EANS-News: AGRANA Beteiligungs-AG / Operating profit more than doubled in 2009|10

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annual result

Wien (euro adhoc) - The 2009|10 financial year (ended 28 February
2010) of AGRANA, the sugar, starch and fruit group, was marked by a
combination of volume growth and lower sales prices. As the increase
of 16.7% in sales volume from the prior year could not fully make up
for the price effect, Group revenue in 2009|10 eased slightly by 1.8%
to EUR 1.99 billion (prior year: EUR 2.03 billion). The largest
revenue contribution was generated by the Fruit segment, at about
41%, followed by Sugar at approximately 34% and Starch at about 25%,
broadly in line with the proportions of the previous year.

Group operating profit before exceptional items more than doubled
from EUR 37.8 million in the prior year to EUR 91.9 million, driven
above all by stabilised earnings in fruit juice concentrates, the
direction in raw material markets and a satisfactory trend in the
profitability of the Starch segment. In the prior year a write-down
on apple juice concentrate inventories had weighed on the result. The
biggest contributor to the Group´s pre-exceptionals operating profit
was the Starch segment, at approximately 45%, versus about 39% for
Fruit and 16% for Sugar.

Exceptional items amounted to an expense of EUR 5.0 million (prior
year: expense of EUR 3.2 million) and related to the relocation of
the AGRANA Fruit holding company and the goodwill write-down from the
already completed closure of the plant in Kaplice, Czech Republic.
Operating profit after exceptional items thus expanded to EUR 86.9
million in the 2009|10 financial year (prior year: EUR 34.6 million).

Net financial items improved from the prior year´s net finance
expense of EUR 67.1 million to net finance income of EUR 0.5 million
in 2009|10 thanks to currency translation gains and lower interest
payments resulting from the reduction in net debt.

As a result, profit before tax increased to EUR 87.4 million from the
prior year´s pre-tax loss of EUR 32.4 million. After taxes, the
AGRANA Group recorded profit for the period of EUR 72.7 million
(prior year: loss for the period of EUR 15.9 million).

"AGRANA delivered solid results for the 2009|10 financial year, when
you consider the economic environment. Although 2009 saw the
recession reach the bottom of the trough, we successfully defied this
trend and improved our financial results. Consistent with the Group´s
aim of dividend continuity, the Management Board and Supervisory
Board will recommend to the Annual General Meeting to pay a dividend
of EUR 1.95 per share," says Johann Marihart, Chief Executive Officer
of AGRANA Beteiligungs-AG.

Key financials

2009|10 2008|09
Revenue EURm 1,989.2 2,026.3
Operating profit before exceptional items EURm 91.9 37.8
Exceptional items EURm (5.0) (3.2)
Operating profit after exceptional items EURm 86.9 34.6
Profit before tax EURm 87.4 (32.4)
Profit/(loss) for the period EURm 72.7 (15.9)
- Attributable to equity holders of AGRANA 72.2 (11.6)
Beteiligungs-AG 0.5 (4.3)
- Minority interests
Earnings per share EUR 5.08 (0.82)
Purchases of property, plant and equipment EURm 48.4 73.8
and intangibles1
Staff count 7,927 8,244

1 Excluding goodwill

Investment (excluding financial investments) was further reduced in
the 2009|10 financial year as planned, from EUR 73.8 million in the
prior year to EUR 48.4 million. In all segments, the capital
expenditure consisted largely of replacement investment; in the Fruit
segment, it additionally included mainly production expansion
projects in Russia, the USA, Argentina and Austria.

Revenue by segment

2009|10 2008|09
Sugar segment EURm 684.1 702.5
Starch segment EURm 499.2 519.4
Fruit segment EURm 805.9 804.4
AGRANA Group revenue EURm 1,989.2 2,026.3

SUGAR SEGMENT

In the Sugar segment, total sales volume rose while revenue eased by
2.6% to EUR 684.1 million (prior year: EUR 702.5 million). Against
the backdrop of the EU sugar regime, after having surrendered quota,
AGRANA registered a decrease in quota sugar sales as budgeted coupled
with lower sales prices. The sales quantities of non-quota sugar grew
thanks to a good crop and the development of new export markets.

The Sugar segment generated an operating profit of EUR 15.2 million
before exceptional items (prior year: EUR 15.8 million). With the EU
sugar market reform concluded, AGRANA is clearly well-positioned
strategically, particularly as many Eastern European countries where
AGRANA holds important market positions became net importers.

STARCH SEGMENT Although higher volumes of starch products were sold,
revenue eased just under 4% to EUR 499.2 million (prior year: EUR
519.4 million) as a result of the adjustment of sales prices to
reflect raw material costs. Revenue in the bioethanol business
expanded as lower ethanol prices were more than offset by the full
utilisation of the bioethanol plants in Austria and Hungary and by
sales of the main co-product, ActiProt, a high-protein feed.

Starch segment operating profit before exceptional items increased to
EUR 41.1 million (prior year: EUR 27.5 million), reflecting improved
margins and the earnings contribution from the bioethanol activities,
which have passed the establishment stage and are now profitable.

FRUIT SEGMENT Revenue in the Fruit segment, at EUR 805.9 million, was
steady (prior year: EUR 804.4 million). Fruit preparations revenue
(accounting for about 80% of Fruit segment revenue) essentially
matched the prior-year level despite a slight volume increase. By
developing new markets, the effect of significantly lower selling
prices was balanced through higher sales volumes of fruit juice
concentrates.

Amid the absence of the prior year´s write-down on inventories of
apple juice concentrate and thanks to various efficiency gains and
reorganisation measures in the year under review, the Fruit segment´s
result before exceptional items improved to a profit of EUR 35.7
million (prior year: loss of EUR 5.5 million before exceptional
items).

OUTLOOK AGRANA currently expects Group revenue for 2010|11 to remain
steady at the 2009|10 level.

In the Sugar segment, quota sugar sales show a trend of restricted
growth as a consequence of the European production quota. With the
production of non-quota sugar, AGRANA plans to ensure the full
capacity utilisation of its sugar plants. The normalisation in the
world market price for sugar should help stabilise the sales
situation of the raw sugar refining operations in Romania and
Bosnia-Herzegovina.

In the Starch business, the commodities market segment is expected to
reflect the business cycle by growing at a reduced rate, while the
specialties side of the market is forecast to have relatively better
growth.

For fruit preparations, it is anticipated that the good volume trend
will continue. In addition to innovation-driven growth in established
markets and capacity expansion in high-potential markets like Russia,
the opening up of new regions such as North Africa and the Middle
East is being furthered by starting a joint venture in Egypt. For
fruit juice concentrates, further volume gains are projected both in
new regional markets and on the strength of an expanded product
portfolio.

Operating profit before exceptional items can be expected to show the
continuing positive effect of the optimisation measures taken in
2010|11 and thus to surpass the 2009|10 result. The budgeted capital
expenditure of about EUR 55 million represents a level below
depreciation, thus further reducing financing requirements.

end of announcement euro adhoc
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ots Originaltext: AGRANA Beteiligungs-AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Investor Realtions:

Mag. Maria Fally

Tel.: 01-21137-12905

maria.fally@agrana.com

Public Relations:

Mag. Ulrike Pichler

Tel.: 01-21137-12084

ulrike.pichler@agrana.com

Branche: Food
ISIN: AT0000603709
WKN: 779535
Index: WBI, ATX Prime
Börsen: Berlin / Präsenzhandel
Frankfurt / Präsenzhandel
Stuttgart / Präsenzhandel
Wien / official market