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Subtitle: Significant earnings growth also expected for full year 2016|17
6-month report
AGRANA, the Sugar, Starch and Fruit manufacturer, delivered gratifying results
for the first half of 2016|17. The Group's revenue rose slightly, by 4.5%, to
EUR 1,320.3 million (H1 prior year: EUR 1,263.5 million). Operating profit
(EBIT) grew to EUR 90.4 million, a substantial increase of 31.6% from one year
earlier. AGRANA Chief Executive Officer Johann Marihart says: "AGRANA had a good
first half of 2016|17. While EBIT in the Sugar segment improved thanks to a
better market environment, the Fruit segment's earnings grew significantly on
rising sales volumes of fruit preparations and also as a result of our positive
showing in the fruit juice concentrate business. In the Starch segment as well,
despite lower ethanol prices, EBIT surpassed the high figure reached in the
first half of the prior financial year."
Consolidated financial results of AGRANA Beteiligungs-AG
EUR million, except %
H1 2016|17 H1 2015|16
Revenue 1,320.3 1,263.5
EBITDA* 114.2 93.1
Operating profit before exceptional items** 78.3 58.0
Share of results of equity-accounted joint ventures 15.0 12.0
Exceptional items (2.9) (1.3)
Operating profit (EBIT) 90.4 68.7
EBIT margin 6.8% 5.4%
Net financial items (10.3) (11.2)
Profit for the period 62.6 43.9
Investment*** 42.4 40.8
Q2 2016|17 Q2 2015|16
Revenue 654.8 650.8
EBITDA* 56.1 49.9
Operating profit before exceptional items** 37.7 32.0
Share of results of equity-accounted joint ventures 8.6 6.3
Exceptional items (2.9) (1.1)
Operating profit (EBIT) 43.4 37.2
EBIT margin 6.6% 5.7%
Net financial items (2.8) (9.5)
Profit for the period 31.8 22.4
Investment*** 23.8 22.9
* 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
Net financial items in the first half of 2016|17 amounted to a net expense of
EUR 10.3 million (H1 prior year: net expense of EUR 11.2 million); this
improvement, coming despite an impairment charge on a current finance receivable
in Ukraine in the Fruit segment, was attributable to more favourable currency
translation effects. After an income tax expense of EUR 17.5 million,
corresponding to a tax rate of approximately 21.8% (H1 prior year: 23.7%),
profit for the period was EUR 62.6 million (H1 prior year: EUR 43.9 million).
Net debt at 31 August 2016 was EUR 397.1 million, or EUR 8.7 million less than
the 2015|16 year-end level. The gearing ratio thus eased to 32.9% as of the
quarterly balance sheet date (29 February 2016: 33.8%).
Sugar segment
EUR million, except %
H1 2016|17 H1 2015|16
Revenue 352.0 345.0
Operating profit (EBIT) 18.3 6.4
EBIT margin 5.2% 1.9%
Q2 2016|17 Q2 2014|15
Revenue 173.6 197.2
Operating profit (EBIT) 8.3 8.3
EBIT margin 4.8% 4.2%
Sugar segment revenue in the first half of 2016|17 increased slightly by 2.0%
year-on-year to EUR 352.0 million; this growth rate was limited by lower sugar
sales volumes. Revenue from by-products and resold products increased. The
higher EBIT of EUR 18.3 million was attributable to a significant rise in spot
sales prices in Eastern Europe from year-ago levels.
Starch segment
EUR million, except %
H1 2016|17 H1 2015|16
Revenue 363.1 352.7
Operating profit (EBIT) 32.0 31.1
EBIT margin 8.8% 8.8%
Q2 2016|17 Q2 2015|16
Revenue 183.7 178.6
Operating profit (EBIT) 18.2 16.5
EBIT margin 9.9% 9.2%
The Starch segment's revenue in the first half of 2016|17 was EUR 363.1 million,
somewhat higher than in the same period one year earlier. The revenue growth
from higher sales quantities both in core and by-products more than made up for
the decrease in bioethanol revenue caused by significantly lower ethanol
quotations. EBIT, at EUR 32.0 million, was slightly better than the good year-
earlier result, due to lower raw material costs.
Fruit segment
EUR million, except %
H1 2016|17 H1 2015|16
Revenue 605.2 565.8
Operating profit (EBIT) 40.1 31.2
EBIT margin 6.6% 5.5%
Q2 2016|17 Q2 2015|16
Revenue 297.5 275.0
Operating profit (EBIT) 16.9 12.4
EBIT margin 5.7% 4.5%
Fruit segment revenue increased by 7.0% in the first half of 2016|17 to
EUR 605.2 million. In the fruit preparations division, a positive trend in sales
volumes was counteracted by somewhat reduced selling prices outside the EU, thus
leading to only slight overall growth in revenue. In the fruit juice concentrate
division, revenue increased significantly on a rise in sales prices of apple
juice concentrates and beverage bases. EBIT of the Fruit segment overall, at EUR
40.1 million, grew by 28.5% from the prior year's comparative period. Both the
fruit preparations business (thanks to increased sales volumes) and the fruit
juice concentrate activities (buoyed by higher prices of apple juice
concentrates and beverage bases from the 2015 crop) delivered higher
contributions to earnings.
Outlook
AGRANA expects Group revenue in the full 2016|17 financial year to show moderate
growth. Operating profit (EBIT) now is projected to increase significantly.
Total investment across the three business segments in the financial year, at
approximately EUR 129 million, will again exceed depreciation of about EUR 85
million.
About AGRANA
AGRANA converts agricultural raw materials into high-quality foods and numerous
industrial intermediate products. About 8,600 employees at more than 50
production sites worldwide generate annual Group sales of around EUR 2.5
billion. Established in 1988, the company today is the leading sugar producer in
Central and Eastern Europe, its Starch segment is a major European manufacturer
of specialty products, and AGRANA is the largest producer of bioethanol in
Austria. AGRANA is also the world market leader in fruit preparations and
Europe's largest maker of fruit juice concentrates.
This announcement is available in German and English at www.agrana.com.
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
Pressesprecher
Tel.: +43-1-211 37-12084
e-mail: markus.simak@agrana.com
end of announcement euro adhoc
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company: 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
sector: Food
ISIN: AT0000603709
indexes: WBI, ATX Prime
stockmarkets: Präsenzhandel: Berlin, Stuttgart, Frankfurt, official market: Wien
language: English