EQS-News: AGRANA delivers solid performance in 2022|23 financial year

By brandaktuell On 17. Mai 2023

EQS-News: AGRANA Beteiligungs-Aktiengesellschaft / Key word(s): Annual
Results/Forecast
AGRANA delivers solid performance in 2022|23 financial year

17.05.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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AGRANA delivers solid performance in 2022|23 financial year

2022|23 at a glance (year ended 28 February 2023)

• Revenue: € 3,637.4 million (+25.4%; prior year: € 2,901.5 million)
• Operating profit before exceptional items and results of
equity-accounted joint ventures: € 158.4 million (+83.1%; prior year:
€ 86.5 million)
• Operating profit (EBIT): € 88.3 million (+257.5%; prior year: € 24.7
million)
• Earnings per share: € 0.25 (+225.0%; prior year: loss per share of
€ 0.20)
• Equity ratio: 41.8% (prior year: 48.5%)
• Dividend proposal for 2022|23: € 0.90 per share (dividend for 2021|22:
€ 0.75 per share)

The AGRANA Group’s revenue of € 3,637.4 million in the 2022|23 financial
year was significantly higher than in the year before, and its operating
profit (EBIT) of € 88.3 million greatly surpassed the prior-year figure of
€ 24.7 million. “Operating in an environment marked by the war in Ukraine
and the associated further increases in raw material and energy prices and
in market volatility, we managed the last financial year’s challenges very
effectively. In the Sugar segment we achieved the turnaround, and the
Starch segment had a solid earnings performance thanks especially to high
ethanol prices in the first half of 2022|23 and a flourishing wheat gluten
business. In the Fruit segment, we are glad that our colleagues in Ukraine
have so far remained physically unscathed by the hostilities,” said AGRANA
CEO Markus Mühleisen.

AGRANA Group results FY 2022|23 FY 2021|22 Change
€ million, except as indicated % or pp
Revenue 3,637.4 2,901.5 25.4%
EBITDA[1][1] 277.1 206.7 34.1%
Operating profit before adjustments[2][2] 158.4 86.5 83.1%
Share of results of equity- 18.7 8.0 132.7%
accounted joint ventures
Operating profit (EBIT) 88.3 24.7 257.5%
EBIT margin 2.4% 0.9% 1.6 pp
Profit/(loss) for the period 24.7 (12.2) 301.8%
Earnings/(loss) per share (€) 0.25 (0.20) 225%
Investment[3][3] 102.9 82.4 24.9%
Number of employees[4][4]^ 8,730 8,691 0.4%

Net financial items amounted to an expense of € 26.5 million in the
2022|23 financial year (prior year: net expense of € 16.1 million), a
deterioration driven primarily by more-adverse currency translation
effects. One component that was also higher in amount than one year ago
was net interest expense, as the cost of capital in the markets rose very
significantly since summer 2022.

Profit before tax jumped strongly from the prior year’s € 8.6 million to
€ 61.7 million. After an income tax expense of € 37.0 million,
representing a tax rate of 60.0% (prior year: 241.7%), the Group
registered a profit for the period of € 24.7 million (prior year: loss for
the period of € 12.2 million). Profit for the period attributable to
shareholders of AGRANA was € 15.8 million (prior year: loss of € 12.6
million); earnings per share rose to a positive € 0.25 (prior year: loss
per share of € 0.20).

Total assets as of 28 February 2023, at € 3.0 billion, were up
significantly from one year earlier (28 February 2022: € 2.6 billion),
with an equity ratio of 41.8% (28 February 2022: 48.5%). Net debt as of
28 February 2023 stood at € 684.9 million, up € 152.9 million from the
2021|22 year-end level. The gearing ratio (net debt to total equity) at
the balance sheet date was thus 54.5% (28 February 2022: 41.5%).

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 € 0.90 per share for the year (dividend for
2021|22: € 0.75 per share).

Fruit segment (€ million, except %) FY 2022|23 FY 2021|22
Revenue 1,481.9 1,251.1
Operating (loss) [EBIT] (38.5) (15.8)
EBIT margin (2.6%) (1.3%)

Revenue in the Fruit segment showed significant growth of 18.5% compared
to the previous year. The increase was substantially driven by a
combination of price gains due to the significantly risen raw material and
production costs in fruit preparations, and higher sales volumes of fruit
juice concentrates.

EBIT in the Fruit segment was negatively affected by a net exceptional
items expense of € 89.7 million (for goodwill impairment), after a net
exceptional items expense of € 67.7 million in the prior year. 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 in the second
quarter of 2022|23.

Starch segment (€ million, except %) FY 2022|23 FY 2021|22
Revenue 1,293.8 1,010.4
Operating profit [EBIT] 80.2 71.7
EBIT margin 6.2% 7.1%

Market activity in the Starch segment’s product markets in 2022|23 was
influenced by the war in Ukraine and its ripple effects. Extreme hikes in
raw material and energy costs made it necessary to pass on the rise in
manufacturing costs to industrial customers. At the same time, customers
valued AGRANA’s ability to deliver product and provide security of supply.
Starch segment revenue increased by 28% as a result of the adjustments in
sales prices across the entire product portfolio.

High ethanol prices in the first half of 2022|23 and a strong wheat gluten
business were the main reasons for an improvement of 11.9% in the Starch
segment’s EBIT.

Sugar segment (€ million, except %) FY 2022|23 FY 2021|22
Revenue 861.7 640.1
Operating profit/(loss) [EBIT] 46.6 (31.1)
EBIT margin 5.4% (4.9%)

Revenue in the Sugar segment grew by 34.6% from the prior year. Sales
volumes were stable overall, with moderate increases in volumes sold into
the industrial market and with declines in the reseller sector.

The considerable EBIT operating profit marked a very significant
turnaround from the loss of the previous year. Substantial increases in
sugar selling prices significantly outweighed the sharp hikes in raw
material and energy prices.

Outlook

For the 2023|24 financial year, AGRANA expects a very significant increase
in operating profit (EBIT). Group revenue is projected to show significant
growth.

Key sources of uncertainty for the forecast remain the war in Ukraine and
its consequences. Due to the unpredictability of the further course of the
war, effects such as exceptional cost increases and demand declines cannot
be ruled out. Since the outbreak of the war, the volatility in the Group’s
product markets and procurement markets further intensified. AGRANA’s
projections are based on the assumptions that the physical supplies of
energy and raw materials remain assured and that purchasing price
increases, especially for raw materials and energy, can be passed on in
adjusted customer contracts.

Total investment across the three business segments in the 2023|24
financial year, at approximately € 150 million, is to significantly exceed
both the 2022|23 value and this year’s budgeted depreciation of about
€ 120 million. About 16% of this capital expenditure will be for emission
reduction measures in the Group’s own production operations as part of 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 in 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
€ 3.6 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.

For queries, please contact:

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

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

This announcement is available in German and English at [7] www.agrana.com.

[8]^[1] EBITDA represents operating profit before exceptional items,
results of equity-accounted joint ventures, and operating depreciation and
amortisation.

[9]^[2] Operating profit before exceptional items and results of
equity-accounted joint ventures

[10]^[3] Investment represents purchases of property, plant and equipment
and intangible assets, excluding goodwill.

[11]^[4] Average number of full-time equivalents in the financial year.

17.05.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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: 1634525

End of News EQS News Service

1634525 17.05.2023 CET/CEST

References

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