AGRANA delivers significant earnings increase in first three quarters of 2020/21
In the first three quarters of the 2020/21 financial year, AGRANA, the fruit, starch and sugar company, generated EBIT operating profit of € 84.3 million. AGRANA Chief Executive Officer Johann Marihart comments: “The key drivers of the earnings growth were good results in …
In the first three quarters of the 2020/21 financial year, AGRANA, the fruit, starch and sugar company, generated EBIT operating profit of € 84.3 million. AGRANA Chief Executive Officer Johann Marihart comments: “The key drivers of the earnings growth were good results in bioethanol – especially in the third quarter – and a profitability improvement in the Sugar segment thanks to higher sugar prices and volumes. Sugar EBIT nevertheless remained negative due mainly to idle-capacity costs associated with the incomplete utilisation of sugar factories, notably in Austria. In the Fruit segment, EBIT in the fruit preparations business rose significantly in the first three quarters from the year-earlier reporting period. The performance of the fruit juice concentrate business, on the other hand, was down considerably as a result of lower available volumes from the prior year’s apple crop.”
FRUIT segment
Fruit segment revenue in the first three quarters was € 891.7 million, closely in line with the year-earlier level. In fruit preparations, revenue and sales volumes remained steady. Revenue in the fruit juice concentrate activities saw a moderate increase from a year ago, thanks largely to higher prices for the product group of fruit juice concentrates, albeit on the back of higher apple prices. Segment EBIT in the first nine months was € 41.3 million, off 10.0% from one year earlier. While fruit preparations EBIT improved, the main reason for the deterioration at segment level lay in lower delivery volumes in the fruit juice concentrate business combined with reduced contribution margins for apple juice concentrate produced from the 2019 harvest. Likewise, margins are under pressure in berry juice concentrates and apple juice concentrate made from the 2020 crop.
SUGAR segment
The Sugar segment’s revenue in the first three quarters was € 452.8 million, up 18.2% from one year earlier. This reflected both higher sugar selling prices and increased sugar sales volumes, especially with resellers. Although EBIT in the first nine months was still negative at a deficit of € 15.5 million, it improved markedly from the year-ago loss of € 33.4 million thanks to a more benign sales price environment.