Q1-Q3 2024|25
INTERIM STATEMENT FOR THE FIRST THREE QUARTERS OF 2024|25
AGRANA Beteiligungs-AG | First three quarters of 2024|25
First three quarters of 2024|25 at a glance
- Revenue: € 2,707.8 million (-8.1%; Q1-Q3 prior year: € 2,947.8 million)
- EBIT: € 51.1 million (-65.8%; Q1-Q3 prior year: € 149.4 million)
- EBIT margin: 1.9% (Q1-Q3 prior year: 5.1%)
- Profit for the period: € 14.5 million (-81.4%; Q1-Q3 prior year: € 78.1 million)
- Equity ratio: 43.2% (29 February 2024: 43.2%)
- Gearing ratio1: 50.5% (29 February 2024: 51.0%)
- Number of employees (FTE)2: 9,015 (Q1-Q3 prior year: 8,971)
- Ratio of net debt to total equity.
- Average number of full-time equivalents in the reporting period.
Contents
- Letter from the Management Board
- Group report
- AGRANA Group results for the first three quarters of 2024|25
- Results in each business segment
11 | Management of risks and opportunities |
11 | Corporate Governance |
11 | Number of employees |
- Significant events after the interim reporting date
- Outlook
14 | Other information |
2
AGRANA Beteiligungs-AG | First three quarters of 2024|25
Letter from the Management Board
Dear Investor, Dear Stakeholder,
Nine months into the financial year, our business performance remains less than satisfactory, with operating profit (EBIT) of € 51.1 million in the first three quarters (Q1-Q3 2023|24: € 149.4 million). As predicted, EBIT in the third quarter of 2024|25 was very significantly below the year-earlier value, and narrowly negative on balance. Economic activity in Europe is sluggish and Austria and Germany are in recession. Volatility on the commodity and energy purchasing side continues to be high. All in all, a persistently very challenging environment for the whole organisation.
An important positive is that the Fruit segment, despite the difficult economic setting, delivered a solid performance in the first three quarters. The Starch segment's EBIT declined sharply year-on-year, particularly in the last three months as a result of the flood damage of September 2024, which has now been assessed; the starch business has been heavily affected by cyclical downward market trends throughout the financial year. The Sugar segment remains the Group's biggest concern: In this business, we are back into difficult times that will continue in the coming 2025|26 financial year. The high sugar stocks (inventories) and declining sugar selling prices are known issues. In addition, since the full start of the beet campaign in October 2024, it is becoming apparent that the campaign expenses for the 2024|25 sugar marketing year will be higher than expected, mainly due to lower sugar levels in the beet crop. This is largely responsible for the fact that a very significant decline in EBIT at Group level is now projected for the 2024|25 financial year.1
In light of these unfavourable short- to medium-term prospects, our NEXT LEVEL strategy, which was unanimously adopted by the Supervisory Board on 12 November 2024, takes on even greater significance in the drive to put AGRANA's earnings back on track and guide the company into more prosperous times. The core element of the new strategy is a restructuring of the whole AGRANA Group into a streamlined strategic holding company with two strategic business areas: "Agricultural Commodities & Specialities" and "Food & Beverage Solutions". This reorganisation into two overarching, interacting business areas enables a thoughtful pooling of competencies within the AGRANA Group and allows the maximum utilisation of existing synergy potential to boost efficiency, innovation and profitable growth. The "Agricultural Commodities & Specialities" segment will primarily focus on cost-side synergies, while the "Food & Beverage Solutions" side will concentrate on market synergies. The emphasis in Food & Beverage Solutions - besides cost and process optimisation - is also on increased collaboration, co-creation and innovation. We will generate additional impetus for growth from the interaction between the two areas. The transformation measures extend across all parts of the Group. Initial details on the implementation of the savings impacts of EUR 80 million to EUR 100 million per year resulting from AGRANA NEXT LEVEL, which will be fully effective from FY 2027|28, have already been communicated. The first progress report will be presented to the public at our Capital Markets Day on 16 to 17 January 2025.
In addition to our structural transformation at the holding company and divisional level, sustainability remains a central plank of the AGRANA NEXT LEVEL strategy. We continue to be on track to achieve net-zero emissions by 2040 for Scope 1 and 2, and by 2050 at the latest for Scope 3. This commitment is not only part of our social responsibility, but also a strategic necessity in order to remain competitive in the long term.
Looking back at 2024, we would like to thank all our partners, customers, suppliers, employees and other stakeholders for the valued collaboration and relationships. We wish you all the best, good health and much success in the new year 2025.
