AGRANA (AGR) H1 24/25 earnings summary

Executive summary

• Second quarter 2024/25 was significantly weaker than the previous year, with group EBIT and revenue both declining year-over-year due to challenging market conditions, especially in starch and sugar segments.

• Fruit segment delivered strong EBIT growth, while starch and sugar segments faced significant margin and price pressures, leading to sharp declines in segment EBIT.

• Floods in Central and Eastern Europe in September 2024 disrupted production at several sites, notably in Austria, but no employee injuries occurred and full recovery is expected soon.

• Strategy and cost reduction programs are ongoing, focusing on efficiency, customer focus, and synergies, especially in agricultural commodities and solutions businesses.

Financial highlights

• Revenue for H1 2024/25 was €1,861.7 million, down 5.0% year-over-year.

• EBIT fell 49.0% to €56.6 million; EBITDA declined 34.3% to €107.6 million.

• Earnings per share dropped to €0.35; profit for the period was €23.5 million.

• Net cash from operating activities rose to €118.3 million, supported by lower inventories and receivables.

• Equity ratio improved to 46.3%; gearing ratio stable at 50.9%.

Outlook and guidance

• Group EBIT for full year 2024/25 is expected to decline significantly; revenue projected to decrease moderately.

• Fruit segment EBIT forecast to improve significantly with slight revenue growth; starch and sugar segments anticipate significant EBIT and revenue reductions.

• Q3 EBIT expected to be very significantly below prior year, mainly due to sugar.

• Full-year EBIT guidance includes a possible flood impact of up to €3-5 million.

• Investment for 2024/25 expected at €120 million, moderately below prior year, with 12% allocated to emission reduction measures.