EQS-News

AGRANA has strong operating performance in first three quarters - Seite 2

 

Results in each business segment

 

FRUIT segment

Fruit segment revenue in the first three quarters grew to € 1,094.9 million, a significant increase of 16.6%. On the fruit preparations side, revenue rose for price reasons, while the increase in fruit juice concentrate revenue was additionally driven by volume. Due to an impairment charge taken in the second quarter, the Fruit segment had an EBIT loss of € 51.6 million in the first three quarters, a very significant difference from the year-ago profit.  The impairment test for the Fruit cash-generating unit was triggered back at the half-year reporting date by the continuing war in Ukraine, by the upheaval in energy and commodity markets and particularly by rapidly rising capital costs.

In the fruit juice concentrate business, earnings rose very significantly thanks to improved contribution margins for apple juice concentrate from the 2021 and 2022 harvests. Better contribution margins from berry juice concentrates and natural aromas also contributed to the EBIT growth.

  

STARCH segment

Revenue in the Starch segment in the first three quarters expanded to € 987.8 million, a significant increase of 33.9%. With demand subdued compared to the previous year, the extreme increases in raw material and energy prices led to markedly higher manufacturing costs, which AGRANA was partly able to pass on in sales prices.  A major driver of the revenue growth in the first nine months was the climb in ethanol prices compared to the same period last year. The Starch segment’s EBIT of € 67.1 million was up significantly year-on-year, with the wheat gluten business performing very well.

This financial year’s volatility in ethanol markets is extreme. After quoting at over € 1,300 per cubic metre in the first half of 2022|23, ethanol prices have fallen sharply since the end of the summer and were only between € 700 and € 800 per cubic metre in November 2022.

 

SUGAR segment

The Sugar segment’s revenue in the first three quarters was € 659.8 million, up 33.9% from one year earlier. Both higher sugar selling prices and increased sugar sales volumes led to this growth. Sugar EBIT of € 34.7 million marked a pronounced improvement from the double-digit loss of the year-earlier period. This very positive trajectory was attributable to significantly improved margins thanks to the favourable sales price environment and disciplined cost management. Given the upward trend in sugar prices, AGRANA expects beet prices to be attractive to farmers in the next crop year as well.