AGRANA Reports Robust 2023/24 Results Amid Volatility

AGRANA reports solid 2023/24 financial year results with revenue up 4.1% to €3,786.9 million and operating profit increasing to €151.0 million. The company expects a challenging 2024/25 financial year with a decline in EBIT and revenue.

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Nitish Verma
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AGRANA Reports Robust 2023/24 Results Amid Volatility

AGRANA Reports Robust 2023/24 Results Amid Volatility

AGRANA Beteiligungs Aktiengesellschaft has reported solid performance for the 2023/24 financial year, achieving revenue of €3,786.9 million, a 4.1% increase from the previous year. The company posted strong financial results with an operating profit (EBIT) of €151.0 million, significantly above the €88.3 million figure from the prior year. Earnings per share rose to €1.04, up from €0.25 in 2022/23.

Why this matters: The robust results of AGRANA, a major player in the food industry, have significant implications for the global economy and trade. The company's performance can also influence the prices of staple food items, affecting consumers worldwide.

AGRANA CEO Stephan Büttner commented on the results, stating, "Despite a further volatile environment, we were able to significantly improve our performance. The fruit segment performed well operationally, while the starch segment was affected by reduced demand and price pressure. In the sugar segment, we achieved a better capacity utilization and higher sugar production volumes, but were impacted by increased competition from Ukraine."

The fruit segment saw revenue grow by 5.7% to €1,566.9 million, with an operating profit of €60.2 million, a turnaround from the €38.5 million loss in the previous year. However, the segment recorded an impairment charge of €18.7 million due to ongoing business challenges in Asia. The starch segment experienced an 11.2% decrease in revenue to €1,148.7 million, with operating profit falling to €50.4 million from €80.2 million, driven by reduced demand and mounting price pressure.

Despite a decline in sugar sales volume due to increased imports from Ukraine, the sugar segment saw improved capacity utilization and sugar production volume. Revenue in the segment rose by 24.3% to €1,071.3 million. Other key figures for AGRANA in 2023/24 include EBITDA of €291.1 million, up 5.0%, and an equity ratio of 43.2%, an improvement from 41.8% in the prior year.

Looking ahead, AGRANA expects a challenging business environment in the 2024/25 financial year, with a significant decline in EBIT compared to 2023/24. Revenue is anticipated to see a slight decline for the full year. The company plans an investment volume of around €120 million, focusing on emission reduction measures. The Management Board will propose a dividend of €0.90 per share for the 2023/24 financial year, in line with AGRANA's long-term dividend policy of continuity.

Key Takeaways

  • AGRANA's revenue increased 4.1% to €3,786.9 million in 2023/24.
  • Operating profit (EBIT) rose to €151.0 million, up from €88.3 million.
  • Earnings per share increased to €1.04, up from €0.25 in 2022/23.
  • Fruit segment revenue grew 5.7% to €1,566.9 million.
  • AGRANA expects a challenging 2024/25, with a decline in EBIT and revenue.