EQS-News: AGRANA grows profit in first six months and remains on track
EQS-News: AGRANA grows profit in first six months and remains on track
EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s): Half Year
Results
AGRANA grows profit in first six months and remains on track
12.10.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Results for the first half of 2023|24 (ended 31 August 2023)
AGRANA, the international fruit, starch and sugar group, generated revenue
of € 1,959.5 million in the first half of the 2023|24 financial year, an
increase of 9.3% year-on-year (H1 prior year: € 1,792.3 million).
Operating profit (EBIT) jumped to € 110.9 million (H1 prior year: € 11.1
million*).
“AGRANA has adjusted well to the new market dynamics, particularly in raw
material and energy prices. This is reflected in a good performance in the
first half of the year. Especially the Fruit segment – where business was
very good in fruit preparations for the food service industry and in the
fruit juice concentrate activities – and the Sugar segment, with strong
summer demand from the beverage industry, performed well,” emphasises
AGRANA Chief Executive Officer Markus Mühleisen. In the Starch segment,
AGRANA is dealing with a sluggish economy and with inventory reduction by
customers in Europe. Adjustments in AGRANA’s production kept margins
stable in starch products, but earnings in the ethanol business fell
sharply from the comparative period due to significantly lower market
prices. This led to an overall decline in the Starch segment’s EBIT in the
first half of the year.
AGRANA Group consolidated financial results
€ million, except %
H1 2023|24 H1 2022|23
Revenue 1,959.5 1,792.3
EBITDA** 163.7 141.2
Operating profit before exceptional items*** 112.7 86.5
Share of results of equity-accounted joint ventures (2.2) 13.5
Exceptional items 0.4 (88.9)
Operating profit (EBIT) 110.9 11.1
EBIT margin 5.7% 0.6%
Profit/ (loss) for the period 64.3 (17.0)
Investment**** 41.9 35.7
Q2 2023|24 Q2 2022|23
Revenue 993.4 906.0
EBITDA** 73.1 69.1
Operating profit before exceptional items*** 47.8 41.6
Share of results of equity-accounted joint ventures (0.4) 6.9
Exceptional items 0.0 (89.0)
Operating profit (EBIT) 47.4 (40.5)
EBIT margin 4.8% (4.5%)
Profit for the period 26.3 (53.1)
Investment**** 26.4 24.4
* EBIT in the first half of the prior year (2022|23) included an
impairment charge on assets and goodwill in the Fruit segment of € 91.2
million.
** 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 € 24.3 million,
up from a € 10.2 million net expense in the year-earlier period, as a
result of adverse changes primarily in net interest expense and (to a
lesser extent) in currency translation differences. After an income tax
expense of € 22.3 million, corresponding to a tax rate of 25.8% (H1 prior
year: >100%), the Group’s profit for the period was € 64.3 million (H1
prior year: loss of € 17.0 million). Total assets, at € 2,808.6 million as
of 31 August 2023, were moderately lower than at the 2022|23 year-end
balance sheet date, and the equity ratio was 44.4% (28 February 2023:
41.8%). Net debt as of 31 August 2023 stood at € 779.6 million, an
increase of € 94.7 million from the year-end level of 28 February 2023.
Fruit segment
€ million, except %
H1 2023|24 H1 2022|23
Revenue 791.1 727.5
Operating profit (EBIT) 43.7 (60.0)
EBIT margin 5.5% (8.2%)
Q2 2023|24 Q2 2022|23
Revenue 390.0 366.8
Operating profit (EBIT) 19.3 (79.9)
EBIT margin 5.0% (21.8%)
Fruit segment revenue grew by 8.7% from the first half of the prior year.
The revenue expansion occurred both in the fruit preparations and fruit
juice concentrate businesses and resulted from price changes. EBIT of the
segment as a whole was a profit of € 43.7 million in the first half of the
financial year (H1 prior year: loss of € 60.0 million). In the prior-year
comparative period, following an impairment test at 31 August 2022,
non-cash impairment on assets and goodwill was recognised in exceptional
items as part of EBIT.
In fruit preparations, the item “operating profit before exceptional items
and results of equity-accounted joint ventures” was very significantly
above the year-ago level. The improvement was attributable mainly to a
positive business performance in the Europe region (including Ukraine) and
in North America. The fruit juice concentrate business further grew its
earnings significantly compared to the already very good year-earlier
period. This was driven primarily by improved contribution margins of
apple juice concentrates made from the 2022 crop.
Starch segment
€ million, except %
H1 2023|24 H1 2022|23
Revenue 614.8 655.3
Operating profit (EBIT) 36.2 56.7
EBIT margin 5.9% 8.7%
Q2 2023|24 Q2 2022|23
Revenue 297.7 336.2
Operating profit (EBIT) 14.1 27.4
EBIT margin 4.7% 8.1%
Revenue in the Starch segment in the first half of 2023|24 was moderately
below the value of the year-earlier comparative period, in which the war
in Ukraine had led to powerful increases in market prices. In recent
months, there was a normalisation in starch market prices due to declining
energy and raw material prices, with an impact on the sales pricing of the
entire starch product portfolio. Selling prices for ethanol fell
significantly, owing to a steep year-on-year drop in Platts quotations.
This was the main reason why EBIT in the Starch segment, at € 36.2
million, was down significantly year-on-year.
Sugar segment
€ million, except %
H1 2023|24 H1 2022|23
Revenue 553.6 409.5
Operating profit (EBIT) 31.0 14.4
EBIT margin 5.6% 3.5%
Q2 2023|24 Q2 2022|23
Revenue 305.7 203.0
Operating profit (EBIT) 14.0 12.0
EBIT margin 4.6% 5.9%
The Sugar segment’s revenue in the first half of 2023|24 was up 35.2% from
one year earlier. This growth, achieved despite lower sales volumes, was
driven by a substantial rise in sugar selling prices. The price trend was
very positive both in the reseller business (wholesalers and retailers)
and the industrial market. This trajectory was also reflected in strong
EBIT growth.
Outlook
For the full 2023|24 financial year, AGRANA expects a very significant
increase in operating profit (EBIT). Group revenue is projected to show
moderate growth.
Total investment across the three business segments in the 2023|24
financial year, at approximately € 140 million, should exceed both the
2022|23 level and this year’s budgeted depreciation of about € 120
million. Around 14% 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 55
production sites worldwide generate annual Group revenue of approximately
€ 3.6 billion. Established in 1988, the company is the world market leader
in fruit preparations and the foremost producer of fruit juice
concentrates in Europe. 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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12.10.2023 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: 1746875
End of News EQS News Service
1746875 12.10.2023 CET/CEST
References
Visible links
1. markus.simak@agrana.com
2. hannes.haider@agrana.com
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