EANS-News: AGRANA results for first quarter of 2014|15 (ended 31 May 2014) - Pressure on sales prices in Sugar and Fruit reduces revenue and EBIT

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Financial Figures/Balance Sheet/quarterly report

AGRANA, the global manufacturer of sugar, starch and fruit products,
started the 2014|15 financial year with a significant decline in
revenue as a result of lower market prices, following the record
revenues of the past two years. Compared to the year-earlier quarter,
Group revenue in the first three months fell by 19.1% to EUR 647.2
million. EBIT (earnings before interest and taxes), at EUR 52.9
million, eased by 11.2% from the first quarter of the prior year.
While EBIT in the Starch segment remained steady, lower revenues in
the Sugar and Fruit segments weighed on absolute earnings in these
businesses. The EBIT margins, however, improved in all three
segments.

"Despite the difficult environment, AGRANA looks to the future with
confidence and continues to invest in profitable growth," says AGRANA
Chief Executive Officer Johann Marihart. "As a prominent example of
capital investment, our fourth US fruit preparations plant, in
Lysander, New York, began operation on schedule. In the Starch
segment, we are working to deepen our strategic commitment to
specialty starch products like organic and waxy corn starches for
market success. With this in mind, we are building out corn starch
capacity at the Austrian facility in Aschach by about 30%. In Tulln,
Austria, we are doubling the molasses desugaring volume, thus also
considerabely improving yield."

AGRANA Group financial results
(EUR million, except %)

Q1 2014|15 Q1 2013|14*
Revenue 647.2 800,0
EBITDA** 69.9 76.1
Operating profit [EBIT] 52.9 59.6
EBIT margin 8.2% 7.5%
net financial items (2.7) (7.6)
Income tax (11) (12.1)
Profit for the period 39.2 39.9
Investments*** 14.9 21.5

*The prior-year data have been restated under IAS 8 for the adoption
of IFRS 11 (Joint Arrangements). **Operating profit before
exceptional items, depreciation and amortisation. ***Purchases of
property, plant and equipment and intangibles (excluding goodwill).

Net financial items in the first quarter of 2014|15 amounted to a net
finance expense of EUR 2.7 million (Q1 2013|14: net expense of EUR
7.6 million); the year-on-year improvement resulted primarily from
net currency translation gains. With an income tax expense of EUR
11.0 million, corresponding to a tax rate of 21.9% (Q1 2013|14:
23.2%), profit for the period was EUR 39.2 million (Q1 2013|14: EUR
39.9 million). After deducting non-controlling interests, earnings
per share attributable to AGRANA's shareholders amounted to EUR 2.66
(Q1 2013|14: EUR 2.65).

Net debt as of 31 May 2014 stood at EUR 418.1 million, a significant
seasonal increase of EUR 31.3 million from the 2013|14 financial
year-end. Total assets were stable relative to 28 February 2014, at
EUR 2,365.1 million, and the equity ratio rose from 49.9% to 52.1%.
The gearing ratio increased slightly to 34.0% from the 28 February
2014 level of 32.4%.

Changes in reporting as a result of IFRS 11 The new, 2014|15
financial year brought substantial changes in financial reporting.
With the mandatory application of IFRS 11, from this year the joint
ventures of the STUDEN group (in the Sugar segment) and HUNGRANA
group (in the Starch segment) are accounted for using the equity
method rather than proportionate consolidation as before. As this
standard must be applied retrospectively, the values for the prior
year have been restated.

Sugar segment financial results
(EUR million, except %)

Q1 2014|15 Q1 2013|14*
Revenue 185.1 293.5
Operating profit [EBIT] 17.0 21.0
EBIT margin 9.2% 7.2%

As expected, business in the Sugar segment was off to a weaker start
in the 2014|15 financial year, lagging behind the year-earlier
results in sales volume, revenue and operating profit (EBIT). In the
first quarter, revenue declined by 36.9% year-on-year to EUR 185.1
million, driven by a reduction in sales prices and slightly smaller
quantities sold into the sugar-using industry. As anticipated, the
EBIT result of EUR 17.0 million was down from the high year-ago
value. Proactive measures were able to cushion the decrease.

Starch segment financial results
(EUR million, except %)

Q1 2014|15 Q1 2013|14*
Revenue 177.3 180.9
Operating profit [EBIT] 14.5 14.5
EBIT margin 8.2% 8.0%

Starch segment revenue in the first quarter of 2014|15 was EUR 177.3
million, about 2% less than in the same quarter one year earlier. The
mild downtick was caused primarily by lower selling prices, which
narrowly outweighed the positive effect of the additional volumes
from the wheat starch plant in Pischelsdorf, Austria, that began
production in June 2013. At EUR 14.5 million, EBIT was constant
year-on-year in absolute terms, but the EBIT margin widened to 8.2%.

Fruit segment financial results
(EUR million, except %)

Q1 2014|15 Q1 2013|14*
Revenue 284.8 325.6
Operating profit [EBIT] 21.4 24.1
EBIT margin 7.5% 7.4%

Fruit segment revenue decreased by 12.5% in the first quarter of
2014|15, to EUR 284.8 million. In fruit preparations, sales
quantities were held steady at the prior-year level, but foreign
exchange effects from the stronger euro led to a revenue decline of
close to 8%. The revenue reduction of about 25% in the fruit juice
concentrate business resulted from lower sales quantities and selling
prices. EBIT in the first quarter was EUR 21.4 million, or 11.2% less
than one year earlier. However, both in fruit preparations and fruit
juice concentrates, the segment was able to maintain the EBIT margin
thanks to reduced structural and material costs.

Outlook

As the downward pressure on sugar and bioethanol prices is likely to
continue, AGRANA expects a significant decrease in EBIT for the full
2014|15 financial year. The Group's revenue is projected to ease on
lower average selling prices that more than counterbalance slightly
rising sales volumes. The budget investment of approximately EUR 96
million for the year is in line with depreciation.

About AGRANA

AGRANA turns agricultural raw materials into high-quality foods and
many industrial intermediate products. About 8,800 employees at more
than 50 production sites worldwide generate annual revenue of around
three billion euros. Established in 1988, the company today is the
leading sugar producer in Central and Eastern Europe and its Starch
segment is a major European manufacturer of specialty products and
bioethanol. AGRANA is also the world market leader in fruit
preparations and Europe's largest producer of fruit juice
concentrates.

This Press Release is also available on the AGRANA website at
www.agrana.com.

Further inquiry note:
AGRANA Beteiligungs-AG

Mag.(FH) Markus Simak
Pressesprecher
Tel.: +43-1-211 37-12084
e-mail: markus.simak@agrana.com

Mag.(FH) Hannes Haider
Investor Relations
Tel.: +43-1-211 37-12905
e-mail:hannes.haider@agrana.com

end of announcement euro adhoc
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company: AGRANA Beteiligungs-AG
F.-W.-Raiffeisen-Platz 1
A-1020 Wien
phone: +43-1-21137-0
FAX: +43-1-21137-12045
mail: info.ab@agrana.com
WWW: www.agrana.com
sector: Food
ISIN: AT0000603709
indexes: WBI, ATX Prime
stockmarkets: Präsenzhandel: Berlin, Stuttgart, Frankfurt, official market: Wien
language: English