EQS-News: AGRANA NEXT LEVEL: Supervisory Board approves new group strategy
EQS-News: AGRANA NEXT LEVEL: Supervisory Board approves new group strategy
EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s): Strategic
Company Decision
AGRANA NEXT LEVEL: Supervisory Board approves new group strategy
12.11.2024 / 12:50 CET/CEST
The issuer is solely responsible for the content of this announcement.
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AGRANA NEXT LEVEL: Supervisory Board approves new group strategy
Annual cost savings potential: € 80 – 100 million
Today, AGRANA Beteiligungs-AG’s Supervisory Board approved AGRANA NEXT
LEVEL, the new Group strategy presented by the Management Board. The
implementation of the measures it details will significantly increase
AGRANA’s competitiveness in the future and is the company’s response to
challenges such as economic uncertainty, geopolitical crises, high raw
material volatility and increasing cost pressure. The strategy focuses on
system change and profitable growth, and aims to reduce the company’s
dependency on market volatility as well as increase its basic
profitability.
The core element of AGRANA NEXT LEVEL is the transformation of the AGRANA
Group into a streamlined, strategic holding company with two strategic
business units: “Agricultural Commodities & Specialities” and “Food &
Beverage Solutions”. This reorganisation will enable the Group to pool its
expertise in a targeted manner and make greater use of existing synergy
potential both in terms of markets and costs. The resulting annual savings
potential, which will be fully effective from the 2027|28 financial year
onwards, amounts to approximately € 80 – 100 million and is an integral
part of AGRANA NEXT LEVEL.
All the details required to realise the savings effects resulting from
AGRANA NEXT LEVEL will be worked out in detail by the end of the current
financial year 2024|25 and then implemented step by step.
AGRANA CEO Stephan Büttner: “AGRANA NEXT LEVEL is our roadmap through a
multitude of challenges that will affect our employees, customers,
suppliers and owners alike. The transformation of our company is designed
to make our organisation more effective and agile in future. With this new
strategy, we’re responding to current challenges while also proactively
shaping our future. We’ll achieve cost and market synergies, which will
strengthen our profitability and increase our scope for future profitable
growth. By systematically implementing our portfolio strategy and focusing
on innovation, we’ll lead AGRANA into a successful future.”
In addition to structural transformation, sustainability remains a central
component of AGRANA’s NEXT LEVEL strategy. We’re on track to achieve
net-zero emissions (Scope 1+2) by 2040; and Scope 3 by 2050 at the latest.
“This commitment is not only part of our social responsibility, but also a
strategic imperative to remain competitive in the long term. We’ll have
invested more than € 600 million in sustainable technologies and energy
efficiency by 2040 to ensure that AGRANA meets the requirements of the
Paris Agreement on climate change,“ emphasises CEO Büttner.
The new role of the holding company
In future, AGRANA Holding will focus on the strategic direction of key
areas, including strategy and transformation, human resources management,
IT, procurement and operations excellence. Operational services are being
combined to ensure efficient management of the Group. Consolidating
similar functions and streamlining structures avoids redundant processes
and ensures simpler, more efficient workflows.
A new role for the divisions
In order to combine the competencies of the AGRANA Group effectively and
to align them with the market as well as create cost synergies, the
company’s structure will be transformed into a more functional and
permeable business model. While four companies (divisions) will remain
under the holding company, they will be strategically combined into two
business units, “Agricultural Commodities & Specialities” (sugar, starch,
fruit juice concentrate) and “Food and Beverage Solutions” (fruit flavour,
brown flavour & spicy preparations, flavourings, syrups, sauces) to better
meet the different management requirements.
“Agricultural Commodities & Specialities” will focus on cost efficiency,
from raw material purchasing to production due to the broad
standardisation of products and high competitive pressure. This business
unit will build on its strength of having a regional footprint with its
proximity to raw materials and proven expertise in raw material
management.
In future, the low margins resulting from the dependence of raw material
processing on agricultural cycles, climate and market conditions will be
counteracted by optimising processes and technologies. The structural
similarities between sugar and starch production offer great synergy
potential, which AGRANA will be exploiting by aligning production and
maintenance processes, as well as by intensifying technology transfer (for
example, in emission-reducing energy systems).
In “Food and Beverage Solutions”, management focuses on developing
innovative solutions for and with industrial customers. Here, AGRANA can
draw on its market leadership in fruit preparations with a global
footprint, worldwide customer proximity and innovative strength. The focus
is on customer-specific, value-added products and the co-creative
development of customised solutions with customers in the food and
beverage industry. This higher level of innovation will lead to products
with stronger margins and better opportunities for differentiation in
global markets. In particular, the “Ice Cream”, “Food Service” and
“Flavours” customer segments will be further promoted. The existing
collaboration between AGRANA Fruit and AUSTRIA Juice in product
development will be intensified, for example by using AUSTRIA Juice’s
flavour expertise for dairy products.
“AGRANA NEXT LEVEL is not just the name of our new strategy; it’s the
philosophy for the future of our entire organisation. The strategy was
developed by the AGRANA management team with the support of external
expertise and the diligent work of an internal project team, to whom I’d
like to express my sincere thanks. We’re taking many valuable things with
us from our almost forty-year company history and we’re leaving some
things behind us as we enter a new era. Knowing that we have a strong team
of many outstanding colleagues, we’re confident that the transformation
we’ve begun will be a success story and that we’ll continue to succeed as
we chart our course into the future,” concludes CEO Stephan Büttner.
About AGRANA
AGRANA converts agricultural raw materials into high-quality foods and a
numerous industrial intermediate products. Around 9,000 employees at 53
production sites worldwide generate annual Group revenue of around € 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 also a major
manufacturer of custom 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 press release is available in German and English at
[3] www.agrana.com.
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12.11.2024 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: 2028157
End of News EQS News Service
2028157 12.11.2024 CET/CEST
References
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1. markus.simak@agrana.com
2. hannes.haider@agrana.com
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