AGRANA results for first half 2013/14 (ended 31 August 2013)Date: 10.10.2013
In the first half of 2013|14, AGRANA Beteiligungs-AG saw a year-on-year increase in Group revenue from € 1,603.1 million to € 1,674.3 million. The operating profit of € 108.0 million before exceptional items did not reach the prior year’s record result of € 142.5 million. “While higher raw material prices in the Sugar and Starch segments detracted from earnings, the Fruit segment's operating profit grew by 75%,” explains Johann Marihart, Chief Executive Officer of AGRANA Beteiligungs-AG.
After the Group’s net financial items expense of € 15.4 million and a tax expense of € 23.4 million (corresponding to a tax rate of 25.3%), Group profit for the period was € 69.2 million. Net debt at 31 August 2013 stood at € 397.8 million, down significantly by € 85.9 million from the 2012|13 financial year-end level of € 483.7 million. Total assets eased slightly compared with 28 February 2013, to € 2.44 billion, and the equity ratio rose from 47.0% to 49.8%. The gearing ratio at the quarterly balance sheet date was 32.8% and thus better than at 28 February 2013 (39.9%).
AGRANA – IFRS results (for the six months and quarter ended 31 August 2013)
|H1 2012|13||Q1 2013|14||Q1 2012|13|
|Revenue||1,674.3 m€||1,603.1 m€||822.7 Mio. €||828.5 Mio. €|
|EBITDA1||147.0 m€||176.6 m€||66.6 m€||89.8 m€|
|Operating profit before exceptional items1||108.0 m€||142.5 m€||46.2 m€||71.6 m€|
|Operating profit after exceptional items||108.0 m€||141.5 m€||46.2 m€||70.6 m€|
|Profit for the period||69.2 m€||99.6 m€||29.3 m€||52.1 m€|
|Earnings per share||4.59 €||6.86 €||1.94 €||3.54 €|
|Purchases of property, plant and equipment and intangibles2||59.3 m€||59.6 m€||35.9 m€||36.9 m€|
1 Before exceptional items.
2 Excluding goodwill.
3 Average number of employees in the period.
“In the 2013|14 financial year we are again investing vigorously in organic growth in all three business segments, with total capital expenditure of about € 140 million. This underscores the sustainability focus of our strategy. A key investment this year is the construction of the fruit preparations plant in Lysander, New York, intended to further strengthen our market position in the United States,” says Marihart.
|Revenue||603.1 m€||634.0 m€||297.4 m€||327.2 m€|
|Operating profit before exceptional items||38.2 m€||71.2 m€||17.1 m€||36.6 m€|
The Sugar segment's sales volume, revenue and earnings in the first half of 2013|14 were well below the level of one year earlier. The revenue decline is explained primarily by reduced sales quantities of quota sugar and lower exports. While sugar sales volumes eased slightly, revenues from by-products and other products were constant. As expected, the operating profit of € 38.2 million before exceptional items was well below the high prior-year figure (of € 71.2 million), mainly because of a strong overall rise in raw material costs for the prior year's beet crop. The operating margin eased to 6.3%.
|Revenue||443.6 m€||395.7 Mio. €||223.3 m€||203.3 m€|
|Operating profit before exceptional items||26.3 m€||46.5 m€||9.7 m€||22.5 m€|
Revenue of the Starch segment in the first half of 2013|14 was € 443.6 million, representing growth of 12.1% from the year-ago level of € 395.7 million. The growth was driven by higher selling prices and volumes. Especially as the intense competition did not allow the increase in raw material costs to be recouped through sales prices, the segment's pre-exceptionals operating profit of € 26.3 million was down substantially from the prior-year value of € 46.5 million. As well, the commissioning of the wheat starch plant in Pischelsdorf, Austria, entailed the expected start-up losses. The decrease in earnings combined with higher revenue meant a contraction in operating margin to 5.9%.
|H1 2013|14||H1 2012|13||Q2
|Revenue||627.6 m€||573.4 m€||302.0 m€||298.0 m€|
|Operating profit before exceptional items||43.4 m€||24.8 m€||19.3 m€||12.5 m€|
Fruit segment revenue increased by 9.5% in the first half of 2013|14 to € 627.6 million. This resulted above all from compelling volume growth of 8% in fruit preparations as AGRANA's market share expanded in many countries. The greatest volume growth was achieved in North America and Asia, but sales quantities also increased in Europe for the first time after years of decreases. Revenue in the fruit juice concentrate activities also grew. The segment's operating profit of € 43.4 million before exceptional items was 75% better than the year-earlier result of € 24.8 million. The operating margin was 6.9%.
For the full 2013|14 financial year, AGRANA continues to expect a slight increase in Group revenue, driven primarily by sales volume growth. In view of the results for the year to date, operating profit before exceptional items will be less than in the last two, record years.