The Management Board of AGRANA Beteiligungs-AG
Stephan Büttner, CEO | Norbert Harringer | Stephan Meeder |
1 Also see the Outlook section on page 12 (including the disclaimer). | 3 |
AGRANA Beteiligungs-AG | First three quarters of 2024|25
Group report
AGRANA Group results for the first three quarters of 2024|25
Revenue and earnings
Consolidated income statement | Q1-Q3 | Q1-Q3 |
(condensed) | 2024|25 | 2023|24 |
€m, except as otherwise indicated | ||
Revenue | 2,707.8 | 2,947.8 |
EBITDA1 | 138.1 | 249.9 |
Operating profit before exceptional | ||
items and results of equity-accounted | ||
joint ventures | 54.3 | 164.8 |
Share of results of equity-accounted | ||
joint ventures | 2.5 | 0.4 |
Exceptional items | (5.7) | (15.8) |
Operating profit [EBIT] | 51.1 | 149.4 |
EBIT margin | 1.9% | 5.1% |
Net financial items | (24.3) | (37.7) |
Profit before tax | 26.8 | 111.7 |
Income tax expense | (12.3) | (33.6) |
Profit for the period | 14.5 | 78.1 |
Attributable to shareholders | ||
of the parent | 11.4 | 72.5 |
Earnings per share (€) | 0.18 | 1.16 |
In the financial first three quarters of 2024|25 (the nine months ended 30 November 2024), revenue of the AGRANA Group was € 2,707.8 million, down moderately from the same period one year earlier despite slightly higher sales volumes, with the decrease being due to lower prices in the Starch and Sugar segments.
Operating profit (EBIT) in the first three quarters of 2024|25, at € 51.1 million, represented a very significant reduction from the year-ago level of € 149.9 million. EBIT in the Fruit segment grew to € 72.9 million (Q1-Q3 prior year: € 50.1 million) thanks to a significantly better performance in the fruit preparations activities. Meanwhile, weakened margins on starch and sacchari- fication products led to a very significant decrease
Consolidated income statement | Q3 | Q3 |
(condensed) | 2024|25 | 2023|24 |
€m, except as otherwise indicated | ||
Revenue | 846.1 | 988.3 |
EBITDA1 | 30.5 | 86.2 |
Operating (loss)/profit before | ||
exceptional items and results | ||
of equity-accounted joint ventures | (1.0) | 52.1 |
Share of results of equity-accounted | ||
joint ventures | (0.7) | 2.6 |
Exceptional items | (3.8) | (16.2) |
Operating (loss)/profit [EBIT] | (5.5) | 38.5 |
EBIT margin | (0.7%) | 3.9% |
Net financial items | (4.9) | (13.4) |
(Loss)/profit before tax | (10.4) | 25.1 |
Income tax benefit/(expense) | 1.4 | (11.3) |
(Loss)/profit for the period | (9.0) | 13.8 |
Attributable to shareholders | ||
of the parent | (10.3) | 11.9 |
(Loss)/earnings per share (€) | (0.17) | 0.19 |
in Starch segment EBIT to € 28.4 million (Q1-Q3 prior year: € 58.0 million). In the Sugar segment, reduced sales prices were responsible for a deterioration in the EBIT result to a deficit of € 50.2 million (Q1-Q3 prior year: profit of € 41.3 million). The Group's net financial items amounted to an expense of € 24.3 million, down from an expense of € 37.7 million in the year-earlier period, thanks primarily to a significant improvement in currency translation differences. After an income tax expense of
- 12.3 million, corresponding to a tax rate of 45.9% (Q1-Q3 prior year: 30.1%), the Group's profit for the period was
- 14.5 million (Q1-Q3 prior year: € 78.1 million). Earnings per share attributable to AGRANA shareholders decreased to € 0.18 (Q1-Q3 prior year: € 1.16.
