Details

2022|23 at a glance (year ended 28 February 2023)

• Revenue: € 3,637.4 million (+25.4%; prior year: € 2,901.5 million)
• Operating profit before exceptional items and results of equity-accounted joint ventures: € 158.4 million (+83.1%; prior year: € 86.5 million)
• Operating profit (EBIT): € 88.3 million (+257.5%; prior year: € 24.7 million)
• Earnings per share: € 0.25 (+225.0%; prior year: loss per share of € 0.20)
• Equity ratio: 41.8% (prior year: 48.5%)
• Dividend proposal for 2022|23: € 0.90 per share (dividend for 2021|22: € 0.75 per share)

The AGRANA Group’s revenue of € 3,637.4 million in the 2022|23 financial year was significantly higher than in the year before, and its operating profit (EBIT) of € 88.3 million greatly surpassed the prior-year figure of € 24.7 million. “Operating in an environment marked by the war in Ukraine and the associated further increases in raw material and energy prices and in market volatility, we managed the last financial year’s challenges very effectively. In the Sugar segment we achieved the turnaround, and the Starch segment had a solid earnings performance thanks especially to high ethanol prices in the first half of 2022|23 and a flourishing wheat gluten business. In the Fruit segment, we are glad that our colleagues in Ukraine have so far remained physically unscathed by the hostilities,” said AGRANA CEO Markus Mühleisen.

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[1] EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
[2] Operating profit before exceptional items and results of equity-accounted joint ventures
[3] Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.
[4] Average number of full-time equivalents in the financial year.

Net financial items amounted to an expense of € 26.5 million in the 2022|23 financial year (prior year: net expense of € 16.1 million), a deterioration driven primarily by more-adverse currency translation effects. One component that was also higher in amount than one year ago was net interest expense, as the cost of capital in the markets rose very significantly since summer 2022.

Profit before tax jumped strongly from the prior year’s € 8.6 million to € 61.7 million. After an income tax expense of € 37.0 million, representing a tax rate of 60.0% (prior year: 241.7%), the Group registered a profit for the period of € 24.7 million (prior year: loss for the period of € 12.2 million). Profit for the period attributable to shareholders of AGRANA was € 15.8 million (prior year: loss of € 12.6 million); earnings per share rose to a positive € 0.25 (prior year: loss per share of € 0.20).

Total assets as of 28 February 2023, at € 3.0 billion, were up significantly from one year earlier (28 February 2022: € 2.6 billion), with an equity ratio of 41.8% (28 February 2022: 48.5%). Net debt as of 28 February 2023 stood at € 684.9 million, up € 152.9 million from the 2021|22 year-end level. The gearing ratio (net debt to total equity) at the balance sheet date was thus 54.5% (28 February 2022: 41.5%).

In line with the long-term orientation of AGRANA’s dividend policy of continuity, the Management Board will propose to the Annual General Meeting to pay a dividend of € 0.90 per share for the year (dividend for 2021|22: € 0.75 per share).

Revenue in the Fruit segment showed significant growth of 18.5% compared to the previous year. The increase was substantially driven by a combination of price gains due to the significantly risen raw material and production costs in fruit preparations, and higher sales volumes of fruit juice concentrates.

EBIT in the Fruit segment was negatively affected by a net exceptional items expense of € 89.7 million (for goodwill impairment), after a net exceptional items expense of € 67.7 million in the prior year. In addition to the ongoing war in Ukraine and the upheaval in energy and commodity markets, it was rapidly rising capital costs in particular that triggered an impairment test for the Fruit cash-generating unit in the second quarter of 2022|23.

Market activity in the Starch segment’s product markets in 2022|23 was influenced by the war in Ukraine and its ripple effects. Extreme hikes in raw material and energy costs made it necessary to pass on the rise in manufacturing costs to industrial customers. At the same time, customers valued AGRANA’s ability to deliver product and provide security of supply. Starch segment revenue increased by 28% as a result of the adjustments in sales prices across the entire product portfolio.

High ethanol prices in the first half of 2022|23 and a strong wheat gluten business were the main reasons for an improvement of 11.9% in the Starch segment’s EBIT.

Revenue in the Sugar segment grew by 34.6% from the prior year. Sales volumes were stable overall, with moderate increases in volumes sold into the industrial market and with declines in the reseller sector.

The considerable EBIT operating profit marked a very significant turnaround from the loss of the previous year. Substantial increases in sugar selling prices significantly outweighed the sharp hikes in raw material and energy prices.

Outlook

For the 2023|24 financial year, AGRANA expects a very significant increase in operating profit (EBIT). Group revenue is projected to show significant growth.

Key sources of uncertainty for the forecast remain the war in Ukraine and its consequences. Due to the unpredictability of the further course of the war, effects such as exceptional cost increases and demand declines cannot be ruled out. Since the outbreak of the war, the volatility in the Group’s product markets and procurement markets further intensified. AGRANA’s projections are based on the assumptions that the physical supplies of energy and raw materials remain assured and that purchasing price increases, especially for raw materials and energy, can be passed on in adjusted customer contracts.

Total investment across the three business segments in the 2023|24 financial year, at approximately € 150 million, is to significantly exceed both the 2022|23 value and this year’s budgeted depreciation of about € 120 million. About 16% of this capital expenditure will be for emission reduction measures in the Group’s own production operations as part of the AGRANA climate strategy. The goal is to reduce the Group’s own emissions to net-zero by 2040. By 2050, the AGRANA Group is committed to reaching net-zero emissions in its entire value chain.

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