EANS-News: AGRANA Beteiligungs-AG / Operating profit more than doubled in 2009|10

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Wien (euro adhoc) - The 2009|10 financial year (ended 28 February 2010) of
AGRANA, the sugar, starch and fruit group, was marked by a combination of volume
growth and lower sales prices. As the increase of 16.7% in sales volume from the
prior year could not fully make up for the price effect, Group revenue in
2009|10 eased slightly by 1.8% to EUR 1.99 billion (prior year: EUR 2.03
billion). The largest revenue contribution was generated by the Fruit segment,
at about 41%, followed by Sugar at approximately 34% and Starch at about 25%,
broadly in line with the proportions of the previous year.

Group operating profit before exceptional items more than doubled from EUR 37.8
million in the prior year to EUR 91.9 million, driven above all by stabilised
earnings in fruit juice concentrates, the direction in raw material markets and
a satisfactory trend in the profitability of the Starch segment. In the prior
year a write-down on apple juice concentrate inventories had weighed on the
result. The biggest contributor to the Group´s pre-exceptionals operating
profit was the Starch segment, at approximately 45%, versus about 39% for Fruit
and 16% for Sugar.

Exceptional items amounted to an expense of EUR 5.0 million (prior year: expense
of EUR 3.2 million) and related to the relocation of the AGRANA Fruit holding
company and the goodwill write-down from the already completed closure of the
plant in Kaplice, Czech Republic. Operating profit after exceptional items thus
expanded to EUR 86.9 million in the 2009|10 financial year (prior year: EUR 34.6
million).

Net financial items improved from the prior year´s net finance expense of EUR
67.1 million to net finance income of EUR 0.5 million in 2009|10 thanks to
currency translation gains and lower interest payments resulting from the
reduction in net debt.

As a result, profit before tax increased to EUR 87.4 million from the prior
year´s pre-tax loss of EUR 32.4 million. After taxes, the AGRANA Group recorded
profit for the period of EUR 72.7 million (prior year: loss for the period of
EUR 15.9 million).

"AGRANA delivered solid results for the 2009|10 financial year, when you
consider the economic environment. Although 2009 saw the recession reach the
bottom of the trough, we successfully defied this trend and improved our
financial results. Consistent with the Group´s aim of dividend continuity, the
Management Board and Supervisory Board will recommend to the Annual General
Meeting to pay a dividend of EUR 1.95 per share," says Johann Marihart, Chief
Executive Officer of AGRANA Beteiligungs-AG.

Key financials
2009|10 2008|09
Revenue EURm 1,989.2 2,026.3
Operating profit before exceptional items EURm 91.9 37.8
Exceptional items EURm (5.0) (3.2)
Operating profit after exceptional items EURm 86.9 34.6
Profit before tax EURm 87.4 (32.4)
Profit/(loss) for the period EURm 72.7 (15.9)
- Attributable to equity holders of AGRANA 72.2 (11.6)
Beteiligungs-AG 0.5 (4.3)
- Minority interests
Earnings per share EUR 5.08 (0.82)
Purchases of property, plant and equipment EURm 48.4 73.8
and intangibles1
Staff count 7,927 8,244

1 Excluding goodwill

Investment (excluding financial investments) was further reduced in the 2009|10
financial year as planned, from EUR 73.8 million in the prior year to EUR 48.4
million. In all segments, the capital expenditure consisted largely of
replacement investment; in the Fruit segment, it additionally included mainly
production expansion projects in Russia, the USA, Argentina and Austria.

Revenue by segment
2009|10 2008|09
Sugar segment EURm 684.1 702.5
Starch segment EURm 499.2 519.4
Fruit segment EURm 805.9 804.4
AGRANA Group revenue EURm 1,989.2 2,026.3

SUGAR SEGMENT
In the Sugar segment, total sales volume rose while revenue eased by 2.6% to EUR
684.1 million (prior year: EUR 702.5 million). Against the backdrop of the EU
sugar regime, after having surrendered quota, AGRANA registered a decrease in
quota sugar sales as budgeted coupled with lower sales prices. The sales
quantities of non-quota sugar grew thanks to a good crop and the development of
new export markets.

The Sugar segment generated an operating profit of EUR 15.2 million before
exceptional items (prior year: EUR 15.8 million). With the EU sugar market
reform concluded, AGRANA is clearly well-positioned strategically, particularly
as many Eastern European countries where AGRANA holds important market positions
became net importers.

STARCH SEGMENT
Although higher volumes of starch products were sold, revenue eased just under
4% to EUR 499.2 million (prior year: EUR 519.4 million) as a result of the
adjustment of sales prices to reflect raw material costs. Revenue in the
bioethanol business expanded as lower ethanol prices were more than offset by
the full utilisation of the bioethanol plants in Austria and Hungary and by
sales of the main co-product, ActiProt, a high-protein feed.

Starch segment operating profit before exceptional items increased to EUR 41.1
million (prior year: EUR 27.5 million), reflecting improved margins and the
earnings contribution from the bioethanol activities, which have passed the
establishment stage and are now profitable.

FRUIT SEGMENT
Revenue in the Fruit segment, at EUR 805.9 million, was steady (prior year: EUR
804.4 million). Fruit preparations revenue (accounting for about 80% of Fruit
segment revenue) essentially matched the prior-year level despite a slight
volume increase. By developing new markets, the effect of significantly lower
selling prices was balanced through higher sales volumes of fruit juice
concentrates.

Amid the absence of the prior year´s write-down on inventories of apple juice
concentrate and thanks to various efficiency gains and reorganisation measures
in the year under review, the Fruit segment´s result before exceptional items
improved to a profit of EUR 35.7 million (prior year: loss of EUR 5.5 million
before exceptional items).

OUTLOOK
AGRANA currently expects Group revenue for 2010|11 to remain steady at the
2009|10 level.

In the Sugar segment, quota sugar sales show a trend of restricted growth as a
consequence of the European production quota. With the production of non-quota
sugar, AGRANA plans to ensure the full capacity utilisation of its sugar
plants. The normalisation in the world market price for sugar should help
stabilise the sales situation of the raw sugar refining operations in Romania
and Bosnia-Herzegovina.

In the Starch business, the commodities market segment is expected to reflect
the business cycle by growing at a reduced rate, while the specialties side of
the market is forecast to have relatively better growth.

For fruit preparations, it is anticipated that the good volume trend will
continue. In addition to innovation-driven growth in established markets and
capacity expansion in high-potential markets like Russia, the opening up of new
regions such as North Africa and the Middle East is being furthered by starting
a joint venture in Egypt. For fruit juice concentrates, further volume gains
are projected both in new regional markets and on the strength of an expanded
product portfolio.

Operating profit before exceptional items can be expected to show the
continuing positive effect of the optimisation measures taken in 2010|11 and
thus to surpass the 2009|10 result.
The budgeted capital expenditure of about EUR 55 million represents a level
below depreciation, thus further reducing financing requirements.

Further inquiry note:
Investor Realtions:
Mag. Maria Fally
Tel.: 01-21137-12905
[email protected]

Public Relations:
Mag. Ulrike Pichler
Tel.: 01-21137-12084
[email protected]
end of announcement euro adhoc
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issuer: AGRANA Beteiligungs-AG
Donau-City-Straße 9
A-1220 Wien
phone: +43-1-21137-0
FAX: +43-1-21137-12045
mail: [email protected]
WWW: www.agrana.com
sector: Food
ISIN: AT0000603709
indexes: WBI, ATX Prime
stockmarkets: Präsenzhandel: Berlin, Frankfurt, Stuttgart, official market: Wien
language: English

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