DJ EQS-News: AGRANA achieves robust results in the 2023|24 financial year

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EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s): Annual Results
AGRANA achieves robust results in the 2023|24 financial year
2024-05-14 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
AGRANA achieves robust results in the 2023|24 financial year
2023|24 at a glance (year ended 29 February 2024)
- Revenue: EUR 3,786.9 million (+4.1%; prior year: EUR 3,637.4 million)
- Operating profit before exceptional items and results of equity-accounted joint ventures: EUR 176.6 million (+11.5%;
prior year: EUR 158.4 million)
- Operating profit (EBIT): EUR 151.0 million (+71.1%; prior year: EUR 88.3 million)
- Earnings per share: EUR 1.04 (+316.0%; prior year: EUR 0.25)
- Equity ratio: 43.2% (prior year: 41.8%)
- Dividend proposal for 2023|24: EUR 0.90 per share (dividend for 2022|23: EUR 0.90 per share)

Revenue of the AGRANA Group grew by 4.1% in the 2023|24 financial year to EUR 3,786.9 million. Operating profit (EBIT)
was EUR 151.0 million, fulfilling the guidance of a very substantial increase from the prior year. "Despite a continued
volatile environment - in which we adapted well to the market dynamics of raw material and energy prices and sales
volumes - we were able to significantly improve our results. The Fruit segment did well operationally; a downside
factor in its operating profit was an impairment charge made necessary by the ongoing strained business trend in Asia.
In the Starch segment, sales volumes and selling prices, and therefore also operating profit, fell significantly
compared to the previous year as a result of the sluggish economy. The Sugar segment significantly improved its
capacity utilisation and increased its sugar production volume from the year before. In spite of a decline in sugar
sales volume due to increased imports from Ukraine, the sugar business was satisfactory," said AGRANA CEO Stephan
Büttner.

AGRANA Group consolidated financial results
EUR million, except as indicated
Change
FY 2023|24 FY 2022|23 % or pp

Revenue                                             3,786.9    3,637.4    +4.1% 
EBITDA*                                             291.1      277.1      +5.0% 

Operating profit before exceptional items** 176.6 158.4 +11.5% Share of results of equity-accounted joint ventures 1.4 18.7 -92.5% Operating profit (EBIT) 151.0 88.3 +71.1% EBIT margin 4.0% 2.4% +1.6pp Profit for the period 69.3 24.7 +181.0% Earnings per share (EUR) 1.04 0.25 +316.0% Investment*** 127.3 102.9 +23.71% Number of employees**** 8,876 8,730 +1.67% * EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation
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** 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

**** Average number of full-time equivalents in the financial year

Net financial items amounted to an expense of EUR 53.3 million in the 2023|24 financial year (prior year: net expense of EUR 26.5 million), with the deterioration driven primarily by an adverse change in net interest expense and, to a lesser degree, in currency translation effects (including the interest portion of currency swaps).

Profit before tax grew very significantly from the previous year's EUR 61.7 million to EUR 97.7 million. After an income tax expense of EUR 28.3 million, representing a tax rate of 29.0% (prior year: 60.0%), the Group recorded a profit for the period of EUR 69.4 million (prior year: EUR 24.7 million). Profit for the period attributable to shareholders of AGRANA was EUR 64.9 million (prior year: EUR 15.8 million); earnings per share rose to EUR 1.04 (prior year: EUR 0.25).

Total assets as of 29 February 2024, at EUR 2,889.4 million, eased slightly from one year earlier (28 February 2023: EUR 3,003.1 million), with an equity ratio of 43.2% (28 February 2023: 41.8%). Net debt as of 29 February 2024, at EUR 636.1 million, was EUR 48.8 million less than at the 2022|23 year-end. The gearing ratio (net debt to total equity) thus eased to 51.0% at the balance sheet date (28 February 2023: 54.5%).

In line with the long-term orientation of AGRANA's dividend policy of continuity, the Management Board will propose to the Annual General Meeting to pay a dividend of EUR 0.90 per share for the year (dividend for 2022|23: EUR 0.90 per share).

Fruit segment

EUR million, except %

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FY 2023|24 FY 2022|23

Revenue                  1,566.9    1,481.9 
Operating profit (EBIT)  60.2       (38.5) 
EBIT margin              3.8%       -2.6% 

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Revenue in the Fruit segment grew by 5.7% year-on-year. This was due to price increases in fruit preparations, as well as higher sales volumes in this business.

