EANS-News: AGRANA results for Q1 of 2015|16 (ended 31 May 2015) - Sustained pressure on sugar prices led to decrease in revenue and EBIT - Starch and fruit preparations at year-earlier level

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Financial Figures/Balance Sheet/3-month report

AGRANA, the global sugar, starch and fruit products manufacturer, as
predicted posted reductions in revenue and EBIT in the opening
quarter of the 2015|16 financial year, as a result of lower market
prices. Compared to the year-earlier quarter, the Group's revenue
declined by 5.3% in the first three months, to EUR 612.7 million. As
expected, operating profit (EBIT), at EUR 31.6 million, was down
significantly, with a decline of 40.3% from the prior year's first
quarter. While in the Sugar segment the significant erosion in sales
prices detracted from revenue and led to a negative operating result,
EBIT in the Starch segment improved somewhat. In the Fruit segment,
EBIT eased year-on-year as expected, as a result of a modest dip in
the profit trend in fruit juice concentrates.

"In the Sugar segment we are passing through a challenging financial
year in 2015|16. The first quarter too was marked by lasting downward
pressure on sugar prices. In the Starch and Fruit segments we
achieved a good trend in sales volume. Our diversification across
three business segments will be helpful in delivering solid profit
for the period as a Group in the full financial year," emphasises
Johann Marihart, Chief Executive Officer of AGRANA Beteiligungs-AG.

AGRANA-Group financial results
EUR million, except %

Q1 2015|16 Q1 2014|15
Revenue 612.7 647.2
EBITDA* 43.2 63.5
Operating profit (EBIT) 31.6 52.9
EBIT margin 5.2% 8.2%
Net financial items (1.7) (2.7)
Income tax (8.3) (11.0)
Profit for the period 21.6 39.2
Investment** 17.9 14.9

*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 of 2015|16 amounted to a net
expense of EUR 1.7 million (Q1 of prior year: net expense of EUR 2.7
million); the year-on- year improvement arose primarily from the net
interest result. After an income tax expense of EUR 8.3 million,
corresponding to a tax rate of 27.8% (Q1 of prior year: 21.9%),
profit for the period was EUR 21.6 million (Q1 of prior year: EUR
39.2 million). Earnings per share attributable to AGRANA shareholders
were EUR 1.45 (Q1 of prior year: EUR 2.66).

Total assets eased slightly compared with 28 February 2015, from EUR
2.41 billion to EUR 2.33 billion, and the equity ratio rose from
49.6% to 52.5%. Net debt as of 31 May 2015 stood at EUR 410.3
million, which for seasonal reasons was up significantly (by EUR 80.0
million) from the 2014|15 year-end level. The gearing ratio therefore
rose to 33.5% as of the quarterly balance sheet date (28 February
2015: 27.7%).

Sugar segment

Q1 2015|16 Q1 2014|15
Revenue 147.8 185.1
Operating profit (EBIT) (1.9) 17.0
EBIT margin (1.3%) 9.2%

In the Sugar segment the trend of the previous two quarters
continued. Revenue in the first quarter of 2015|16 fell substantially
by 20.2% year-on-year, to EUR 147.8 million. The reasons were a
significant reduction in sales prices and also a decrease in
quantities sold into the sugar-using industry. The negative EBIT (EUR
-1.9 million) was likewise attributable to the significant drop in
sales prices compared with the prior year. Lower raw material costs
(particularly for raw sugar) were not able to compensate for the
revenue reduction.

Starch segment

Q1 2015|16 Q1 2014|15
Revenue 174.1 177.3
Operating profit (EBIT) 14.7 14.5
EBIT margin 8.4% 8.2%

The Starch segment's revenue in the first quarter was EUR 174.1
million, about 1.8% less than in the same quarter one year earlier.
This small downtick was driven mainly by lower selling prices for
products purchased for resale, which were almost fully made up for by
greater sales volumes of modified starches and higher prices for
bioethanol. At EUR 14.7 million, absolute EBIT was up slightly
year-on-year, and profitability (the EBIT margin) rose to 8.4%.

Fruit segment

Q1 2015|16 Q1 2014|15
Revenue 290.8 284.8
Operating profit (EBIT) 18.8 21.4
EBIT margin 6.5% 7.5%

Fruit segment revenue increased by 2.1% in the first quarter, to EUR
290.8 million. In the fruit preparations division, where sales volume
rose slightly from one year earlier, higher sales prices and currency
translation effects were the key drivers of revenue growth of about
10%. The revenue reduction of approximately 20% in the fruit juice
concentrate division resulted from lower sales quantities and prices.
EBIT of the Fruit segment as a whole was EUR 18.8 million, a decrease
of 12.2% from one year earlier. While the fruit preparations business
showed a moderate improvement in EBIT, a decline in apple juice
concentrate prices had a negative effect in the fruit juice
concentrate activities.

Outlook

In view of the persistent downward pressure on prices of sugar and
saccharification products, AGRANA maintains its forecast of a
significant decrease in EBIT for the full year 2015|16. AGRANA
continues to expect Group revenue to be steady for the 2015|16
financial year. The budgeted investment for the year, at
approximately EUR 93 million, is slightly above depreciation.

About AGRANA AGRANA converts agricultural raw materials into
high-quality foods and numerous industrial intermediate products.
About 8,700 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 and its Starch segment is a major European
manufacturer of specialty products, as well as 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 press release is also available on the AGRANA website at
www.agrana.com.

Further inquiry note:
AGRANA Beteiligungs-AG

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

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