EANS-News: AGRANA reaffirms expectations for full year

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Subtitle: In the first three quarters of 2014|15, pressure on prices
in the Sugar segment and one-time structural effects in the Fruit
segment led to significant reductions in revenue and EBIT

quarterly report/9-month report

In the first nine months of the 2014|15 financial year, AGRANA
Beteiligungs-AG as expected registered a significant year-on-year
decrease of 15.3% in Group revenue to EUR 1,914.4 million. While
Starch segment revenue came close to matching the year-earlier
result, revenue in the Sugar and Fruit segments declined as a
consequence mainly of lower sales prices. Operating profit (EBIT) was
EUR 124.4 million, a decrease of 18.5% from the first nine months of
the prior year. The continued erosion of sugar prices, combined with
non-recurring exceptional expenses for restructuring at the Austrian
fruit preparations site in Kröllendorf, weighed on the Group's
profitability.

"We are prepared for the situation in the Sugar segment to
deteriorate further in the next several months," says AGRANA Chief
Executive Officer Johann Marihart. "In times like these, our
diversification clearly proves its worth, with the Starch and Fruit
segments lending stability to our Group results. To safeguard
AGRANA's long-term business performance, we will remain true to this
strategy going forward," explains CEO Marihart.

Net financial items in the first three quarters of 2014|15 amounted
to a net expense of EUR 11.6 million (Q1-Q3 2013|14: net expense of
EUR 21.7 million); the year-on-year improvement resulted primarily
from net currency translation gains. With an income tax expense of
EUR 30.8 million, corresponding to a tax rate of 27.3% (Q1-Q3
2013|14: 21.6%), profit for the period was EUR 82.0 million (Q1-Q3
2013|14: EUR 102.6 million). Earnings per share attributable to
AGRANA shareholders were EUR 5.45 (Q1-Q3 2013|14: EUR 6.80).

Net debt at 30 November 2014 was EUR 284.6 million, down
significantly - by EUR 102.2 million - from the 2013|14 year-end
level. Total assets eased slightly compared with 28 February 2014, to
EUR 2.54 billion, and the equity ratio receded somewhat from 49.9% to
47.6%. The gearing ratio of 23.5% at the interim balance sheet date
was substantially lower (and thus better) than on 28 February 2014,
when it stood at 32.4%.

AGRANA financial resultsfor the first three quarters of 2014|15
(1 March to 30 November 2014)*
EUR million, except %

Q1-3 2014|15 Q1-3 2013|14
Revenue 1,914.4 2,259.3
EBITDA** 168.2 188.7
Operating profit*** 108.0 129.8
Share of results of equity-accounted joint ventures 20.1 22.8
Exceptional items (3.7) 0.0
Operating profit (EBIT) 124.4 152.6
EBIT margin 6.5% 6.8%
Net financial items (11.6) (21.7)
Income tax (30.8) (28.3)
Profit for the period 82.0 102.6
Investment**** 62.5 93.3

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

Sugar segment

Q1-3 2014|15 Q1-3 2013|14
Revenue 563.4 805.4
Operating profit (EBIT) 29.0 51.3
EBIT margin 5.2% 6.4%

Sugar segment revenue in the first three quarters of 2014|15 declined
by a significant 30.1% year-on-year to EUR 563.4 million. 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. Revenue from by- products rose slightly. As expected amid
the fall in sugar prices, EBIT too, at EUR 29.0 million, was down
significantly from the high year-ago value.

Starch segment

Q1-3 2014|15 Q1-3 2013|14
Revenue 535.4 547.8
Operating profit (EBIT) 45.5 42.5
EBIT margin 8.5% 7.8%

Revenue in the Starch segment in the first nine months of 2014|15 was
EUR 535.4 million, or 2.3% below the year-ago value. The decrease was
attributable mainly to lower selling prices, which were not fully
offset by higher sales volumes. At EUR 45.5 million, EBIT was up 7.1%
year-on-year and the EBIT profit margin expanded by almost one
percentage point to 8.5% thanks to lower raw material and energy
prices.

Fruit segment

Q1-3 2014|15 Q1-3 2013|14
Revenue 815.6 906.1
Operating profit (EBIT) 49.9 58.8
EBIT margin 6.1% 6.5%

Fruit segment revenue in the first three quarters of 2014|15 declined
by 10.0% to EUR 815.6 million. In fruit preparations, sales
quantities were in line with the prior-year level, but revenue eased
by about 3%, owing especially to foreign exchange effects. The
revenue reduction of about one-quarter in the fruit juice concentrate
business resulted from reduced sales quantities and sharply lower
selling prices. Fruit segment EBIT in the first three quarters was
EUR 49.9 million, a 15.1% decrease from one year earlier. In the
fruit preparations activities, a provisioning expense for moving the
Kröllendorf plant to Gleisdorf, as well as currency translation
effects, detracted from earnings.

Outlook

For the 2014|15 financial year as a whole, AGRANA continues to expect
a significant decrease in Group revenue (2013|14: EUR 2,841.7
million), driven by much lower average prices than last year. For
operating profit (EBIT), the Group is projecting a significant
reduction (2013|14: EUR 167.0 million), as a result of the price
declines evident especially for sugar and ethanol. In 2014|15 the
AGRANA Group's total investment of about EUR 95 million will exceed
depreciation by about 15%, but will be significantly less than in the
prior year.

About AGRANA

AGRANA turns agricultural raw materials into high-quality foods and
numerous 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. AGRANA is also the world market leader in fruit
preparations and Europe's largest producer of fruit juice
concentrates.

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: +43-1-21137-12926
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