Fruit segment | Sugar segment | ||
Sugar segment | 29.2% | ||
45.2% | Fruit segment | ||
26.5% | (€ 861.5m) | ||
(€ 1,223.4m) | 40.0% | ||
(€ 717.4m) | |||
(€ 1,178.9m) | |||
Q1-Q3 2024|25 | Q1-Q3 2023|24 |
Revenue by | Revenue by |
segment | segment |
Starch segment
Starch segment
28.3%
30.8%
(€ 767.0m)
(€ 907.4m)
- 1 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
AGRANA Beteiligungs-AG | First three quarters of 2024|25
Investment1
In the first three quarters of 2024|25, AGRANA invested a total of € 72.4 million, a marginal increase of € 1.9 million from the year-earlier comparative period. Capital expenditure by segment was as follows:
Q1-Q3 | Q1-Q3 | ||
Investment | 2024|25 | 2023|24 | Change |
€m, except % | |||
Fruit segment | 28.8 | 25.7 | 12.1% |
Starch segment | 21.2 | 22.8 | -7.0% |
Sugar segment | 22.4 | 22.0 | 1.8% |
Group | 72.4 | 70.5 | 2.7% |
In addition to regular projects for product quality and energy efficiency improvement and for asset replacement and maintenance across all production sites, the following individual investments made are worthy of note:
Fruit segment
- Capacity expansion in Jacona, Mexico
- Expansion of the food service area in Centerville, Tennessee, USA
- Expansion of the solar power supply in China, France and South Africa
Starch segment
- Increase of production capacity for drum-dried, non-food specialty starches in Gmünd, Austria
- Increase of bagging capacity for wheat starch and gluten in Pischelsdorf, Austria
- Upgrading of the biofiltration plant in Aschach, Austria
Sugar segment
- Optimisation of the evaporator stations in Roman, Romania, and in Kaposvár, Hungary
- Conversion of the fuel supply from coal to natural gas in Opava, Czech Republic
Additionally, in the first three quarters, € 24.8 million (Q1-Q3 prior year: € 23.0 million) was invested in the equity-accounted joint ventures (the HUNGRANA and STUDEN groups and Beta Pura GmbH; values given for these entities represent the totals rather than AGRANA's proportion of ownership).
1 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill. | 5 |
AGRANA Beteiligungs-AG | First three quarters of 2024|25
Cash flow
Consolidated cash flow statement (condensed) | Q1-Q3 | Q1-Q3 | Change |
2024|25 | 2023|24 | ||
€m, except % | |||
Operating cash flow before changes in working capital | 165.8 | 275.9 | -39.9% |
Changes in working capital | 27.6 | (137.1) | 120.1% |
Interest received and paid and income tax paid, net | (42.1) | (34.0) | -23.8% |
Net cash from operating activities | 151.3 | 104.8 | 44.4% |
Net cash (used in) investing activities | (63.5) | (64.5) | 1.6% |
Net cash (used in) financing activities | (75.6) | (67.3) | -12.3% |
Net increase/(decrease) in cash and cash equivalents | 12.2 | (27.0) | 145.2% |
Effects of movement in foreign exchange rates and | |||
hyperinflation adjustments on cash and cash equivalents | (6.8) | (14.8) | 54.1% |
Cash and cash equivalents at beginning of period | 88.1 | 118.3 | -25.5% |
Cash and cash equivalents at end of period | 93.5 | 76.5 | 22.2% |
The item "operating cash flow before changes in working capital" declined to € 165.8 million in the first three quarters of 2024|25 (Q1-Q3 prior year: € 275.9 million) as a result mainly of the very significantly lower profit for the period. After a decrease of € 27.6 million in working capital (Q1-Q3 prior year: increase of € 137.1 million), net cash from operating activities in the first nine months of 2024|25 was € 151.3 million (Q1-Q3 prior year: € 104.8 million). Net cash used in investing activities was € 63.5 million (Q1-Q3 prior year: net cash use of € 64.5 million) amid slightly higher payments for purchases of property, plant and equipment and intangibles. With a constant dividend payment, a slightly larger increase in borrowings compared to the year-ago period brought the net cash outflow from financing activities to € 75.6 million (Q1-Q3 prior year: net cash outflow of € 67.3 million). Free cash flow improved very significantly in the first three quarters of 2024|25 to € 87.8 million (Q1-Q3 prior year: € 40.3 million).
