AGRANA results for first three quarters of 2012|13 (ended 30 November 2012) – Revenue growth continues, with earnings expectations confirmed for full year

In the first nine months of the financial year, AGRANA delivered significant revenue growth (of 22.4% to € 2,389.3 million) and a slight increase in pre-exceptionals operating profit (up 2.8% to € 204.3 million).

In the first nine months of the financial year, AGRANA delivered significant revenue growth (of 22.4% to € 2,389.3 million) and a slight increase in pre-exceptionals operating profit (up 2.8% to € 204.3 million). The revenue expansion was driven above all by positive market developments and growing sales volumes in the Sugar and Fruit segments. These two businesses also accounted for the profit growth in the first three quarters. The Starch segment operated in market conditions that were good in the first half of the year and later cooled as expected, leading to an earnings decline for the segment in the third quarter. The Sugar segment posted earnings growth over the nine-month reporting period as a whole, but the market setting became more challenging in the past few months, with the result that segment earnings in the third quarter were lower than in the year-earlier period. In the Fruit segment, profit rose modestly compared to the first nine months of the prior year.

After a net financial items expense of € 21.1 million and a tax expense of € 43.1 million (at a tax rate of 23.7%), the Group recorded profit for the ­period of € 138.6 million (Q1-Q3 2011|12: € 129.7 million). At 30 November 2012, net debt amounted to € 498.8 million (29 February 2012: € 469.2 million). The gearing ­ratio of net debt to total equity was 41.1%, representing a downtick from the level of 43.7% at the end of the prior year. The main reasons for the increase in net debt were higher investment and the financing of the seasonally higher working capital.

AGRANA results (1 March to 30 November 2012)

[1] Excluding goodwill

AGRANA Chief Executive Officer Johann Marihart comments: "As expected, the market setting in the third quarter was challenging, characterised by higher raw material costs and by price pressure. For the full year, we reiterate our guidance despite a continuing difficult environment."

Sugar segment

Sales volumes rose year-on-year in all business areas. Sales of non-quota sugar into the sugar-using industry showed an especially positive trend. The increase in raw material costs prevented a repetition of the year-ago-quarter's record result, but the profit margin achieved was satisfactory.

Starch segment

The revenue growth arose primarily from generally higher sales quantities and from better selling prices on some products. While profitability in the first half of 2012|13 was still clearly above that of a year earlier, the increase in raw material costs led to a significant decline in Starch segment operating profit in the third quarter.

Fruit segment