In This Article:
-
Revenue: EUR2.7 billion, a decrease of 8.1% year-over-year.
-
EBITDA: EUR138.1 million, down 44.7% from the previous year.
-
Operating Profit: EUR54.3 million, a decline of 67.1%.
-
EBIT: EUR51.1 million, a decrease of 65.8%.
-
Earnings Per Share: EUR0.18.
-
Fruit Segment Revenue: Increased by 3.8% to EUR1.22 billion.
-
Starch Segment Revenue: Decreased by 15.5% to EUR767 million.
-
Sugar Segment Revenue: Decreased by 16.7% to EUR717.4 million.
-
Free Cash Flow: Nearly EUR90 million for the first three quarters.
-
Net Debt: EUR612.2 million, with an expected improvement in the fourth quarter.
-
Gearing Ratio: 50.5%.
-
Profit Before Tax: EUR26.8 million.
-
Tax Rate: 45.9%.
-
Energy Costs: Significantly lower than the previous year but still double pre-2021 levels.
-
Outlook EBIT '24, '25: Expected between EUR55 million and EUR75 million, with a significant reduction compared to the previous year.
Release Date: January 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
The fruit segment delivered a solid performance despite the challenging economic environment.
-
Agrana Beteiligungs AG (WBO:AGR) has implemented a new corporate strategy to streamline operations and foster collaboration between business areas.
-
The company is targeting annual savings of EUR80 million to EUR100 million, expected to be fully effective by the financial year '27, '28.
-
A positive free cash flow of nearly EUR90 million was achieved in the first three quarters.
-
The fruit segment showed a significant increase in EBIT by 45.5%, reaching EUR72.9 million.
Negative Points
-
Overall business performance remains weak, with EBIT in the third quarter slightly negative.
-
Revenue decreased by 8.1% to EUR2.7 billion compared to the previous year.
-
Operating profit significantly declined by 67.1% to EUR54.3 million.
-
The sugar segment faces high stocks and declining selling prices, resulting in a negative EBIT of EUR50.2 million.
-
Energy costs remain high, doubling compared to pre-2021 levels, impacting profitability.
Q & A Highlights
Q: Could you explain the assumptions behind the wide range in your full-year operating profit guidance of EUR55 million to EUR75 million? Also, what are the main factors affecting the sugar segment's performance? A: Stephan Buettner, CFO: The range is influenced by the ongoing sugar production campaign, with potential changes in sugar beet quality affecting yields and operating results. Other factors include sales volumes and ethanol sales in the starch segment. The sugar segment faces higher production costs, expected to increase by EUR40 million, with a EUR15 million impact on this year's P&L. We lost EUR130 million to EUR140 million in sugar revenue due to price effects, which we couldn't offset with lower raw material costs.