EANS-News: AGRANA delivers significant earnings increase in first three quarters of 2020|21
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Quarterly Report
Vienna - First three quarters of 2020|21 at a glance
* Revenue: EUR 1,965.3 million (+4.6%; Q1-Q3 prior year: EUR 1,879.4 million)
* EBIT: EUR 84.3 million (+20.8%; Q1-Q3 prior year: EUR 69.8 million)
* EBIT margin: 4.3% (Q1-Q3 prior year: 3.7%)
* Profit for the period: EUR 53.8 million (+24.8%; Q1-Q3 prior year: EUR 43.1
million)
* Equity ratio: 53.4% (29 February 2020: 54.4%)
Outlook for full year 2020|21
* Forecast for full 2020|21 financial year is reaffirmed, with EBIT at least at
year-earlier level and with slight rise in revenue
* Diversification provided by the three segments Fruit, Starch and Sugar
underpins stable Group performance
In the first three quarters of the 2020|21 financial year, AGRANA, the fruit,
starch and sugar company, generated EBIT operating profit of EUR 84.3 million.
AGRANA Chief Executive Officer Johann Marihart comments: "The key drivers of the
earnings growth were good results in bioethanol - especially in the third
quarter - and a profitability improvement in the Sugar segment thanks to higher
sugar prices and volumes. Sugar EBIT nevertheless remained negative due mainly
to idle-capacity costs associated with the incomplete utilisation of sugar
factories, notably in Austria. In the Fruit segment, EBIT in the fruit
preparations business rose significantly in the first three quarters from the
year-earlier reporting period. The performance of the fruit juice concentrate
business, on the other hand, was down considerably as a result of lower
available volumes from the prior year's apple crop."
Results in each business segment
FRUIT segment
Fruit segment revenue in the first three quarters was EUR 891.7 million, closely
in line with the year-earlier level. In fruit preparations, revenue and sales
volumes remained steady. Revenue in the fruit juice concentrate activities saw a
moderate increase from a year ago, thanks largely to higher prices for the
product group of fruit juice concentrates, albeit on the back of higher apple
prices. Segment EBIT in the first nine months was EUR 41.3 million, off 10.0%
from one year earlier. While fruit preparations EBIT improved, the main reason
for the deterioration at segment level lay in lower delivery volumes in the
fruit juice concentrate business combined with reduced contribution margins for
apple juice concentrate produced from the 2019 harvest. Likewise, margins are
under pressure in berry juice concentrates and apple juice concentrate made from
the 2020 crop.
STARCH segment
Revenue in the Starch segment in the first nine months was EUR 620.8 million, or
slightly above the year-ago value. Significant volume and revenue growth was
achieved for wheat starch, through the capacity expansion in Pischelsdorf,
Austria. Market demand for almost all core products eased as a result of COVID-
19, leading to higher supply pressure. Reflecting the impact of the pandemic,
ethanol quotations were highly volatile. A drastic price slump in March 2020 in
the course of the first lockdown was followed by a recovery in quotations during
the second quarter of the financial year amid the renewed increase in private
transport, culminating in an all-time high of above EUR 800 per cubic metre of
ethanol in September; prices fell again to below EUR 500 per cubic metre in
December. At EUR 58.5 million, EBIT in the Starch segment was slightly above the
year-earlier amount. The earnings increase was made possible by the high ethanol
selling prices, while the margins on the other core products were down amid
reduced market demand.
SUGAR segment
The Sugar segment's revenue in the first three quarters was EUR 452.8 million,
up 18.2% from one year earlier. This reflected both higher sugar selling prices
and increased sugar sales volumes, especially with resellers. Although EBIT in
the first nine months was still negative at a deficit of EUR 15.5 million, it
improved markedly from the year-ago loss of EUR 33.4 million thanks to a more
benign sales price environment.
The detailed financial results are provided in the interim statement for the
first three quarters of 2020|21 (LINK [https://www.agrana.com/fileadmin/inhalte/
agrana_group/quarterly_reports/2020_21/AGRANA_Interim_statement_Q1-
3_2020_21_EN.pdf])
Outlook
Taking into account the continuing impacts of the coronavirus crisis, AGRANA
expects Group EBIT for the full 2020|21 financial year to at least match the
prior-year level. Group revenue is projected to show slight growth. Due to the
ongoing COVID-19 pandemic and the associated strong volatility in all business
segments, the forecast for the full year remains subject to very high
uncertainty.
In the 2020|21 financial year, after the high capital expenditure of the
previous years, the AGRANA Group plans to invest approximately EUR 76 million,
an amount significantly less than the budgeted depreciation of about EUR 120
million.
About AGRANA
AGRANA converts agricultural raw materials into high-quality foods and numerous
industrial intermediate products. About 9,400 employees at 56 production sites
worldwide generate annual Group revenue of approximately EUR 2.5 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 www.agrana.com [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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