USA MENU NEWS USA News Details BACK AGRANA REAFFIRMS FULL-YEAR FORECAST, WITH SIG­NI­FIC­ANT EBIT GROWTH IN 2021|22 FINANCIAL YEAR Earnings in first half of 2021|22 still below one year earlier DATE: 14.10.2021 AGRANA, the fruit, starch and sugar company, generated revenue of € 1,424.4 million in the first half of the 2021|22 financial year, a moderate increase of 8.8% year-on-year (H1 prior year: € 1,309.3 million). Operating profit (EBIT) declined by 19.7% to € 44.8 million (H1 prior year: € 55.8 million). The EBIT reduction was attributable to higher raw material and energy costs, a decrease in sales volumes of fruit juice concentrates from the 2020 crop, and lower margins in the Sugar segment. AGRANA Chief Executive Officer Markus Mühleisen says: “Earnings in the first half of 2021|22, as expected, were below the year-earlier level. Despite an extremely volatile business environment, we reiterate our positive forecast for the full 2021|22 financial year and expect an increase of at least 10% in EBIT. A heterogeneous business trajectory since the outbreak of the Covid-19 pandemic led to sharp swings between the quarters of the prior year, which is resulting in some base effects in the opposite direction this financial year. Following a weaker first half of the year, we are projecting a gradual earnings improvement in the second half.” AGRANA Group con­sol­id­ated financial results € million, except % H1 2021|22 H1 2020|21 Q2 2021|22 Q2 2020|21 Revenue 1,424.4 1,309.3 718.6 656.7 EBITDA[1] 94.0 101.1 49.2 46.4 Operating profit before exceptional items and results of equity-accounted joint ventures 41.0 47.4 22.3 19.3 Share of results of equity-accounted joint ventures 6.1 8.9 3.9 5.0 Exceptional items (2.3) (0.5) (2.3) (0.5) Operating profit [EBIT] 44.8 55.8 23.9 23.8 EBIT margin 3.1% 4.3% 3.3% 3.6% Profit for the period 27.1 34.4 15.0 15.2 Investment[2] 30.3 27.8 16.0 16.7 [1] EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation. [2]Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill. The Group’s net financial items amounted to an expense of € 7.1 million, down from an expense of € 9.1 million in the year-earlier period, thanks primarily to an improvement in currency translation differences. After an income tax expense of € 10.6 million, corresponding to a tax rate of 28.1% (H1 prior year: 26.3%), profit for the period was € 27.1 million (H1 prior year: € 34.4 million). Net debt as of 31 August 2021 stood at € 485.8 million, up € 42.3 million from the year-end level of € 443.5 million marked on 28 February 2021. The gearing ratio rose accordingly to 36.7% as of the interim balance sheet date (28 February 2021: 33.4%). Fruit segment € million, except % H1 2021|22 H1 2020|21 Q2 2021|22 Q2 2020|21 Revenue 633.4 601.8 312.7 298.1 Operating profit [EBIT] 25.8 30.1 9.9 14.1 EBIT margin 4.1% 5.0% 3.2% 4.7% Fruit segment revenue in the first half of 2021|22 grew by 5.3% year-on-year. The revenue growth in the fruit preparations business stemmed from higher sales volumes. Revenue in the fruit juice concentrate activities declined slightly for price and volume reasons. EBIT of the Fruit segment was off 14.3% from the first half of the prior year. The reason lay in the fruit juice concentrate business, which saw a decrease in delivery volumes in combination with lower contribution margins for apple juice concentrate made from the 2020 crop. Starch segment € million, except % H1 2021|22 H1 2020|21 Q2 2021|22 Q2 2020|21 Revenue 476.2 407.2 242.2 202.8 Operating profit [EBIT] 29.0 34.7 17.5 17.7 EBIT margin 6.1% 8.5% 7.2% 8.7% The Starch segment’s revenue in the first half of 2021|22 rose by 17.1% from the year-earlier comparative period. Higher volumes of core products and by-products were demanded than in the first half of the prior year. The ethanol price moved within a high trading range, averaging € 623 per cubic metre in the first six months of 2021|22, or € 44 more than in the year-ago period. The continuous rise in grain prices since the autumn of 2020 was partly passed on in adjusted prices for starches and by-products on the sales side. EBIT for the Starch segment decreased by 16.4% from the first six months of the prior year. The main reason for this was a significant year-on-year increase in purchase prices for wheat, corn (maize) and energy which could not yet be fully offset by adjusting product prices. Higher depreciation as a result of the major investments made in recent years also had a negative impact on earnings. Sugar segment € million, except % H1 2021|22 H1 2020|21 Q2 2021|22 Q2 2020|21 Revenue 314.2 300.3 163.7 155.8 Operating (loss) [EBIT] (10.0) (9.0) (3.5) (8.0) EBIT margin (3.2%) (3.0%) (2.1%) (5.1%) The Sugar segment’s revenue in the first half of 2021|22 was up slightly from one year earlier. This positive development was driven primarily by an increase in sugar selling prices. In the 2020 sugar campaign, AGRANA’s own production was below average due to insect pests, especially in Austria. The resulting higher volumes of sugar reselling and refining, with associated lower margins, were a key driver of the reduced Sugar EBIT performance in the first six months of 2021|22. Outlook Despite the continuing substantial challenges arising from the Covid-19 pandemic and high raw material and energy costs, the Group’s operating profit (EBIT) for the full 2021|22 financial year is expected to mark a significant increase. Group revenue is projected to show moderate growth. Due to the ongoing coronavirus pandemic and the associated strong volatility in all business segments, this forecast remains subject to very high uncertainty. In 2021|22 the Group’s investment spending of € 95 million will be substantially below the level of depreciation of approximately € 120 million. “The coronavirus pandemic is not over yet. In the coming months, volatile markets both on the purchasing and sales sides will continue to demand our close attention. We are confident that we will master these challenges well. We have already taken measures in the past quarters to both deal with the price increases faced in procurement and to reflect the higher production costs in adjusted sales prices,” remarks CEO Mühleisen in conclusion. DOWNLOAD PRESS RELEASE BACK USA News Details SEARCH CONTACT LOCATION © AGRANA Beteiligungs-AG Imprint Privacy Principles California Supply Chains Act Cookie settings 981 Close CONTACT Worldwide locations & find contacts. We use cookies and analysis software to make our website as user-friendly as possible. By clicking on "Accept all", you agree to the use of all cookies. You can change your cookie settings at any time. You can find more information in our privacy policy. ACCEPT ALL CUSTOMIZE REJECT ALL