The Fruit segment's EBIT result turned to a profit of EUR 60.2 million (prior year: loss of EUR 38.5 million), lifted both by the non-recurrence of a prior-year goodwill impairment and by the significantly improved operating performance. A negative effect on EBIT in 2023|24 came from an impairment loss of EUR 18.7 million on property, plant and equipment in China and Japan that was due to the difficult economic situation there and the resulting adverse business trend in Asia.

Starch segment

EUR million, except %

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FY 2023|24 FY 2022|23

Revenue                  1,148.7    1,293.8 
Operating profit (EBIT)  50.4       80.2 
EBIT margin              4.4%       6.2% 

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For the Starch segment, the 2023|24 financial year was characterised by reduced demand and mounting pressure on prices. The inflation-induced reluctance to spend and customers' destocking led to a decline in sales volumes compared to the prior year. Selling prices also fell significantly, due to declining raw material prices.

As a result, revenue in the Starch segment decreased by 11.2% from the previous year's all-time high. About half of the decline was due to prices and half to volume effects. The most pronounced revenue reduction was seen in ethanol, as Platts prices fell significantly amid higher import volumes.

These effects led to a significant year-on-year reduction in Starch segment EBIT to EUR 50.4 million (prior year: EUR 80.2 million).

Sugar segment

EUR million, except %

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FY 2023|24 FY 2022|23

Revenue                  1,071.3    861.7 
Operating profit (EBIT)  40.4       46.6 
EBIT margin              3.8%       5.4% 

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Revenue in the Sugar segment rose 24.3% from the year before. In 2023|24, sales prices in both the reseller business (wholesalers and retailers) and in the industrial sector were above the previous year's average.

The increasing competition from Ukraine affected especially the Romanian, Hungarian and Bulgarian sugar markets. To offset significantly lower sales volumes in the home markets, export activities were intensified.

Operating profit in the Sugar segment decreased to EUR 40.4 million (prior year: EUR 46.6 million) due to significant lost sales and a smaller profit contribution by the AGRANA-Studen joint venture than one year earlier.

Outlook

As already communicated in the third-quarter publication in January 2024, AGRANA has been facing an increasingly challenging business environment since the fourth quarter of 2023|24 and is forecasting significantly lower EBIT for the 2024|25 financial year than the level achieved in 2023|24. This earnings decline will already become evident in the first quarter of 2024|25. Group revenue is projected to show a slight reduction for the full year.

Total investment across the three business segments in the 2024|25 financial year, at approximately EUR 120 million, is expected to be moderately below the 2023|24 value and in line with budgeted depreciation of about EUR 120 million. Around 12% of this capital expenditure will be for emission reduction measures in the Group's own production operations under the AGRANA climate strategy. The goal is to reduce the Group's own emissions to net-zero by 2040. By 2050, the AGRANA Group is committed to reaching net-zero emissions across its entire value chain.

About AGRANA

AGRANA converts agricultural raw materials into high-quality foods and numerous industrial intermediate products. About 9,000 employees at 55 production sites worldwide generate annual Group revenue of approximately EUR 3.8 billion. Established in 1988, the company is the global market leader in fruit preparations and the world's leading producer of apple and berry juice concentrates. 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. For queries, please contact: Markus Simak Public Relations +43 1 21137 12084 markus.simak@agrana.com Hannes Haider Investor Relations +43 1 21137 12905 hannes.haider@agrana.com

This announcement is available in German and English at www.agrana.com.

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2024-05-14 CET/CEST This Corporate News was distributed by EQS Group AG. www.eqs.com

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Language:     English 
Company:      AGRANA Beteiligungs-Aktiengesellschaft 

F.-W.-Raiffeisen-Platz 1
A-1020 Wien
Austria

Phone:        +43-1-21137-0 
Fax:          +43-1-21137-12926 
E-mail:       investor.relations@agrana.com 
Internet:     www.agrana.com 
ISIN:         AT000AGRANA3 
WKN:          A2NB37 
Listed:       Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Munich, Stuttgart, Tradegate Exchange; 

Vienna Stock Exchange (Official Market)
EQS News ID: 1901869

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1901869 2024-05-14 CET/CEST

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