AGRANA CEO Stephan Büttner.
AGRANA Group financial results, first half of 2024|25 (1 March – 31 August
2024)
€ million, except as indicated
H1 2024|25 H1 2023|24
Revenue 1,861.7 1,959.5
EBITDA* 107.6 163.7
Operating profit before exceptional items** 55.3 112.7
Share of results of equity-accounted joint ventures 3.2 (2.2)
Exceptional items (1.9) 0.4
Operating profit (EBIT) 56.6 110.9
EBIT margin 3.0% 5.7%
Profit for the period 23.5 64.3
Investment*** 47.1 41.9
Q2 2024|25 Q2 2023|24
Revenue 917.4 993.4
EBITDA* 51.8 73.1
Operating profit before exceptional items** 25.3 47.8
Share of results of equity-accounted joint ventures 1.1 (0.4)
Exceptional items (2.1) 0.0
Operating profit (EBIT) 24.3 47.4
EBIT margin 2.6% 4.8%
Profit for the period 7.4 26.3
Investment*** 28.7 26.4
** EBITDA represents operating profit before exceptional items, results of
equity-accounted joint ventures, and operating depreciation and
amortisation
** Operating profit before exceptional items and results of
equity-accounted joint ventures
*** Investment represents purchases of property, plant and equipment and
intangible assets, excluding goodwill
The Group’s net financial items amounted to an expense of € 19.4 million,
down from a € 24.3 million net expense in the year-earlier period,
primarily as a result of significantly improved currency translation
differences, but also thanks to a moderate improvement in net interest
expense. After an income tax expense of € 13.7 million, corresponding to a
tax rate of 36.8% (H1 prior year: 25.8%), the Group’s profit for the
period was € 23.5 million (H1 prior year: € 64.3 million). Net debt as of
31 August 2024 stood at € 621.2 million, a decrease of € 14.9 million from
the year-end level of 29 February 2024. The gearing ratio (net debt to
total equity) at the quarterly balance sheet date was 50.9% (29 February
2024: 51.0%).
Fruit segment
€ million, except %
H1 2024|25 H1 2023|24
Revenue 824.5 791.1
Operating profit (EBIT) 50.4 43.7
EBIT margin 6.1% 5.5%
Q2 2024|25 Q2 2023|24
Revenue 408.9 390.0
Operating profit (EBIT) 23.4 19.3
EBIT margin 5.7% 4.9%
The Fruit segment’s revenue in the first half of 2024|25 was € 824.5
million, somewhat above the year-earlier amount. On the fruit preparations
side, revenue rose for volume reasons, while the increase in fruit juice
concentrate revenue was driven by volume and prices.
Fruit segment EBIT in the first six months grew to € 50.4 million, up
significantly from the first half of the previous year. The improvement
was due mainly to a positive business performance in fruit preparations in
Europe and Mexico. The fruit juice concentrate activities also recorded a
good EBIT result.
Starch segment
€ million, except %
H1 2024|25 H1 2023|24
Revenue 532.9 614.8
Operating profit (EBIT) 24.9 36.2
EBIT margin 4.7% 5.9%
Q2 2024|25 Q2 2023|24
Revenue 267.4 297.7
Operating profit (EBIT) 15.5 14.1
EBIT margin 5.8% 4.7%
Revenue in the Starch segment in the first half of 2024|25 was 13.3% below
the value of the year-earlier comparative period, when the war in Ukraine
had led to powerful increases in market prices. Owing to the decline in
raw material and energy prices, market prices for the segment’s products
decreased noticeably year-on-year, which affected the selling prices
obtained for the entire Starch portfolio.
At € 24.9 million, EBIT in the Starch segment was off significantly from
one year earlier. The key reason for this was the margin decline in starch
and saccharification products driven by significantly lower sales prices
for core and by-products.
In Austria, AGRANA was affected by the September flooding, which led to
temporary production stoppages at the starch plants in Pischelsdorf and
Gmünd. The financial impacts cannot yet be fully assessed at this time.
Sugar segment
€ million, except %
H1 2024|25 H1 2023|24
Revenue 504.3 553.6
Operating profit (EBIT) (18.7) 31.0
EBIT margin (3.7%) 5.6%
Q2 2024|25 Q2 2023|24
Revenue 241.1 305.7
Operating profit (EBIT) (14.6) 14.0
EBIT margin (6.1%) 4.6%
Sugar segment revenue in the first half of 2024|25 declined by a moderate
8.9% year-on-year, as the negative effect of lower sugar sales prices
could not be made up for by slightly higher sales volumes. The EBIT result
in the first half of the year fell markedly from a profit of € 31.0
million to a deficit of € 18.7 million. This reflected particularly the
significantly reduced sugar sales prices with the resellers channel.
The start of the sugar beet campaign at the two Austrian sugar plants and
other AGRANA sugar factories in Central and Eastern Europe was in some
cases delayed due to the floods in the middle of September. However, beet
processing has been underway at all sites since 4 October.
Outlook
As a result of the persistent challenges faced especially in the Sugar
segment, AGRANA continues to predict a significant reduction in Group
operating profit (EBIT) for the full 2024|25 financial year. Group revenue
is projected to show a moderate decrease.
Total investment across the three business segments in the 2024|25
financial year, at approximately € 120 million, will be moderately below
the 2023|24 value and only in line with depreciation of about € 120
million budgeted for 2024|25. Around 12% of this capital expenditure will
be for emission reduction measures in the Group’s own production
operations, as part of the AGRANA climate strategy.
About AGRANA
AGRANA converts agricultural raw materials into high-quality foods and
numerous industrial intermediate products. About 9,000 employees at 53
production sites worldwide generate annual Group revenue of approximately
€ 3.8 billion. Established in 1988, the company is the global market
leader in fruit preparations and the world’s leading producer of apple and
berry juice concentrates. As well, its Starch segment is a major
manufacturer of custom starch products (made from potato, corn and wheat)
and of bioethanol. AGRANA is the leading sugar producer in Central and
Eastern Europe.
For queries, please contact:
Markus Simak, Public Relations
+43 1 21137 12084, (1)markus.simak@agrana.com
Hannes Haider, Investor Relations
+43 1 21137 12905, (2)hannes.haider@agrana.com
This announcement is available in German and English at (3)www.agrana.com.
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10.10.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: AGRANA Beteiligungs-Aktiengesellschaft
F.-W.-Raiffeisen-Platz 1
A-1020 Wien
Austria
Phone: +43-1-21137-0
Fax: +43-1-21137-12926
E-mail: investor.relations@agrana.com
Internet: www.agrana.com
ISIN: AT000AGRANA3
WKN: A2NB37
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Munich, Stuttgart, Tradegate Exchange; Vienna Stock Exchange
(Official Market)
EQS News ID: 2005473
End of News EQS News Service
2005473 10.10.2024 CET/CEST
References
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1. mailto:markus.simak@agrana.com
2. mailto:hannes.haider@agrana.com
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