6
AGRANA Beteiligungs-AG | First three quarters of 2024|25
Financial position
Consolidated balance sheet (condensed) | 30 Nov 2024 | 29 February 2024 | Change | ||
€m, except % and pp | |||||
ASSETS | |||||
Non-current assets | 1,025.9 | 1,031.2 | -0.5% | ||
Of which intangible assets, including goodwill | 113.6 | 112.4 | 1.1% | ||
Of which property, plant and equipment | 778.4 | 797.6 | -2.4% | ||
Current assets | 1,782.3 | 1,858.2 | -4.1% | ||
Of which inventories | 1,070.6 | 1,170.8 | -8.6% | ||
Of which trade receivables | 466.1 | 441.9 | 5.5% | ||
Of which cash and cash equivalents | 93.5 | 88.1 | 6.1% | ||
Total assets | 2,808.2 | 2,889.4 | -2.8% | ||
EQUITY AND LIABILITIES | |||||
Equity | 1,213.1 | 1,248.4 | -2.8% | ||
Equity attributable to shareholders of the parent | 1,149.2 | 1,186.7 | -3.2% | ||
Non-controlling interests | 63.9 | 61.7 | 3.6% | ||
Non-current liabilities | 578.2 | 628.7 | -8.0% | ||
Of which borrowings | 476.5 | 523.6 | -9.0% | ||
Current liabilities | 1,016.9 | 1,012.3 | 0.5% | ||
Of which borrowings | 249.8 | 218.8 | 14.2% | ||
Of which trade payables | 546.4 | 561.6 | -2.7% | ||
Total equity and liabilities | 2,808.2 | 2,889.4 | -2.8% | ||
Net debt | 612.2 | 636.1 | -3.8% | ||
Gearing ratio1 | 50.5% | 51.0% | -0.5pp | ||
Equity ratio | 43.2% | 43.2% | -0.0pp |
Total assets, at € 2,808.2 million as of 30 November 2024, were down slightly from the 2023|24 year-end balance sheet date, while the equity ratio of 43.2% was the same as on 29 February 2024. The amount of non-current assets was virtually unchanged at € 1,025.9 million. Current assets, at € 1,782.3 million, decreased slightly, with inventories reduced while trade receivables increased. Non-current liabilities eased moderately to € 578.2 million. Current liabilities remained constant overall at € 1,016.9 million, as an increase in short-term borrowings coincided with a mild reduction in trade payables. Net debt as of 30 November 2024 stood at € 612.2 million, a decrease of € 23.9 million from the year-end level of 29 February 2024. The gearing ratio (net debt to total equity) at the quarterly balance sheet date was 50.5%
(29 February 2024: 51.0%).
Uncertainty in assumptions and judgements arises from a volatile market environment with regard to the costs of raw materials, energy, transport and other expense items. In addition, the future trajectories of macroeconomic conditions, such as interest rates and inflation, are also subject to uncertainty.
1 Ratio of net debt to total equity. | 7 |
AGRANA Beteiligungs-AG | First three quarters of 2024|25
Fruit segment
Share of Group revenue
45.2%
Financial results
Q1-Q3 | Q1-Q3 | |
Fruit segment | 2024|25 | 2023|24 |
€m, except % | ||
Revenue | 1,223.4 | 1,178.9 |
EBITDA1 | 103.6 | 97.7 |
Operating profit before exceptional | ||
items and results of equity-accounted | ||
joint ventures | 74.8 | 66.2 |
Exceptional items | (1.9) | (16.1) |
Operating profit (EBIT) | 72.9 | 50.1 |
EBIT margin | 6.0% | 4.2% |
Q3 | ||
Q3 | ||
Fruit segment | 2024|25 | 2023|24 |
€m, except % | ||
Revenue | 398.9 | 387.8 |
EBITDA1 | 33.0 | 34.9 |
Operating profit before exceptional | ||
items and results of equity-accounted | ||
joint ventures | 22.5 | 22.5 |
Exceptional items | 0.0 | (16.1) |
Operating profit (EBIT) | 22.5 | 6.4 |
EBIT margin | 5.6% | 1.7% |
Fruit segment revenue in the first nine months of 2024|25 grew slightly from the year-ago level, to € 1,223.4 million. On the fruit preparations side, revenue rose for volume reasons, while the increase in fruit juice concentrate revenue was driven both by volumes and prices.
EBIT of the segment as a whole rose to € 72.9 million in the first three quarters of the financial year (Q1-Q3 prior year: € 50.1 million). In fruit preparations, EBIT was very significantly above the year-ago level. The improvement was attributable partly to a positive operating performance in the Europe region (including Ukraine), in Mexico and Russia, and partly to a base effect, as EBIT in the third quarter of the previous year had been negatively impacted by a non-cash impairment charge of about € 16 million on assets in Asia. The fruit juice concentrate operations also achieved good EBIT, although not matching the very strong result of the prior-year comparative period.
- 1 EBITDA represents operating profit before exceptional items, results of equity accounted joint ventures, and operating depreciation and amortisation.
