EANS-News: AGRANA grows revenue and EBIT in Q1 2020|21
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Corporate news transmitted by euro adhoc with the aim of a Europe-wide
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Quarterly Report
Vienna - Financial first quarter of 2020|21 at a glance
- Revenue: EUR 652.6 million (+2.2%; Q1 prior year: EUR 638.4 million)
- EBIT: EUR 32.0 million (+3.6%; Q1 prior year: EUR 30.9 million)
- EBIT margin: 4.9% (Q1 prior year: 4.8%)
- Profit for the period: EUR 19.2 million (+4.9%; Q1 prior year: EUR 18.3
million)
- Equity ratio: 54.9% (29 February 2020: 54.4%)
- Forecast for full year 2020|21 (on a pre-COVID-19 basis): significant increase
in EBIT and revenue
In the first quarter of the 2020|21 financial year (ended 31 May 2020), AGRANA,
the fruit, starch and sugar company, achieved a slight increase in both revenue
and operating profit (EBIT) despite the COVID-19 crisis. AGRANA Chief Executive
Officer Johann Marihart comments: "The key factor in the solid Group EBIT was a
very significant profitability improvement in the Sugar segment compared to the
same quarter last year. EBIT in the Starch segment was moderately below the
year-earlier level, with the decline due mainly to a short-term slump in
bioethanol prices at the beginning of the COVID-19 pandemic, which have since
recovered again. Ethanol sales remained stable in volume terms despite the
lockdown, thanks to the firm export market for bioethanol with high CO2
reductions and to the sale of 10 million litres into the disinfectant sector. In
the Fruit segment, earnings were significantly below those of one year ago.
Thus, the performance of the fruit juice concentrate activities was down as a
result of the prior-year harvest and there were COVID-19-related decreases in
the fruit preparations business."
Results in each business segment in Q1 2020|21
FRUIT segment
Revenue in the Fruit segment, at EUR 303.7 million, was off slightly from one
year earlier. Revenue from fruit preparations fell somewhat, as a result of
lower sales volumes. In the fruit juice concentrate business as well, volumes
were the reason for a moderate revenue decline relative to a year ago. EBIT in
the Fruit segment was EUR 16.0 million in the first three months, a reduction of
26.6% year-on-year. The causes of the deterioration lay primarily in the fruit
juice concentrate business, which notably saw reduced delivery volumes in
combination with lower contribution margins of apple juice concentrates produced
from the 2019 crop.
STARCH segment
The Starch segment's revenue of CHF 204.4 million was slightly below the year-
earlier level. The COVID-19 crisis had a negative impact on sales volumes of
saccharification products, and initially also led to a drastic fall in
bioethanol prices amid the lockdown and the sharp drop in demand for petrol.
However, over the rest of the financial first quarter, bioethanol quotations
rebounded again due to the resurgence in private transport. At EUR 17.0 million,
EBIT of the Starch segment was moderately below the year-earlier amount. In the
period under review, weaker market demand dampened prices and put pressure on
margins.
SUGAR segment
The Sugar segment's revenue of EUR 144.5 million in the first quarter was up
significantly from one year before. Both higher sugar selling prices and
increased sugar sales volumes led to this growth. Although EBIT was still
negative at a deficit of EUR 1.0 million, it marked a substantial improvement
compared to the same quarter of the previous year due to a more benign sales
price environment.
The detailed financial results are provided in the interim statement for the
first quarter of 2020|21 at www.agrana.com/en/investor [https://www.agrana.com/
fileadmin/inhalte/agrana_group/quarterly_reports/2020_21/
AGRANA_Interim_Statement_Q1_2020_21_EN.pdf].
Outlook
On the basis of the planning before the advent of COVID-19, AGRANA had expected
a significant increase in Group EBIT for the full 2020|21 financial year. This
forecast continues to be subject to the proviso that the economic and financial
impacts of the COVID-19 pandemic are currently not quantifiable and the further
trajectory of the pandemic is uncertain.
In the 2020|21 financial year, the AGRANA Group plans to invest approximately
EUR 73 million, an amount significantly less than the budgeted depreciation of
about EUR 120 million. The largest capital expenditure project is the betaine
crystallisation plant of Beta Pura GmbH. Together with the American joint
venture partner, The Amalgamated Sugar Company LLC, about EUR 37 million will be
invested in the refining of by-products from sugar production, at the site in
Tulln, Austria. The new plant will be commissioned in August 2020.
About AGRANA
AGRANA converts agricultural raw materials into high-quality foods and numerous
industrial intermediate products. About 9,400 employees at 57 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 and
of bioethanol. AGRANA today is also 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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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