Sugar and Starch Drive Strong Growth for Agrana

Operating profit increased by 89.6% for the same period last year. The main contributions to this positive earnings trend came from the Sugar and Starch segments.

Jan 12 2012 --- With a very good third quarter for the Group, AGRANA’s international Sugar, Starch and Fruit activities kept up this financial year’s positive trend. Revenue in the first three quarters grew by 20.2% from the prior year’s comparative period, to €1,952.2 million.

The revenue growth in all three segments was driven by favorable market trends in Sugar and Starch and was achieved despite slightly lower sales volumes in the Fruit segment. Operating profit before exceptional items was € 198.7 million, an increase of 89.6% from the first three quarters of the prior year.

The main contributions to this positive earnings trend came from the Sugar and Starch segments. The optimization measures taken in the previous years had a beneficial impact on business activity, and the Group also seized the opportunities created by the rapidly changing market conditions.

AGRANA Chief Executive Officer Johann Marihart says: “In view of the volatile global environment, we are very happy with how our financial year has gone thus far. We have expanded our investment in all three business segments to ensure a strong basis for lasting growth.

“For the full financial year we are expecting significant growth in revenue and substantially higher operating profit before exceptional items than a year ago, driven by the Sugar and Starch segments. Earnings in the Fruit segment will come in significantly below last year’s because of the current continuing difficult economic setting.”

High quota sugar sales were achieved both with resellers and the sugar-using industry. Key factors behind the good results were the availability of non-quota sugar and timely sugar sourcing in the world market, vigorous marketing and the flexible use of opportunities arising from changing market conditions.

The operating profit improvement was also helped by the good 2011/12 beet campaign with high beet quality, an early campaign start and thus a significant year-on-year increase in production.

The growth in Starch segment revenue and earnings resulted primarily from higher selling prices in all major groups of core- and by-products, which more than offset the higher raw material prices. Especially AGRANA Stärke GmbH and the starch plants in Hungary and Romania generated very good earnings.