War in Ukraine

The Russia-Ukraine conflict has become a war in the heart of Europe following the invasion of Russian forces that has stunned us all. A war causing enormous suffering and destruction and forcing millions to flee.

The AGRANA Group is directly affected by the war in Ukraine due to its subsidiaries and production sites in both Ukraine and Russia.

As a global player employing 9,000 personnel in 25 countries around the world, we are fully committed to cultural diversity and attach particular importance to respect-based and collaborative dealings with each other. Our solidarity is with all those people on site, our Ukrainian colleagues, partners and their families. We wish them all the courage and strength during these very difficult times.

AGRANA in Ukraine

AGRANA has been conducting business in Ukraine since 1997, employing around 800* personnel. At its Vinnitsa site (300km southwest of Kyiv) AGRANA processes fruit to make fruit preparations for the dairy products industry as well as fruit juice concentrates for beverage producers. In addition, AGRANA also operates its own agricultural production unit in Luka, Ukraine, where fruit is processed for the regional fresh fruit and fruit processing market. All products are mainly sold in Ukraine.

AGRANA’s Ukrainian KPIs (based on FY 2020|21)
UKRAINE Absolute amount       Share of Group
Revenue € 44.2 million 1.7%
Total assets € 34.3 million 1.4%
Number of employees (FTEs)* 809 9.1%

*Average number of full-time equivalents in the reporting period.

The current situation in Ukraine

We have set up a crisis management team which is in constant contact with our colleagues on site in order to be able to react swiftly to current developments and provide our local employees with as much support as possible, particularly with regard to their safety.

Production operations were shut down after the outbreak of war and are being temporarily started up  - depending on the current security situation. Delivery schedules are being revised and customers supplied from other sites whenever possible.

Due to the war in Ukraine AGRANA anticipates need for impairment charges in the 2021|22 financial year (see press release).

______________________________________________________

AGRANA in Russia

Only AGRANA’s fruit segment operates in Russia. Fruit preparations are produced and nearly 300 personnel employed in Serpukhov, around 100 km south of Moscow. In Russia, AGRANA manufactures products for the regional market, i.e. the fruit preparations are sold in Russia and other CIS states.

AGRANA’s Russian KPIs (based on FY 2020|21)
RUSSIA Absolute amount       Share of Group
Revenue € 52.6 million 2.1%
Total assets € 36.4 million 1.5%
Number of employees FTEs)* 285 3.2%

*Average number of full-time equivalents in the reporting period.

The current situation in Russia

AGRANA is attempting to continue performing its tasks as a supplier of essential foodstuffs and meeting the food requirements of the local population. A withdrawal from the Russian market is therefore not planned at present. We also see ourselves as bearing an obligation to our local personnel in our role as an employer. A closure would have no impact on those who are responsible for the war.

We fully support the political sanctions imposed on Russia and have in addition decided to refrain for the moment from making further investments in Russia.

We are closely monitoring ongoing developments and evaluating our operations in Russia on a regular basis.

 

 

“One way to ensure everyone’s peace and happiness is to cultivate a healthy respect for the diversity of other peoples and cultures.” (Dalai Lama)

#standwithUkraine – our humanitarian action

Not only our thoughts are with our colleagues at the moment. We are also trying to provide them with humanitarian support by means of various activities.

Besides donations to aid organisations to help with their local campaigns and shipments of sugar to the border regions of Hungary, Slovakia and Romania coping with the exodus of refugees, we have also set up an immediate assistance fund for our colleagues in the war-torn area. We have also been able to accommodate some colleagues who have fled Ukraine in vacant apartments on sites in Austria, as well as in various countries such as Poland and Romania.