EQS-News: Good start to 2022|23 financial year: AGRANA on track despite difficult market environment
EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s): Quarter
Results/Quarterly / Interim Statement
Good start to 2022|23 financial year: AGRANA on track despite difficult
market environment
07.07.2022 / 07:30
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
Good start to 2022|23 financial year: AGRANA on track despite difficult
market environment
First quarter of 2022|23 at a glance
• Revenue: € 886.3 million (Q1 prior year: € 705.8 million)
• EBIT: € 51.6 million (Q1 prior year: € 20.9 million)
• EBIT margin: 5.8% (Q1 prior year: 3.0%)
• Profit for the period: € 36.1 million (Q1 prior year: € 12.1 million)
• Equity ratio: 51.0% (28 February 2022: 48.5%)
In the first quarter of the 2022|23 financial year (the three months ended
31 May 2022), AGRANA, the fruit, starch and sugar company, as expected
achieved very significant growth in operating profit (EBIT), from € 20.9
million to € 51.6 million. The Group’s revenue rose to € 886.3 million (Q1
prior year: € 705.8 million). “Despite a difficult market environment, we
are on track in the 2022|23 financial year. We have so far coped well with
the challenges of increased market volatility created by the war in
Ukraine,” notes AGRANA Chief Executive Officer Markus Mühleisen. While the
hikes in energy prices weighed on production operations in all business
segments, the bottom line was buoyed by a very positive performance in the
ethanol business, which contributed to a strong increase in EBIT in the
Starch segment. Significantly, the Sugar segment too, after a prolonged
period below break-even, was able to generate positive quarterly EBIT
again. In the Fruit segment, EBIT expanded thanks particularly to a better
performance in the fruit juice concentrate business. “Our aim at AGRANA is
to be a reliable buyer of raw materials from farmers and a stable supplier
to our customers. Inflation poses a challenge for every participant in the
value chain, and so we first try to exhaust all available efficiencies in
our own activities. We only raise sales prices when we are left with no
other choice,” explains Mühleisen.
Results in each business segment for the first quarter of 2022|23
FRUIT segment
Revenue in the Fruit segment, at € 360.7 million, was significantly higher
than one year earlier (Q1 prior year: € 320.7 million). Revenue both in
the fruit preparations and fruit juice concentrate businesses expanded for
price reasons. The segment’s EBIT was € 19.9 million (Q1 prior year:
€ 15.9 million). Earnings in fruit preparations were moderately below the
prior year’s level; this was attributable mainly to a mixed business
performance in the Europe region (including Ukraine) and Asia-Pacific. A
very significant upward jump in operating profit in the fruit juice
concentrate business was made possible especially by the improved
contribution margins of apple and berry juice concentrate from the 2021
crop.
STARCH segment
The Starch segment’s revenue of € 319.1 million was up strongly from the
same quarter of the year before (Q1 prior year: € 234.6 million). The war
in Ukraine intensified the disruptions in commodity and energy markets.
AGRANA’s continuing top objective was to maintain supply chains and
production throughout and ensure reliable deliveries to customers. Extreme
increases in raw material and energy costs made it necessary to pass on
the rise in manufacturing costs to customers through sales price
adjustments. The key driver of the revenue growth was the steep climb in
ethanol prices compared to the same period last year. The very significant
increase in EBIT to € 29.3 million (Q1 prior year: € 11.5 million) was
driven by the high-margin ethanol business unit and the fact that input
commodities (including energy) were generally still hedged.
SUGAR segment
Revenue in the Sugar segment, at € 206.5 million, rose very significantly
from the previous year (Q1 prior year: € 150.5 million). The reasons were
markedly increased sales volumes with resellers and industrial customers,
and significantly higher selling prices. EBIT was € 2.4 million, a
pronounced improvement from the still negative result of the year-earlier
period (Q1 prior year: loss of € 6.5 million). This was due to
significantly increased margins thanks to an improved sales price
environment.
The detailed financial results are provided in the interim statement for
the first quarter of 2022|23 at [1] https://www.agrana.com/en/ir/.
Outlook
For the full 2022|23 financial year, AGRANA expects a very significant
increase in operating profit (EBIT). Group revenue is projected to show
significant growth. This forecast is based on the assumption that the war
in Ukraine is temporary and remains regionally limited, that the physical
supplies of energy and raw materials are ensured and that the Group’s
target markets and procurement markets partially return to normal within
the 2022|23 financial year. AGRANA also expects and assumes that it will
be able to pass on the significant price increases (seen especially in raw
materials and energy) through new customer contracts.
Total investment across the Group this year, at approximately € 115
million, is to exceed the 2021|22 level, while running below this year’s
budgeted depreciation of about € 120 million.
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
€ 2.9 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.
This announcement is available in German and English at [2] www.agrana.com.
For queries, please contact:
Markus Simak
Public Relations
+43 1 21137 12084
[3]markus.simak@agrana.com
Hannes Haider
Investor Relations
+43 1 21137 12905
[4]hannes.haider@agrana.com
══════════════════════════════════════════════════════════════════════════
07.07.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com
══════════════════════════════════════════════════════════════════════════
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: 1392185
End of News EQS News Service
1392185 07.07.2022
References
Visible links
1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=5de0a565921079c5bab18e32a7423c91&application_id=1392185&site_id=apa_ots_austria&application_name=news
2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=1e9fc8e25cf59422832045870b8bd971&application_id=1392185&site_id=apa_ots_austria&application_name=news
3. markus.simak@agrana.com
4. hannes.haider@agrana.com
OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS. www.ots.at
© Copyright APA-OTS Originaltext-Service GmbH und der jeweilige Aussender