AGRANA: Good first half of 2010|11

Revenue up 3.8% from first half of prior year; Growth of 47.6% in operating profit before exceptional items, from EUR 43.9 million in first half of 2009|10 to EUR 64.8 million in reporting period

• Revenue up 3.8% from first half of prior year
• Growth of 47.6% in operating profit before exceptional items, from EUR 43.9 million in first half of 2009|10 to EUR 64.8 million in reporting period
• Net debt reduced by 20.3% since beginning of financial year, to EUR 300.2 million
• Equity ratio of 51.4%, gearing of 32.8%
• Rising raw material prices in second half of 2010|11
• For full year 2010|11, expecting slight growth in revenue and an increase in pre-exceptionals operating profit
  
  

  	Q2 2010|11	Q2 2009|10	H1 2010|11	H1 2009|10
  Revenue	€ 532.9 m	€ 528.0 m	€ 1,073.3 m	€ 1,034.2 m
  Operating profit before exceptional items	€ 30.5 m	€ 23.9 m	€ 64.8 m	€ 43.9 m
  Operating Margin	5.7%	4.5%	6.0 %	4.2 %
  Profit before tax	€ 20.7 m	€ 25.4 m	€ 48.7 m	€ 46.4 m
  Profit for the period	€ 17.4 m	€ 18.1 m	€ 37.4 m	€ 34.8 m
  Earnings per share	€ 1.19	€ 1.27	€ 2.57	€ 2.46
  Purchases of property, plant nad equipment and intangibles	€ 11.5 m	€ 9.5 m	€ 19.1 m	€ 16.3 m
  Staff count at end of period			8,798	8,177

As a result of currency effects, net financial items in the second quarter represented a net finance expense of EUR 9.8 million, a significant decrease from the prior-year quarter’s net finance income of EUR 1.5 million. The tax expense in the second quarter amounted to EUR 3.3 million.

SEGMENT RESULTS

Sugar segment

In spite of an expansion in sales volumes of non-quota sugar, the market-reform-driven decline in quota sugar prices led to a decrease in the Sugar segment’s overall revenue. High world market prices for raw sugar meant cost increases in the refining business. Operating profit before exceptional items was therefore lower in the second quarter than the good result of the year-earlier quarter.

Starch segment

In the second quarter, as in the first, the Starch segment was able to sell greater volumes of all major groups of principal products and by-products. Despite lower selling prices, the segment’s revenue and earnings thus grew significantly from the respective prior-year comparative periods. Additionally, the performance of the Austrian bioethanol activities contributed greatly to the increase in the Starch segment’s operating margin.

Fruit segment

In the Fruit segment, the effect of slightly lower average selling prices was outweighed by higher sales volumes. These were made possible both by the market growth and by AGRANA’s market share wins, which were achieved partly through quality enhancements in products and services in the fruit preparations business. Operating profit before exceptional items was buoyed by the combination of higher volumes and further cost reductions.

OUTLOOK

AGRANA Chief Executive Officer Johann Marihart comments on the results: “After a good first half of 2010|11, we are seeing rising raw material prices in the second half of the year. For the full year 2010|11 we expect slight growth in revenue and an increase in operating profit before exceptional items.”

Report on the first half 2010|11