EQS-News: AGRANA achieves robust results in the 2023|24 financial year

EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s): Annual
   Results
   AGRANA achieves robust results in the 2023|24 financial year

   14.05.2024 / 07:30 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   AGRANA achieves robust results in the 2023|24 financial year

   2023|24 at a glance (year ended 29 February 2024)

   - Revenue: € 3,786.9 million (+4.1%; prior year: € 3,637.4 million)

   - Operating profit before exceptional items and results of
   equity-accounted joint ventures: € 176.6 million (+11.5%; prior year:
   € 158.4 million)

   - Operating profit (EBIT): € 151.0 million (+71.1%; prior year: € 88.3
   million)

   - Earnings per share: € 1.04 (+316.0%; prior year: € 0.25)

   - Equity ratio: 43.2% (prior year: 41.8%)

   - Dividend proposal for 2023|24: € 0.90 per share (dividend for 2022|23:
   € 0.90 per share)

    

   Revenue of the AGRANA Group grew by 4.1% in the 2023|24 financial year to
   € 3,786.9 million. Operating profit (EBIT) was € 151.0 million, fulfilling
   the guidance of a very substantial increase from the prior year. “Despite
   a continued volatile environment – in which we adapted well to the market
   dynamics of raw material and energy prices and sales volumes – we were
   able to significantly improve our results. The Fruit segment did well
   operationally; a downside factor in its operating profit was an impairment
   charge made necessary by the ongoing strained business trend in Asia. In
   the Starch segment, sales volumes and selling prices, and therefore also
   operating profit, fell significantly compared to the previous year as a
   result of the sluggish economy. The Sugar segment significantly improved
   its capacity utilisation and increased its sugar production volume from
   the year before. In spite of a decline in sugar sales volume due to
   increased imports from Ukraine, the sugar business was satisfactory,” said
   AGRANA CEO Stephan Büttner.

    

   AGRANA Group consolidated financial results

   € million, except as indicated

                                                                      Change
                                                FY 2023|24 FY 2022|23 % or pp
   Revenue                                      3,786.9    3,637.4    +4.1%
   EBITDA*                                      291.1      277.1      +5.0%
   Operating profit before exceptional items**  176.6      158.4      +11.5%
   Share of results of equity-accounted joint   1.4        18.7       –92.5%
   ventures
   Operating profit (EBIT)                      151.0      88.3       +71.1%
   EBIT margin                                  4.0%       2.4%       +1.6pp
   Profit for the period                        69.3       24.7       +181.0%
   Earnings per share (EUR)                     1.04       0.25       +316.0%
   Investment***                                127.3      102.9      +23.71%
   Number of employees****                      8,876      8,730      +1.67%

   * 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

   **** Average number of full-time equivalents in the financial year

    

   Net financial items amounted to an expense of € 53.3 million in the
   2023|24 financial year (prior year: net expense of € 26.5 million), with
   the deterioration driven primarily by an adverse change in net interest
   expense and, to a lesser degree, in currency translation effects
   (including the interest portion of currency swaps).

   Profit before tax grew very significantly from the previous year’s € 61.7
   million to € 97.7 million. After an income tax expense of € 28.3 million,
   representing a tax rate of 29.0% (prior year: 60.0%), the Group recorded a
   profit for the period of € 69.4 million (prior year: € 24.7 million).
   Profit for the period attributable to shareholders of AGRANA was € 64.9
   million (prior year: € 15.8 million); earnings per share rose to € 1.04
   (prior year: € 0.25).

   Total assets as of 29 February 2024, at € 2,889.4 million, eased slightly
   from one year earlier (28 February 2023: € 3,003.1 million), with an
   equity ratio of 43.2% (28 February 2023: 41.8%). Net debt as of
   29 February 2024, at € 636.1 million, was € 48.8 million less than at the
   2022|23 year-end. The gearing ratio (net debt to total equity) thus eased
   to 51.0% at the balance sheet date (28 February 2023: 54.5%).

