EANS-News: AGRANA registers significant earnings reduction for first three
quarters of 2018|19
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Corporate news transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is responsible for the content of this announcement.
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Quarterly Report
Vienna - First three quarters of 2018|19 at a glance
* Revenue: EUR 1,863.5 million (-7.3%; Q1-Q3 prior year: EUR 2,010.6 million)
* EBIT: EUR 63.5 million (-63.0%; Q1-Q3 prior year: EUR 171.6 million)
* EBIT margin: 3.4% (Q1-Q3 prior year: 8.5%)
* Profit for the period: EUR 37.0 million (-71.0%; Q1-Q3 prior year: EUR 127.6
million)
* Equity ratio: 59.4% (28 February 2018: 61.7%)
Outlook for full year 2018|19
* Forecast for full 2018|19 financial year confirmed, with significant EBIT
decrease and slight reduction in revenue year-on-year
* Specialties strategy remains in place
* Investment well above depreciation
* Diversification provided by the three segments Fruit, Starch and Sugar is
basis for stable Group performance
The first three quarters of the 2018|19 financial year of AGRANA, the
manufacturer of fruit products, sugar and starch, were defined by very low sales
prices in the Sugar and Starch segments. AGRANA Chief Executive Officer Johann
Marihart comments: "The persistent depressed prices for sugar and isoglucose
after the end of the EU quotas, as well as ethanol prices significantly lower
than one year earlier, are sharply impacting this year's earnings. Revenue in
the Fruit segment is stable, with the fruit juice concentrate business
generating satisfactory EBIT earnings thanks to better contribution margins from
apple juice concentrate from the 2017 harvest."
Results by segment
FRUIT segment
Fruit segment revenue in the first three quarters of 2018|19 was EUR 890.2
million, in line with the year-earlier period. EBIT, at EUR 62.0 million,
increased by 4.9% from one year earlier. While in the fruit preparations
business, currency factors caused revenue to stagnate (despite higher sales
volumes) and the depreciation of some local currencies against the euro led to a
deterioration in earnings, revenue in the fruit juice concentrate activities
rose thanks to the higher apple juice concentrate prices for product made from
the 2017 crop. As a result of the improved contribution margins in the fruit
juice concentrate business, its EBIT also grew very significantly.
STARCH segment
Revenue in the Starch segment in the first nine months of the financial year was
EUR 566.4 million, or slightly below the year-ago value (by 1.7%). The revenue
downtick resulted both from significantly lower bioethanol prices than one year
earlier and from a decline of saccharification product revenue attributable in
part to the very low prices of granulated sugar. This led to an EBIT decrease of
47.6% to EUR 36.9 million.
SUGAR segment
The Sugar segment's revenue in the first three quarters was EUR 406.9 million, a
decrease of 26.1% from the same period one year earlier. EBIT fell markedly to a
deficit of EUR 35.4 million. This negative result was attributable to a very
steep year-on-year decline in sugar sales prices, as well as to lower sugar
quantities sold.
The financial results are presented in detail in the interim statement for the
first three quarters of 2018|19 --> LINK [https://www.agrana.com/fileadmin/
inhalte/agrana_group/quarterly_reports/2018_19/AGRANA_Interim_statement_Q1-
3_2018_19_EN_web.pdf]
Outlook
For the full 2018|19 financial year, AGRANA continues to expect a significant
reduction in Group operating profit (EBIT). Revenue is projected to be slightly
lower than in the year before.
CEO Johann Marihart says: "In the difficult economic environment, we believe
that as a global industrial concern with a diversified business model, we are
strategically well positioned. Rather than engage in purely price-based
competition, we will continue to rely on our specialties strategy. Thanks to
this and the diversification provided by our three pillars of Fruit, Starch and
Sugar, we will do better than pure sugar companies."
In the 2018|19 financial year the AGRANA Group is investing EUR 185 million,
which very significantly exceeds the budgeted depreciation of about EUR 96
million. Key capex projects include the construction of the second Chinese fruit
preparations plant, in the greater Shanghai area, which began operating at the
end of the calendar year, and the expansion of the wheat starch plant in
Pischelsdorf near Tulln, Austria, which is progressing on schedule and will be
completed by the end of 2019.
About AGRANA
AGRANA converts agricultural raw materials into high-quality foods and numerous
industrial intermediate products. About 9,400 employees at 60 production sites
worldwide generate annual Group revenue of approximately EUR 2.6 billion.
Established in 1988, the company is the world market leader in fruit
preparations and the leading producer of fruit juice concentrates in Europe. As
well, its Starch segment is a major manufacturer of custom starch products and
bioethanol. AGRANA today is also the leading sugar producer in Central and
Eastern Europe.
This announcement is available in German and English at https://www.agrana.com/
en/ [https://www.agrana.com/en/]
Further inquiry note:
AGRANA Beteiligungs-AG
Mag.(FH) Hannes Haider
Investor Relations
Tel.: +43-1-211 37-12905
e-mail:hannes.haider@agrana.com
Mag.(FH) Markus Simak
Public Relations
Tel.: +43-1-211 37-12084
e-mail: markus.simak@agrana.com
end of announcement euro adhoc
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issuer: AGRANA Beteiligungs-AG
F.-W.-Raiffeisen-Platz 1
A-1020 Wien
phone: +43-1-21137-0
FAX: +43-1-21137-12926
mail: info.ab@agrana.com
WWW: www.agrana.com
ISIN: AT000AGRANA3
indexes: WBI
stockmarkets: Stuttgart, Wien, Frankfurt, Berlin
language: English