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AGRANA achieves record results in 2010|11 - Dividend to increase to € 2.40 per share

Revenue of AGRANA, the global sugar, starch and fruit group, grew by 8.9% in the 2010|11 financial year to € 2,165.9 million (prior year: € 1,989.2 million).

Datum: 13.05.2011

Revenue of AGRANA, the global sugar, starch and fruit group, grew by 8.9% in the 2010|11 financial year to € 2,165.9 million (prior year: € 1,989.2 million). The recent years’ focused investment in production capacity set the stage for the significantly higher sales volumes in all business segments. Operating profit before exceptional items was expanded in every segment, by 39.4% overall to € 128.1 million (prior year: € 91.9 million). A major challenge in the year completed was the pronounced volatility in world market prices for raw materials.

Net financial items (the balance of finance income and expense) amounted to a net expense of € 19.0 million (prior year: net income of € 0.5 million), attributable mainly to the net interest component. After a tax expense of € 22.4 million (representing an effective tax rate of 20.5%), the Group’s profit for the periodwas € 86.7 million (prior year: € 72.7 million). The profit for the period attributable to shareholders of AGRANA grew to € 84.5 million (prior year: € 72.2 million); earnings per share were thus € 5.95 (prior year: € 5.08).

AGRANA further improved its capital structure in 2010|11. Equity at the end of the financial year was € 970.7 million (prior year: € 904.7 million) and the equity ratio increased to 48.7% (prior year: 47.9%). The gearing ratio of net debt to equity improved further, to 39.4% (prior year: 41.6%).

AGRANA – IFRS results

 

Q4
2010|11

Q4
2009|10
FY
2010|11
FY
2009|10
Revenue€ 541.5 m€ 453.4 m€ 2,165.9 m€ 1,989.2 m
Operating profit before exceptional items (EBIT)€ 23.3 m€ 13.0 m€ 128.1 m€ 91.9 m
Operating margin before exceptional items4.3 %2,9 %5.9 %4,6 %
Profit before tax€ 24.6 m€ 13.4 m€ 109.1 m€ 87.4 m
Profit for the period€ 21.7 m€ 14.9 m€ 86.7 m€ 72.7 m
Earnings per share€ 1.52 € 1.04€ 5.95€ 5.08
Purchases of property, plant and equipment and intangibles1€ 27.9 m€ 22.9 m€ 55.9 m€ 48.4 m
Staff count (average)  8,2437,927

1 Ausgenommen Geschäfts- und Firmenwerte

AGRANA Chief Executive Officer Johann Marihart says: “In a year made challenging by the extremely volatile world market prices, AGRANA has delivered very attractive results. This demonstrates the appropriateness of our investments in the last several years and shows that we took the right strategic and organisational measures. Exploiting synergies between our business activities was and remains a key factor in our sustained success. The Management Board’s outlook for AGRANA is positive, and at the Annual General Meeting on 1 July we will therefore propose to shareholders a dividend increase from € 1.95 to € 2.40 per share.”

Sugar segment

 Q4
2010|11
Q4
2009|10 
 FY
2010|11
 FY
2009|10
Revenue€ 153.0 m€ 136.4 m€ 713.1 m€ 684.1 m
Operating profit before
exceptional items
€ 7.1 m(€ 4.0 m)€ 33.1 m€ 15.2
Operating margin before
exceptional items
4.6 %neg.4.6 %2.2 %

Revenue in the Sugar segment rose in 2010|11, by € 29.0 million or 4.2% to € 713.1 million (prior year: € 684.1 million). The Sugar segment earned an operating profit of € 33.1 million before exceptional items, significantly above the prior-year level of € 15.2 million. The key reason was the good sales volume situation in non-quota sugar and also in co-products.

Starch segment

 Q4
2010|11
Q4
2009|10
FY
2010|11
FY 
2009|10
Revenue€ 158.6 m€ 118.8 m€ 583.2 m€ 499.2 m
Operating profit before
exceptional items
€ 4.7 m€ 6.8 m€ 48.2 m€ 41.1 m
Operating margin before
exceptional items
3.0 %5.7 %8.3 %8.2 %

The Starch segment’s revenue growth of € 84.0 million or 16.8% in the 2010|11 financial year to € 583.2 million (prior year: € 499.2 million) was propelled most of all by higher sales quantities in every major group of core and co-products. Operating profit rose by € 7.1 million or 17.3% to € 48.2 million (prior year: € 41.1 million). Through sales price increases in the second half of 2010|11, the segment was largely able to offset the higher raw material prices that prevailed from late summer onwards. In bioethanol, AGRANA achieved both higher sales volumes and market prices for ethanol and co-products.

Fruit segment

 Q4
2010|11
Q4
2009|10
FY
2010|11
FY
2009|10
Revenue€ 229.9 m€ 198.2 m€ 869.6 m€ 805.9 m
Operating profit before
exceptional items
€ 11.3 m€ 10.3 m€ 46.7 m€ 35.7 m
Operating margin before
exceptional items
4.9 %5.2 %5.4 %4.4 %

Revenue in the Fruit segment rose by € 63.7 million or 7.9% in 2010|11, to € 869.6 million (prior year: € 805.9 million). The segment’s operating profit of € 46.7 million before exceptional items was up by € 11.0 million or 30.8% from the prior-year level. The operating margin in the Fruit segment widened to 5.4% (prior year: 4.4%). The reasons for this positive trend were the volume growth in fruit preparations and the strong volume sales in the concentrate business, later combined with a favourable market price rise for concentrates as a result of the limited supply of raw materials. Growth was strongest in Eastern Europe, Asia and North America. In fruit juice concentrates, revenue expanded, driven by significant price increases in the concentrate market and higher sales quantities.

Outlook

For the current 2011|12 financial year, after the record revenue in 2010|11, AGRANA expects further growth. The Group’s pre-exceptionals operating profit, which rose significantly last year, is also to be expanded further in 2011|12.

After three years of investment below the rate of depreciation, AGRANA plans to increase capital expenditure in 2011|12 to about € 100 million to support the Group’s long-term growth trajectory.

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