   In line with the long-term orientation of AGRANA’s dividend policy of
   continuity, the Management Board will propose to the Annual General
   Meeting to pay a dividend of € 0.90 per share for the year (dividend for
   2022|23: € 0.90 per share).

    

   Fruit segment

   € million, except %

                           FY 2023|24 FY 2022|23
   Revenue                 1,566.9    1,481.9
   Operating profit (EBIT) 60.2       (38.5)
   EBIT margin             3.8%       –2.6%

   Revenue in the Fruit segment grew by 5.7% year-on-year. This was due to
   price increases in fruit preparations, as well as higher sales volumes in
   this business.

   The Fruit segment’s EBIT result turned to a profit of € 60.2 million
   (prior year: loss of € 38.5 million), lifted both by the non-recurrence of
   a prior-year goodwill impairment and by the significantly improved
   operating performance. A negative effect on EBIT in 2023|24 came from an
   impairment loss of € 18.7 million on property, plant and equipment in
   China and Japan that was due to the difficult economic situation there and
   the resulting adverse business trend in Asia. 

    

   Starch segment

   € million, except %

                           FY 2023|24 FY 2022|23
   Revenue                 1,148.7    1,293.8
   Operating profit (EBIT) 50.4       80.2
   EBIT margin             4.4%       6.2%

    For the Starch segment, the 2023|24 financial year was characterised by
   reduced demand and mounting pressure on prices. The inflation-induced
   reluctance to spend and customers’ destocking led to a decline in sales
   volumes compared to the prior year. Selling prices also fell
   significantly, due to declining raw material prices.

   As a result, revenue in the Starch segment decreased by 11.2% from the
   previous year’s all-time high. About half of the decline was due to prices
   and half to volume effects. The most pronounced revenue reduction was seen
   in ethanol, as Platts prices fell significantly amid higher import
   volumes.

   These effects led to a significant year-on-year reduction in Starch
   segment EBIT to € 50.4 million (prior year: € 80.2 million).

    

   Sugar segment

   € million, except %

                           FY 2023|24 FY 2022|23
   Revenue                 1,071.3    861.7
   Operating profit (EBIT) 40.4       46.6
   EBIT margin             3.8%       5.4%

   Revenue in the Sugar segment rose 24.3% from the year before. In 2023|24,
   sales prices in both the reseller business (wholesalers and retailers) and
   in the industrial sector were above the previous year’s average.

   The increasing competition from Ukraine affected especially the Romanian,
   Hungarian and Bulgarian sugar markets. To offset significantly lower sales
   volumes in the home markets, export activities were intensified.

   Operating profit in the Sugar segment decreased to € 40.4 million (prior
   year: € 46.6 million) due to significant lost sales and a smaller profit
   contribution by the AGRANA-Studen joint venture than one year earlier.

    

   Outlook

   As already communicated in the third-quarter publication in January 2024,
   AGRANA has been facing an increasingly challenging business environment
   since the fourth quarter of 2023|24 and is forecasting significantly lower
   EBIT for the 2024|25 financial year than the level achieved in 2023|24.
   This earnings decline will already become evident in the first quarter of
   2024|25. Group revenue is projected to show a slight reduction for the
   full year.

   Total investment across the three business segments in the 2024|25
   financial year, at approximately € 120 million, is expected to be
   moderately below the 2023|24 value and in line with budgeted depreciation
   of about € 120 million. Around 12% of this capital expenditure will be for
   emission reduction measures in the Group’s own production operations under
   the AGRANA climate strategy. The goal is to reduce the Group’s own
   emissions to net-zero by 2040. By 2050, the AGRANA Group is committed to
   reaching net-zero emissions across its entire value chain.

    

   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
   € 3.8 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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   14.05.2024 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: 1901869


    
   End of News EQS News Service


   1901869  14.05.2024 CET/CEST

References

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