EANS-News: AGRANA results for first half of 2014|15 (ended 31 August 2014)

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Subtitle: Pressure on prices in Sugar and Fruit leaves revenue and
EBIT lower

6-month report

In the first half of the 2014|15 financial year, AGRANA, the global
sugar, starch and fruit products manufacturer, registered a
significant revenue reduction of 17.9% to EUR 1,285.2 million.
Operating profit (EBIT) was EUR 87.0 million, a decrease of 16.5%
from the first six months of 2013|14. "While the Starch segment was
able to raise its EBIT, the Sugar and Fruit segments as expected lost
ground as a result of lower revenue," explains AGRANA Chief Executive
Officer Johann Marihart. Non-recurring expenses of EUR 4.6 million
for streamlining the location structure of fruit preparations
production sites in Austria weighed on profitability in the Fruit
segment. On a positive note, AGRANA was able to cut energy costs
Group-wide by approximately 8% compared to the year-earlier reporting
period, despite higher processing volumes. In view of the difficult
market environment, AGRANA will continue to put strong emphasis on
structural optimisation and rigorous cost management.

AGRANA Beteiligungs-AG financial results*
EUR million, except %

H1 2014|15 H1 2013|14 Q2 2014|15 Q2 2013|14
Revenue 1,285.2 1,565.6 638.0 765.5
EBITDA** 113.2 125.6 49.7 57.3
Operating profit before exceptional
items 78.2 90.6 31.7 38.9
Share of results of equity-accountes
joint ventures 12.9 13.6 6.5 5.8
Operating profit (EBIT)*** 87.0 104.2 34.1 44.6
EBIT margin 6.8% 6.7% 5.3% 5.8%
Net financial items (7.1) (15.2) (4.4) (7.6)
Profit for the period 60.9 69.2 21.7 29.3
Investment**** 38.6 55.7 23.7 34.2

*All prior-year data have been restated for the adoption of IFRS 11
(equity method accounting has replaced proportionate consolidation).
**Operating profit before exceptional items, results of
equity-accounted joint ventures, depreciation and amortisation.
***Operating profit (EBIT) is after exceptional items and results of
equity- accounted joint ventures. ****Investment represents purchases
of property, plant and equipment and intangible assets, excluding
goodwill.

Net financial items in the first half of 2014|15 amounted to a net
finance expense of EUR 7.1 million (H1 2013|14: net expense of EUR
15.2 million); this significant year-on-year improvement resulted
primarily from currency translation gains. After an income tax
expense of EUR 18.9 million, corresponding to a tax rate of 23.7% (H1
2013|14: 22.3%), profit for the period was EUR 60.9 million (H1
2013|14: EUR 69.2 million). Earnings per share attributable to AGRANA
shareholders came to EUR 4.08 (H1 2013|14: EUR 4.59).

Net debt at 31 August 2014 was EUR 287.4 million, down significantly
- by EUR 99.4 million - from the 2013|14 year-end level. Total assets
eased slightly compared with 28 February 2014, to EUR 2.3 billion,
and the equity ratio rose from 49.9% to 52.1%. The debt-to-equity
gearing ratio of 24.1% at the interim balance sheet date was thus
substantially improved from 28 February 2014, when it had stood at
32.4%.

Sugar Segment - EUR million, except %

H1 2014|15 H1 2013|14 Q2 2014|15 Q2 2013|14
Revenue 378.1 572.9 193.0 279.4
Operating profit (EBIT) 28.1 38.1 11.1 17.1
EBIT margin 7.4% 6.7% 5.8% 6.1%

Sugar segment revenue in the first half of 2014|15 declined by a
significant 34.0% year-on-year to EUR 378.1 million. As expected,
EBIT too, at EUR 28.1 million, was down from the year-ago value, by
26.3%. The reasons were a continued reduction in sales prices and, to
a lesser extent, a decrease in quantities sold into the sugar-using
industry and to resellers. Revenues from by-products rose slightly.

Starch Segment - EUR million, except %

H1 2014|15 H1 2013|14 Q2 2014|15 Q2 2013|14
Revenue 351.2 365.1 173.9 184.2
Operating profit (EBIT) 25.2 22.7 10.7 8.2
EBIT margin 7.2% 6.2% 6.2% 4.5%

The Starch segment's revenue in the first half of 2014|15 was EUR
351.2 million, 3.8% less than in the same period one year earlier.
The decline resulted mainly from lower selling prices, which were
only partly offset by higher quantities sold. At EUR 25.2 million,
EBIT was up 11.0% year-on-year and profitability (the EBIT margin)
expanded by one percentage point to 7.2%. Both in starch and
bioethanol, lower selling prices were more than made up for by
reduced raw material prices.

Fruit Segment - EUR million, except %

H1 2014|15 H1 2013|14 Q2 2014|15 Q2 2013|14
Revenue 555.9 627.6 271.1 302.0
Operating profit (EBIT) 33.7 43.4 12.3 19.3
EBIT margin 6.1% 6.9% 4.5% 6.4%

Fruit segment revenue in the first half of 2014|15 eased by 11.4%
year-on-year to EUR 555.9 million. On the fruit preparations side,
sales volume was held at the year-earlier level. However, foreign
currency effects from the stronger euro led to a revenue decline of
just under 5%. The revenue reduction of about 25% in the fruit juice
concentrate business resulted from lower sales quantities and selling
prices. Segment EBIT in the first half (including the exceptional
items expense of EUR 4.6 million) was EUR 33.7 million, or 22.4% less
than one year earlier.

Outlook For the 2014|15 financial year as a whole, AGRANA expects a
significant decrease in Group revenue (2013|14: EUR 2,841.7 million),
driven by much lower average prices. For operating profit (EBIT), the
Group is projecting a significant reduction (2013|14: EUR 167.0
million) as a result of the price declines that are manifesting
notably for sugar and ethanol. Investment for the year, at
approximately EUR 96 million, will be 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