Agrana Achieves Company Best Revenue for 2011/12

Pre-exceptionals operating profit soared 80.7% to €232.4 million ($298.8 million). The revenue growth in all three segments reflected favourable market trends in the sugar, starch and fruit businesses. The exceptionally powerful operating profit growth was driven by the sugar and starch segments.

15 May 2012 --- Agrana, the sugar, starch and fruit products manufacturer, grew revenue by 19% in the 2011/12 financial year to a company best of €2,577.6 million ($3,315.5).

Pre-exceptionals operating profit soared 80.7% to €232.4 million ($298.8 million). The revenue growth in all three segments reflected favourable market trends in the sugar, starch and fruit businesses. The exceptionally powerful operating profit growth was driven by the sugar and starch segments.

Agrana Chief Executive Officer Johann Marihart says: “Agrana has achieved highly attractive results, thanks primarily to the previous years’ optimisation measures and to focused investment in a benign market setting. We anticipated the volatile market movements well and were thus able to respond to them rapidly. Given the greatly improved earnings per share, to maintain Agrana’s consistent dividend policy the Management Board will propose to the Annual General Meeting on 2 July to increase the dividend from € 2.40 to € 3.60 per share.”

Revenue in the Sugar segment grew by 24.0% in the 2011/12 financial year, to €884.4 million (prior year: €713.1 million). The segment’s operating profit of €112.3 million before exceptional items was much higher than the previous year’s result of €33.8 million. The key contributing factors were the quantities of non-quota sugar available, the timely sourcing of raw sugar in the world market, vigorous marketing, and agility in reacting to changing market conditions.

After the exceptionally good results of 2011/12, earnings in 2012/13 are predicted to come in slightly below last year’s. Agrana believes it is also well-positioned for the new financial year and expects solid earnings in all business segments.

Agrana is making it a high priority to realise lasting cost savings and thus achieve a sustained, elevated level of earnings, through ongoing optimisation of purchasing strategies and cost management as well as focused improvements in energy consumption.

Currently Agrana expects a further moderate increase in Group revenue in 2012/13 on overall slight volume growth and higher average prices than last year. In terms of operating profit, however, it will be difficult to surpass 2011/12.