EQS-News: AGRANA delivers security of supply for its customers despite difficult environment and achieves good operating profit before exceptional items in first half of 2022|23

EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s): Half Year
Results
AGRANA delivers security of supply for its customers despite difficult
environment and achieves good operating profit before exceptional items in
first half of 2022|23

13.10.2022 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Results for the first half of 2022|23 (ended 31 August 2022)

AGRANA delivers security of supply for its customers despite difficult
environment and achieves good operating profit before exceptional items in
first half of 2022|23

•  Impairment expense of € 91.2 million, reflecting ongoing war in
Ukraine
• Guidance for full year 2022|23 reaffirmed

AGRANA, the international fruit, starch and sugar group, generated revenue
of € 1,792.3 million in the first half of the 2022|23 financial year, a
significant increase of 25.8% year-on-year (H1 prior year: € 1,424.4
million). The earnings measure “operating profit before exceptional items
and results of equity-accounted joint ventures” grew to € 86.5 million in
a very challenging environment (H1 prior year: € 41.0 million). However, a
required impairment test at 31 August 2022 resulted in the recognition of
impairment on assets and goodwill in the Fruit segment. This write-down of
€ 91.2 million – an exceptional item attributable to the Ukraine war and
to steeply rising capital costs – is not a cash expense, but testifies to
the extremely volatile and uncertain economic conditions.

“With a strong operating performance in our entire production chain and
rigorous cost management throughout the Group, we were able to supply our
customers worldwide reliably at all times and achieve good operating
profit before exceptional items. All segments helped drive these results,”
emphasises AGRANA CEO Markus Mühleisen.

 

AGRANA Group consolidated financial results
€ million, except %

  H1 2022|23 H1 2021|22
Revenue 1,792.3 1,424.4
EBITDA* 141.2 94.0
Operating profit before exceptional items** 86.5 41.0
Share of results of equity-accounted joint ventures 13.5 6.1
Exceptional items (88.9) (2.3)
Operating profit (EBIT) 11.1 44.8
Net financial items 0.6% 3.1%
Profit for the period (17.0) 27.1
Investment*** 35.7 30.3

 

  Q2 2022|23 Q2 2021|22
Revenue 906.0 718.6
EBITDA* 69.1 49.2
Operating profit before exceptional items** 41.6 22.3
Share of results of equity-accounted joint ventures 6.9 3.9
Exceptional items (89.0) (2.3)
Operating profit (EBIT) (40.5) 23.9
EBIT margin (4.5%) 3.3%
Profit for the period (53.0) 15.0
Investment*** 24.4 16.0

* 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

 

The Group’s net financial items amounted to an expense of € 10.2 million
(up from a € 7.1 million expense in the year-earlier period) due primarily
to an adverse change in currency translation differences. After an income
tax expense of € 17.8 million, corresponding to a tax rate of more than
100% (H1 prior year: 28.1%), the Group’s loss for the period was € 17.0
million (H1 prior year: profit for the period of € 27.1 million). Total
assets, at € 2.66 billion as of 31 August 2022, were stable relative to
the 2021|22 year-end balance sheet date, with an equity ratio of 47.4%
(28 February 2022: 48.5%). Net debt as of 31 August 2022 stood at € 657.4
million, up € 125.4 million from the year-end level of 28 February 2022.

 

Fruit segment
€ million, except %

  H1 2022|23 H1 2021|22
Revenue 727.5 633.4
Operating profit before exceptional items and
results of equity-accounted joint ventures 29.8 28.1
Operating profit (EBIT) (60.0) 25.8
EBIT margin (8.2%) 4.1%

 

  Q2 2022|23 Q2 2021|22
Revenue 366.8 312.7
Operating profit before exceptional items and
results of equity-accounted joint ventures 10.0 12.2
Operating profit (EBIT) (79.9) 9.9
EBIT margin (21.8%) 3.2%

Fruit segment revenue grew by a significant 14.9% from the first half of
the prior year. Revenue in fruit preparations rose for price reasons,
while the increase in fruit juice concentrate revenue was additionally
driven by sales volume. Due to an impairment charge, the Fruit segment’s
EBIT result, a loss of € 60.0 million, represented a sharp deterioration
from the year-ago value. In addition to the ongoing war in Ukraine and the
upheaval in energy and commodity markets, it was rapidly rising capital
costs in particular that triggered an impairment test for the Fruit
cash-generating unit at the half-year reporting date of 31 August 2022.
The test identified impairment (a non-cash expense) of € 91.2 million on
assets and goodwill.