AGRANA Beteiligungs-AG | First three quarters of 2024|25
Starch segment
Share of Group revenue
28.3%
Financial results
Q1-Q3 | Q1-Q3 | |
Starch segment | 2024|25 | 2023|24 |
€m, except % | ||
Revenue | 767.0 | 907.4 |
EBITDA1 | 59.6 | 92.2 |
Operating profit before exceptional | ||
items and results of equity-accounted | ||
joint ventures | 24.2 | 58.4 |
Share of results of equity-accounted | ||
joint ventures | 4.2 | (0.4) |
Operating profit (EBIT) | 28.4 | 58.0 |
EBIT margin | 3.7% | 6.4% |
Q3 | ||
Q3 | ||
Starch segment | 2024|25 | 2023|24 |
€m, except % | ||
Revenue | 234.1 | 292.6 |
EBITDA1 | 16.9 | 30.6 |
Operating profit before exceptional | ||
items and results of equity-accounted | ||
joint ventures | 4.7 | 19.1 |
Share of results of equity-accounted | ||
joint ventures | (1.2) | 2.7 |
Operating profit (EBIT) | 3.5 | 21.8 |
EBIT margin | 1.5% | 7.5% |
Revenue in the Starch segment in the first three quarters of 2024|25 was € 767.0 million, a level significantly below that of the same period one year earlier, when the war in Ukraine had led to powerful increases in market prices.
Owing to the decline in raw material and energy prices, market prices for the segment's products decreased noticeably year-on-year, which affected the selling prices obtained for the entire Starch portfolio. Prices for ethanol, for example, dropped by about 19% amid a significant fall in Platts prices.
At € 28.4 million, EBIT in the Starch segment was down very significantly year-on-year. The key reason for this was the margin decline in starch products, driven by significantly lower sales prices for core and by-products. For example, the price charged for conventional vital gluten fell by approximately 40%. As a result of reduced raw material and energy input prices, the ethanol business improved its EBIT despite selling at lower prices. The equity-accounted HUNGRANA Group became a positive contributor to segment EBIT again, with a profit share for AGRANA of € 4.2 million (Q1-Q3 prior year: loss of € 0.4 million); capacity utilisation in this Hungarian joint venture improved thanks to lower prices for raw materials and energy.
In the third quarter, the shutdown of the plant in Pischelsdorf, Austria, for several weeks due to flooding had an adverse impact on operating profitability.
1 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation. | 9 |
AGRANA Beteiligungs-AG | First three quarters of 2024|25
Sugar segment
Share of Group revenue
26.5%
Financial results
Q1-Q3 | Q1-Q3 | |
Sugar segment | 2024|25 | 2023|24 |
€m, except % | ||
Revenue | 717.4 | 861.5 |
EBITDA1 | (25.1) | 60.0 |
Operating (loss)/profit before | ||
exceptional items and results of | ||
equity-accounted joint ventures | (44.7) | 40.2 |
Share of results of equity-accounted | ||
joint ventures | (1.7) | 0.8 |
Exceptional items | (3.8) | 0.3 |
Operating (loss)/profit [EBIT] | (50.2) | 41.3 |
EBIT margin | (7.0%) | 4.8% |
Q3 | ||
Q3 | ||
Sugar segment | 2024|25 | 2023|24 |
€m, except % | ||
Revenue | 213.1 | 307.9 |
EBITDA1 | (19.4) | 20.7 |
Operating (loss)/profit before | ||
exceptional items and results of | ||
equity-accounted joint ventures | (28.2) | 10.5 |
Share of results of equity-accounted | ||
joint ventures | 0.5 | (0.1) |
Exceptional items | (3.8) | (0.1) |
Operating (loss)/profit [EBIT] | (31.5) | 10.3 |
EBIT margin | (14.8%) | 3.3% |
The Sugar segment's revenue in the first three quarters of 2024|25, at € 717.4 million, marked a significant reduction from one year earlier, as the negative effect of lower sugar sales prices could not be made up for by slightly higher sales volumes. The trajectory of the EU sugar market was most recently driven by higher European stocks of the commodity, the expectation of increased EU sugar production in the 2024/25 campaign, and declining world market prices.
The Sugar EBIT result in the first nine months of 2024|25 was a deficit of € 50.2 million, a pronounced deterioration from the year-earlier period. This reflected above all the significantly reduced sugar sales prices in the resellers channel. The deficit markets (CEE region) in particular showed downward price pressure. In addition, lower sugar content of the beet than in the previous year and challenging beet quality grades are leading to higher- than-expected production costs in the current sugar campaign. The earnings result of joint ventures too was lower than in the year-ago period; it is determined in large part by the sugar activities of the AGRANA-STUDEN group in Southeastern Europe. The net exceptional items expense included expenses and impairment of non- current assets for the temporary shutdown of raw sugar refining at the AGRANA sugar factory in Buzău, Romania; the packaging facilities at this site continue to be used as before.
101 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
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AGRANA Beteiligungs AG published this content on January 14, 2025, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on January 14, 2025 at 06:37:15.300.