EANS-News: AGRANA achieves significant EBIT growth in first quarter of 2016|17

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quarterly report/First quarter results 2016|17 (ended 31.05.16)

Group revenue also expands

Outlook: Expecting moderate growth in EBIT and revenue for 2016|17
financial

The sugar, starch and fruit products manufacturer AGRANA launched the
2016|17 financial year with quarterly growth in revenue and EBIT. The
Group's revenue rose to EUR 665.5 million in the first quarter (ended
31 May 2016), an increase of 8.6% from the first three months of the
prior year. Operating profit (EBIT), at EUR 47.0 million, was up by a
substantial 49.2% from the year-earlier level.

While EBIT in the Starch segment eased slightly, additional
contribution margins in the Sugar segment led to positive Sugar EBIT
of EUR 10.0 million, a significant improvement from the prior year's
loss-making first quarter. In the Fruit segment, EBIT also improved
significantly thanks to a good sales volume trend for fruit
preparations and a recovery in the fruit juice concentrate business.

As AGRANA CEO Johann Marihart summarises the successful first
quarter: "We are off to a good start in the new financial year, which
reaffirms our positive view for the full year 2016|17. A gratifying
aspect is that - in addition to the Starch segment and the fruit
preparations business - the Sugar segment and the fruit juice
concentrate division also contributed to this positive development."

AGRANA Group financial results
EUR million, except %

Q1 2016|17 Q1 2015|16
Revenue 665.5 612.7
EBITDA* 58.1 43.2
Operating profit (EBIT) 47.0 31.5
EBIT margin 7.1% 5.1%
Net financial items (7.5) (1.7)
Income tax (8.7) (8.3)
Profit for the period 30.8 21.5
Investment** 18.6 17.9

*EBITDA represents operating profit before exceptional items, results
of equity- accounted joint ventures, depreciation and amortisation.
**Investment represents purchases of property, plant and equipment
and intangible assets, excluding goodwill.

Net financial items in the first quarter amounted to a net expense of
EUR 7.5 million (Q1 prior year: net expense of EUR 1.7 million); the
higher expense resulted from an impairment charge on a current
finance receivable in Ukraine. After an income tax expense of EUR 8.7
million, corresponding to a tax rate of approximately 22.0% (Q1 prior
year: 27.9%), profit for the period was EUR 30.8 million (Q1 prior
year: EUR 21.5 million). Earnings per share attributable to AGRANA
shareholders increased to EUR 2.07 (Q1 prior year: EUR 1.45).

Total assets showed a small uptick compared with the 29 February 2016
year-end, rising to EUR 2.26 billion from EUR 2.24 billion, and the
equity ratio edged higher to 54.4% (29 February 2016: 53.5%). Net
debt as of 31 May 2016 stood at EUR 485.8 million, a seasonal
significant increase of EUR 80.0 million from the 2015|16 year-end
level. The gearing ratio thus rose to 39.5% as of the quarterly
balance sheet date (29 February 2016: 33.8%).

Sugar Segment

Q1 2016|17 Q1 2015|16
Revenue 178.4 147.8
Operating profit (EBIT) 10.0 (1.9)
EBIT margin 5.6% (1.3%)

In the financial first quarter, revenue in the Sugar segment grew by
a significant 20.7% year-on-year to EUR 178.4 million. This was
driven both by higher sugar selling prices as a result of the tighter
sugar supply, and by greater sales volumes. Through the growth in
revenue and the resulting rise in contribution margins, EBIT improved
markedly to EUR 10.0 million.

Starch segment

Q1 2016|17 Q1 2015|16
Revenue 179.4 174.1
Operating profit (EBIT) 13.8 14.6
EBIT margin 7.7% 8.4%

Starch segment revenue increased by 3.0% in the first quarter to EUR
179.4 million. This slight gain relative to the year-ago quarter was
mainly volume- driven. Revenue growth was achieved particularly with
modified starches and in feedstuffs trading. At the same time, lower
prices led to a revenue decrease for bioethanol. EBIT, at EUR 13.8
million, was a little short of the comparative prior-period result of
EUR 14.6 million. The EBIT reduction of 5.5% resulted primarily from
the lower ethanol quotations.

Fruit segment

Q1 2016|17 Q1 2015|16
Revenue 307.7 290.8
Operating profit (EBIT) 23.2 18.8
EBIT margin 7.5% 6.5%

Revenue in the Fruit segment increased moderately by 5.8% in the
first quarter to EUR 307.7 million. In the fruit preparations
division, a positive trend in sales volumes was offset by mildly
reduced selling prices outside the EU (negatively affected by
exchange rates, notably in Eastern Europe and Latin America), thus
producing only slight overall growth in the division's revenue.
Revenue in the fruit juice concentrate division increased
significantly on a rise in sales prices. EBIT of EUR 23.2 million
represented growth of 23.4% from one year earlier. Both the fruit
preparations activities (thanks to increased sales volumes) and the
fruit juice concentrate business (due to higher apple juice
concentrate prices from the 2015 crop) delivered a significant
improvement in earnings.

Outlook

AGRANA currently expects both Group revenue and operating profit
(EBIT) to increase moderately for the 2016|17 financial year. Total
investment by the Group in the year, at about EUR 114 million, will
significantly exceed depreciation of just under EUR 90 million.

About AGRANA AGRANA converts agricultural raw materials into
high-quality foods and numerous industrial intermediate products.
About 8,600 employees at more than 50 production sites worldwide
generate annual Group sales of around EUR 2.5 billion. Established in
1988, the company today is the leading sugar producer in Central and
Eastern Europe, its Starch segment is a major European manufacturer
of specialty products, and AGRANA is the largest producer of
bioethanol in Austria. AGRANA is also the world market leader in
fruit preparations and Europe's largest maker of fruit juice
concentrates.

This announcement is available in German and English at
www.agrana.com.

Further inquiry note:
AGRANA Beteiligungs-AG

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

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