AGRANA's EBIT up more than 30% – Significant earnings growth also expected for full year 2016|17

13 жовтня 2016 р.

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 € 1,320.3 million (H1 prior year: € 1,263.5 million). Operating profit (EBIT) grew to € 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
€ 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 € 10.3 million (H1 prior year: net expense of € 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 € 17.5 million, corresponding to a tax rate of approximately 21.8% (H1 prior year: 23.7%), profit for the period was € 62.6 million (H1 prior year: € 43.9 million).

Net debt at 31 August 2016 was € 397.1 million, or € 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
€ 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 € 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 € 18.3 million was attributable to a significant rise in spot sales prices in Eastern Europe from year-ago levels.



Starch segment
€ 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 € 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 € 32.0 million, was slightly better than the good year-earlier result, due to lower raw material costs.

    

Fruit Segment
€ 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 € 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 € 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 € 129 million, will again exceed depreciation of about € 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 € 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.

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