EANS-News: AGRANA Beteiligungs-AG raises Group forecast for full year

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Subtitle: Attractive business results in Starch segment

6-month report/Half year results 2015|16 (ended 31.08.2015)

- Group revenue of EUR 1,263.5 million (H1 prior year: EUR 1,285.2
million) marginally lower than in first half of 2014|15 for price
reasons

- Operating profit (EBIT) at EUR 68.7 million still significantly
below year- earlier level (H1 prior year: EUR 87.0 million), but
second quarter already up slightly year-on-year

- Outlook for full year 2015|16: steady revenue, with EBIT now seen
only moderately below prior year

In the first half of the 2015|16 financial year, AGRANA, the sugar,
starch and fruit products manufacturer, posted revenue of EUR 1,263.5
million (H1 prior year: EUR 1,285.2 million). The Group's revenue
thus eased mildly by 1.7% from one year earlier. Operating profit
(EBIT), at EUR 68.7 million (H1 prior year: EUR 87.0 million), was
down significantly as expected, with a decline of 21.0% from the
first six months of 2014|15 as a result of the sustained negative
price situation for sugar. While EBIT in the Starch segment improved
markedly compared to the year-earlier period, and, in the second
quarter, contributed to Group- level EBIT growth of 9.1%, revenue in
the Sugar segment remained down amid the lasting low sugar market
prices and led to the anticipated weaker EBIT result for Sugar. In
the Fruit segment, EBIT eased moderately as a result of poorer
earnings in fruit juice concentrates.

AGRANA Chief Executive Officer Johann Marihart says: "The current
adverse sugar price situation had a strong impact on our results for
the first half of the year. On the other hand, the present high
ethanol prices are boosting operating profit in the Starch segment
and thus for the Group as a whole. As a result of the improved
projected margin in the ethanol business, we were also able to raise
our Group EBIT forecast for the full financial year. Once more, our
strategy of diversification across the three pillars of Sugar, Starch
and Fruit has proved invaluable in cushioning the effects of earnings
fluctuations."

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

H1 2015|16 H1 2014|15
Revenue 1,263.5 1,285.2
EBITDA** 93.1 113.2
Operating profit before exceptional items*** 58.0 78.2
Share of results of equity-accounted joint ventures 12.0 12.9
Exceptional items (1.3) (4.1)
Operating profit (EBIT) 68.7 87.0
EBIT margin 5.4% 6.8%
Net financial items (11.2) (8.1)
Profit for the period 43.9 60.2
Investment**** 40.8 38.6

Q2 2015|16 Q2 2014|15
Revenue 650.8 638.0
EBITDA** 49.9 49.7
Operating profit before exceptional items*** 32.0 31.7
Share of results of equity-accounted joint ventures 6.3 6.5
Exceptional items (1.1) (4.1)
Operating profit (EBIT) 37.2 34.1
EBIT margin 5.2% 5.3%
Net financial items (9.5) (5.4)
Profit for the period 22.4 21.0
Investment**** 22.9 23.7

*All prior-year data have been restated under IAS 8 **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 the year amounted to a net
expense of EUR 11.2 million (H1 prior year: net expense of EUR 8.1
million); the year-on- year increase in expense resulted primarily
from net currency translation losses. After an income tax expense of
EUR 13.6 million, corresponding to a tax rate of about 23.7% (like
one year earlier), profit for the period was EUR 43.9 million (H1
prior year: EUR 60.2 million). Earnings per share attributable to
shareholders of AGRANA were EUR 3.08 (H1 prior year: EUR 4.03).

Net debt as of 31 August 2015 stood at EUR 373.0 million, up by EUR
42.7 million from the 2014|15 year-end level. The gearing ratio rose
accordingly to 31.8% as of the mid-year balance sheet date (28
February 2015: 27.7%). Total assets eased moderately compared with 28
February 2015, from EUR 2.41 billion to EUR 2.22 billion, and the
equity ratio rose from 49.6% to 52.9%.

Sugar segment
EUR million, except %

H1 2015|16 H1 2014|15
Revenue 345.0 378.1
Operating profit (EBIT) 6.4 28.1
EBIT margin 1.9% 7.4%

Q2 2015|16 Q2 2014|15
Revenue 197.2 193.0
Operating profit (EBIT) 8.4 11.1
EBIT margin 4.3% 5.8%

Sugar segment revenue in the first half of 2015|16 declined by 8.8%
year-on-year to EUR 345.0 million. Revenue from by-products retreated
slightly. Given the lasting negative market price situation, Sugar
EBIT as expected was down significantly to EUR 6.4 million, but it
was positive again in the second quarter after the first quarter?s
negative result.

Starch segment
EUR million, except %

H1 2015|16 H1 2014|15
Revenue 352.7 351.7
Operating profit (EBIT) 31.1 25.2
EBIT margin 8.8% 7.2%

Q2 2015|16 Q2 2014|15
Revenue 178.6 173.9
Operating profit (EBIT) 16.4 10.7
EBIT margin 9.2% 6.2%

The Starch segment's revenue in the first half of 2015|16 was EUR
352.7 million, somewhat higher than in the same period one year
earlier. The revenue growth came especially from the bioethanol
business, which benefited from higher selling prices. EBIT of EUR
31.1 million significantly surpassed the year- earlier result, by
23.4%. This operating profit growth was driven above all by the
improved sales prices for ethanol; at the same time, average raw
material costs for the Starch segment as a whole also eased slightly
year-on-year.

Fruit segment
EUR million, except %

H1 2015|16 H1 2014|15
Revenue 565.8 555.9
Operating profit (EBIT) 31.2 33.7
EBIT margin 5.5% 6.1%

Q2 2015|16 Q2 2014|15
Revenue 275.0 271.1
Operating profit (EBIT) 12.4 12.3
EBIT margin 4.5% 4.5%

Fruit segment revenue increased by 1.8% in the first half of 2015|16
to EUR 565.8 million. In the fruit preparations business the revenue
growth of approximately 10% resulted from higher sales volumes and
prices. In fruit juice concentrates, selling prices of apple juice
concentrate were down sharply and revenue thus fell by about 20%,
with the consequence of lower earnings. EBIT for the whole Fruit
segment in the first six months was EUR 31.2 million, or 7.4% less
than one year earlier.

Outlook AGRANA continues to expect Group revenue to remain steady in
the 2015|16 financial year. For operating profit (EBIT), the Group is
now projecting only a moderate instead of a significant decrease,
provided the ethanol price situation remains positive. "We should be
able to almost fully make up for the likely weak EBIT result in the
Sugar segment through year-on-year EBIT growth in the Starch and
Fruit segments. The improved outcome projected in our revised
full-year forecast will also be made possible by other factors, such
as lower campaign costs and energy savings," comments CEO Marihart.
The budgeted investment for the 2015|16 financial year, at
approximately EUR 93 million, will be slightly above depreciation.

About AGRANA AGRANA converts agricultural raw materials into
high-quality foods and numerous industrial intermediate products.
About 9.000 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 announcement is available in German and English 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