Operating Profits at Agrana Surge 50 Percent, Helped by Higher Sugar Prices

08 Jul 2016 --- Austrian food processor Agrana has reported its operating profits were up nearly 50 percent on the year in the first three months of the year, helped by higher sugar prices. Revenues were also up 8.6 percent to €665.5 million ($736 million ) in the first quarter, helped by contributions across sugar, starch and fruit.

Operating profits were up 49.2 percent to €47m ($52 million) in the period.

Agrana CEO Johann Marihart said: "We are off to a good start in the new financial year, which reaffirms our positive view for the full year 2016|17. A gratifying aspect is that – in addition to the Starch segment and the fruit preparations business – the Sugar segment and the fruit juice concentrate division also contributed to this positive development." 

Sales in starch were up by three percent to €179.4m ($199m), helped by an increase in volume sales. Sales were strong across modified starches and in feedstuffs trading.

However, lower prices led to a revenue decrease for bioethanol.

Sales in sugar were up 21 percent year-on-year to €178.4 million ($197m), helped by higher sugar selling prices as a result of the tighter sugar supply, and by greater sales volumes.

Revenues across Agrana's fruit segment unit were up 6 percent to €307.7m ($341m).

In the fruit preparations division, a positive trend in sales volumes was offset by mildly reduced selling prices outside the EU.

Revenue in the fruit juice concentrate division increased significantly helped by a rise in sales prices. EBIT of €23.2 million ($25.7m) represented growth of 23.4 percent from one year earlier.

Both the fruit preparations activities and the fruit juice concentrate business delivered a significant improvement in earnings.

by John Reynolds