AGRANA Group revenue again exceeds € 3 billion / Steady dividend proposal of € 3.60 per shareDate: 09.05.2014
- Group revenue of € 3,043.4 million again over three-billion mark
- Operating profit of € 171.4 million significantly below that of prior year (€ 236.9 million)
- Considerably higher commodity costs weigh on result in Sugar segment
- Positive trend continues in Fruit segment
- Stronger equity ratio of 48.6% (prior year: 47.0%)
- Earnings per share of € 7.60 (prior year: € 10.52); Dividend proposal unchanged at € 3.60
- Outlook: slight decline in revenue and EBIT expected.
For the second financial year in succession, the AGRANA Group has posted consolidated revenue of more than three billion euros. Despite the challenging market environment, the Group generated revenue of € 3,043.4 million, following € 3,065.9 million in the prior year. Consolidated operating profit of € 171.4 million was significantly lower than that of the prior period (€ 236.9 million). While it was possible to markedly improve operating profit in the Fruit segment, the declining market prices since the summer and the higher commodity prices in the Sugar and Starch segments have impacted on margins. Following two exceptionally strong financial years, the Sugar segment in particular experienced an extremely marked decline in earnings due to the difficult conditions prevailing in the sugar market.
Group results (IFRS)
|(mEUR=million euro)||FY 2013/14||FY 2012/13*|
|Revenue||3,043.4 mEUR||3,065.9 mEUR|
|EBITDA**||258.9 mEUR||318.4 mEUR|
|Operating profit**||171.4 mEUR||236.9 mEUR|
|Operating profit after exceptional items||175.3 mEUR||217.9 mEUR|
|Profit for the period||109.8 mEUR||156.5 mEUR|
|Earnings per share||7.60 EUR||10.52 EUR|
|Purchases of property, plant and equipment and intangibles***||136.0 mEUR||149.8 mEUR|
*Prior year data have been restated under IAS 8
**Operating profit before exceptional items, depreciation and amortisation
AGRANA Chief Executive Officer Johann Marihart says: "In an adverse environment, we are delighted to have almost managed to reach the record revenue level of the prior year. At the same time, the advantage of our strategy of effectively balancing out volatile market conditions across the segments has become obvious. We will continue to apply this approach in order to safeguard the sustainable success of AGRANA."
The net financial items expense of € 27.2 million was marginally better than that of the prior year (€ 27.7 million). The currency translation loss rose to € 16.4 million (prior year: € 0.7 million) due to unfavourable exchange rate developments. Profit before tax fell from € 190.2 million in the prior year to € 148.1 million. After an income tax expense of € 38.4 million, equivalent to an effective tax rate of 25.9% (prior year: 17.7%), the Group's profit for the period was € 109.8 million (prior year: € 156.5 million). Earnings per share amounted to € 7.60 (prior year: € 10.52).
On the basis of a balance sheet total 5% lower than a year earlier, AGRANA's equity ratio improved slightly, from 47.0% to 48.6%. Net debt at the balance sheet date of 28 February 2014 was € 410.6 million, significantly lower than the level a year earlier (€ 483.7 million), as a result of which the debt-equity gearing improved to 34.4% (39.9%). In line with AGRANA's dividend policy focused on the long term, the Management Board will again propose a dividend payment of € 3.60 per share to the Annual General Meeting.
|FY 2013|14||FY 2012|13|
|Revenue||€ 1,022.8 m||€ 1,121.5 m|
|Operating profit||€ 45.3 m||€ 119.1 m|
Revenue in the Sugar segment declined by 8.8% in the 2013|14 financial year, to € 1,022.8 million. Operating profit of € 45.3 million before exceptional items was, as forecast, below that of the record set in the prior year. The main influencing factors were the falling sales prices and commodity prices which remained high.
|FY 2013|14||FY 2012|13|
|Revenue||€ 848.5 m||€ 804.3 m|
|Operating profit||€ 61.4 m||€ 72.6 m|
Starch segment revenue grew by 5.5% in 2013|14, to € 848.5 million. This increase was driven by higher sales quantities relating to both the main and by-products. Operating profit before exceptional items in the amount of € 61.4 million was 15.4% lower than in the prior year, primarily due to the lower contribution to results of the bioethanol activities as well as the forecast start-up losses associated with the wheat starch factory at the Pischelsdorf site.
|FY 2013|14||FY 2012|13|
|Revenue||€ 1,172.1 m||€ 1,140.1 m|
|Operating profit||€ 64.6 m||€ 45.2 m|
Revenue in the Fruit segment rose by 2.8% to € 1,172.1 million. Operating profit before exceptional items climbed 42.9% to € 64.6 million. This was predominantly due to the higher sales volumes in the fruit preparations business. Due to the favourable contractual situation resulting from the campaign in the prior year, it was possible to improve the operating profit before exceptional items in the fruit juice concentrate business.
On the basis of its sound balance sheet structure and a diversified business model, consisting of the Sugar, Starch and Fruit segments, AGRANA considers itself well positioned to face the new financial year. "From today's perspective, we assume that the 2014|15 financial year will bring lower consolidated revenue as a result of somewhat lower market prices, on average, and slightly higher sales volumes. For operating profit before exceptional items, we also forecast a mild decrease," comments CEO Marihart. In the 2014|15 financial year, a total of around € 96 million is earmarked for investment in the three segments, on a par with scheduled depreciation and amortisation.
AGRANA adds value to agricultural commodities to produce top quality foodstuffs and numerous industrial upstream products. Around 8,800 personnel working at over 50 production facilities worldwide generate consolidated revenue of approximately three billion euros. The Group was founded in 1988 and is today the leading sugar company in Central and Eastern Europe as well as being a key producer, in the Starch segment, of special products and bioethanol in Europe. AGRANA is also the global leader in fruit preparations and one of the largest European producers of fruit juice concentrates.