EANS-News: AGRANA's EBIT up more than 30%

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Subtitle: Significant earnings growth also expected for full year
2016|17

6-month report

AGRANA, the Sugar, Starch and Fruit manufacturer, delivered
gratifying results for the first half of 2016|17. The Group's revenue
rose slightly, by 4.5%, to EUR 1,320.3 million (H1 prior year: EUR
1,263.5 million). Operating profit (EBIT) grew to EUR 90.4 million, a
substantial increase of 31.6% from one year earlier. AGRANA Chief
Executive Officer Johann Marihart says: "AGRANA had a good first half
of 2016|17. While EBIT in the Sugar segment improved thanks to a
better market environment, the Fruit segment's earnings grew
significantly on rising sales volumes of fruit preparations and also
as a result of our positive showing in the fruit juice concentrate
business. In the Starch segment as well, despite lower ethanol
prices, EBIT surpassed the high figure reached in the first half of
the prior financial year."

Consolidated financial results of AGRANA Beteiligungs-AG
EUR million, except %

H1 2016|17 H1 2015|16
Revenue 1,320.3 1,263.5
EBITDA* 114.2 93.1
Operating profit before exceptional items** 78.3 58.0
Share of results of equity-accounted joint ventures 15.0 12.0
Exceptional items (2.9) (1.3)
Operating profit (EBIT) 90.4 68.7
EBIT margin 6.8% 5.4%
Net financial items (10.3) (11.2)
Profit for the period 62.6 43.9
Investment*** 42.4 40.8

Q2 2016|17 Q2 2015|16
Revenue 654.8 650.8
EBITDA* 56.1 49.9
Operating profit before exceptional items** 37.7 32.0
Share of results of equity-accounted joint ventures 8.6 6.3
Exceptional items (2.9) (1.1)
Operating profit (EBIT) 43.4 37.2
EBIT margin 6.6% 5.7%
Net financial items (2.8) (9.5)
Profit for the period 31.8 22.4
Investment*** 23.8 22.9

* EBITDA represents operating profit before exceptional items,
results of equity-accounted joint ventures, and operating
depreciation and amortisation ** Operating profit before 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 2016|17 amounted to a net
expense of EUR 10.3 million (H1 prior year: net expense of EUR 11.2
million); this improvement, coming despite an impairment charge on a
current finance receivable in Ukraine in the Fruit segment, was
attributable to more favourable currency translation effects. After
an income tax expense of EUR 17.5 million, corresponding to a tax
rate of approximately 21.8% (H1 prior year: 23.7%), profit for the
period was EUR 62.6 million (H1 prior year: EUR 43.9 million).

Net debt at 31 August 2016 was EUR 397.1 million, or EUR 8.7 million
less than the 2015|16 year-end level. The gearing ratio thus eased to
32.9% as of the quarterly balance sheet date (29 February 2016:
33.8%).

Sugar segment
EUR million, except %

H1 2016|17 H1 2015|16
Revenue 352.0 345.0
Operating profit (EBIT) 18.3 6.4
EBIT margin 5.2% 1.9%

Q2 2016|17 Q2 2014|15
Revenue 173.6 197.2
Operating profit (EBIT) 8.3 8.3
EBIT margin 4.8% 4.2%

Sugar segment revenue in the first half of 2016|17 increased slightly
by 2.0% year-on-year to EUR 352.0 million; this growth rate was
limited by lower sugar sales volumes. Revenue from by-products and
resold products increased. The higher EBIT of EUR 18.3 million was
attributable to a significant rise in spot sales prices in Eastern
Europe from year-ago levels.

Starch segment
EUR million, except %

H1 2016|17 H1 2015|16
Revenue 363.1 352.7
Operating profit (EBIT) 32.0 31.1
EBIT margin 8.8% 8.8%

Q2 2016|17 Q2 2015|16
Revenue 183.7 178.6
Operating profit (EBIT) 18.2 16.5
EBIT margin 9.9% 9.2%

The Starch segment's revenue in the first half of 2016|17 was EUR
363.1 million, somewhat higher than in the same period one year
earlier. The revenue growth from higher sales quantities both in core
and by-products more than made up for the decrease in bioethanol
revenue caused by significantly lower ethanol quotations. EBIT, at
EUR 32.0 million, was slightly better than the good year- earlier
result, due to lower raw material costs.

Fruit segment
EUR million, except %

H1 2016|17 H1 2015|16
Revenue 605.2 565.8
Operating profit (EBIT) 40.1 31.2
EBIT margin 6.6% 5.5%

Q2 2016|17 Q2 2015|16
Revenue 297.5 275.0
Operating profit (EBIT) 16.9 12.4
EBIT margin 5.7% 4.5%

Fruit segment revenue increased by 7.0% in the first half of 2016|17
to EUR 605.2 million. In the fruit preparations division, a positive
trend in sales volumes was counteracted by somewhat reduced selling
prices outside the EU, thus leading to only slight overall growth in
revenue. In the fruit juice concentrate division, revenue increased
significantly on a rise in sales prices of apple juice concentrates
and beverage bases. EBIT of the Fruit segment overall, at EUR 40.1
million, grew by 28.5% from the prior year's comparative period. Both
the fruit preparations business (thanks to increased sales volumes)
and the fruit juice concentrate activities (buoyed by higher prices
of apple juice concentrates and beverage bases from the 2015 crop)
delivered higher contributions to earnings.

Outlook AGRANA expects Group revenue in the full 2016|17 financial
year to show moderate growth. Operating profit (EBIT) now is
projected to increase significantly. Total investment across the
three business segments in the financial year, at approximately EUR
129 million, will again exceed depreciation of about EUR 85 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

Original-Content von: AGRANA Beteiligungs-AG, übermittelt durch news aktuell