Operationally, profitability in fruit preparations was down significantly
from one year earlier. The deterioration was attributable mainly to a
mixed business performance in the Europe region (including Ukraine) and
Asia-Pacific. In the fruit juice concentrate business, profit rose very
significantly thanks to improved contribution margins for apple juice
concentrate from the 2021 harvest.
 

Starch segment
€ million, except %

  H1 2022|23 H1 2021|22
Revenue 655.3 476.8
Operating profit before exceptional items and
results of equity-accounted joint ventures 49.6 22.1
Operating profit (EBIT) 56.7 29.0
EBIT margin 8.7% 6.1%

 

  Q2 2022|23 Q2 2021|22
Revenue 336.2 242.2
Operating profit before exceptional items and
results of equity-accounted joint ventures 24.6 13.3
Operating profit (EBIT) 27.4 17.5
EBIT margin 8.1% 7.2%

The Starch segment’s revenue in the first half of 2022|23 rose by 37.4%
from the year-earlier comparative period. The key driver of the revenue
growth was the steep climb in ethanol prices compared to the same period
last year. EBIT nearly doubled, to a new total of € 56.7 million. This
increase, too, was powered by the high-margin ethanol business.

 

Sugar segment
€ million, except %

  H1 2022|23 H1 2021|22
Revenue 409.5 314.2
Operating profit/(loss) before exceptional items and
results of equity-accounted joint ventures 7.1 (9.2)
Operating profit (EBIT) 14.4 (10.0)
EBIT margin 3.5% (3.2%)

 

  Q2 2022|23 Q2 2021|22
Revenue 203.0 163.7
Operating profit/(loss) before exceptional items and
results of equity-accounted joint ventures 7.0 (3.2)
Operating profit (EBIT) 12.0 (3.5)
EBIT margin 5.9% (2.1%)

The Sugar segment’s revenue in the first half of 2022|23 was up 30.3% from
one year earlier. The reasons were increased sales volumes and
significantly higher selling prices. The price gains were especially
significant in the market segment of resellers, and prices also showed a
very positive trend in the industrial sector.

Sugar EBIT of € 14.4 million marked a pronounced improvement from the
double-digit loss of the year-earlier period. This positive turnaround was
due to significantly increased margins in the spot business thanks to the
improved sales price environment.

 

Outlook

For the full 2022|23 financial year, AGRANA expects a very significant
increase in operating profit (EBIT). As well, both the Group’s “operating
profit before exceptional items and results of equity-accounted joint
ventures” and revenue are projected to show significant growth.

Total investment across the three business segments in the 2022|23
financial year, at approximately € 107 million, is expected to exceed the
2021|22 level, but come in below this year’s budgeted depreciation of
about € 120 million.

 

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
€ 2.9 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.

Markus Simak
Public Relations
+43 1 21137 12084
[1]markus.simak@agrana.com

Hannes Haider
Investor Relations
+43 1 21137 12905
[2]hannes.haider@agrana.com
 

This announcement is available at [3] https://www.agrana.com/en/.

 

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13.10.2022 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: 1462537

 
End of News EQS News Service

1462537  13.10.2022 CET/CEST

References

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1. markus.simak@agrana.com
2. hannes.haider@agrana.com
3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=c121d30e67bb2c9c0e0bcd8bd52c873d&application_id=1462537&site_id=apa_ots_austria&application_name=news