AGRANA harvested record results in 2011|12; Dividend increase to € 3.60 per share
Dátum: 15.05.2012AGRANA harvested record results in 2011|12
Dividend increase to € 3.60 per share
- Strong revenue growth, driven by all three segments
- Underlying business continues to deliver sound growth
- Extraordinary expansion in Sugar and Starch operating profit thanks to favourable market conditions
- Investment and optimisation measures for sustained growth
- Outlook: moderate increase in revenue, exceptionally good 2011|12 earnings have set the bar high for 2012|13
AGRANA, the sugar, starch and fruit products manufacturer, grew revenue by 19% in the 2011|12 financial year to a historic high of € 2,577.6 million. Pre-exceptionals operating profit soared 80.7% to € 232.4 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.
Net financial items amounted to a net expense of € 24.7 million (prior year: net expense of € 19.0 million), reflecting mainly the fact that the higher financing requirement for the business-driven increase in working capital meant a deterioration in the net interest component. After a tax expense of € 50.6 million (corresponding to an effective tax rate of 24.5%), the Group’s profit for the period was € 155.7 million (prior year: € 87.1 million). The profit for the period attributable to AGRANA’s shareholders grew to € 152.4 million (prior year: € 84.9 million); earnings per share were thus € 10.73 (prior year: € 5.98).
AGRANA continued to possess a robust capital structure at the end of the 2011|12 financial year. As a result of a strong increase in total assets, the equity ratio decreased from 48.4% to 45.4% despite an improvement in equity. The gearing ratio of net debt to equity rose to 43.7% on higher financing requirements for working capital (prior year: 39.7%).
AGRANA – IFRS results
|
Q4 |
Q4 |
FY |
FY |
|
Revenue |
€ 625.4 m |
€ 541.5 m |
€ 2,577.6 m |
€ 2,165.9 m |
|
Operating profit before exceptional items |
€ 33.7 m |
€ 23.8 m |
€ 232.4 m |
€ 128.6 m |
|
Operating margin before exceptional items |
5.4 % |
4.4 % |
9.0 % |
5.9 % |
|
Profit before tax |
€ 39.6 m |
€ 25.2 m |
€ 206.3 m |
€ 109.7 m |
|
Profit for the period |
€ 26.0 m |
€ 22.1 m |
€ 155.7 m |
€ 87.1 m |
|
Earnings per share |
€ 1.83 |
€ 1.55 |
€ 10.73 |
€ 5.98 |
|
Purchases of property, plant and equipment and intangibles2 |
€ 34.4 m |
€ 27.9 m |
€ 97.1 m |
€ 55.9 m |
|
Staff count (average) |
|
7,982 |
8,243 |
1 Prior year has been restated to reflect a retrospective change in accounting policy concerning IAS 19 (Employee Benefits).
2 Excluding goodwill.
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.”
Sugar segment
|
Q4 |
Q4 |
FY 2011|12 |
FY |
Revenue |
€ 193.0 m |
€ 153.0 m |
€ 884.4 m |
€ 713.1 m |
Operating profit before exceptional items |
€ 18.0 m |
€ 7.8 m |
€ 112.3 m |
€ 33.8 m |
Operating margin before exceptional items |
9.3 % |
5.1 % |
12.7 % |
4.7 % |
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.
Starch segment
|
Q4 |
Q4 |
FY |
FY |
Revenue |
€ 176.8 m |
€ 158.6 m |
€ 764.3 m |
€ 583.2 m |
Operating profit before exceptional items |
€ 13.7 m |
€ 4.7 m |
€ 81.9 m |
€ 48.2 m |
Operating margin before exceptional items |
7.7 % |
3.0 % |
10.7 % |
8.3 % |
The segment revenue growth of 31.1% in 2011|12 to € 764.3 million (prior year: € 583.2 million) resulted largely from greater sales volumes in all major groups of core and by-products. The operating profit of € 81.9 million before exceptional items represented a marked rise from the prior-year result of € 48.2 million. The higher selling prices for all core products more than made up for the increase in commodity input prices. In bioethanol, both sales prices and volumes exceeded the year-earlier level.
Fruit segment
|
Q4 |
Q4 |
FY |
FY |
Revenue |
€ 255.5 m |
€ 229.9 m |
€ 928.9 m |
€ 869.6 m |
Operating profit before exceptional items |
€ 2.0 m |
€ 11.3 m |
€ 38.2 m |
€ 46.7 m |
Operating margin before exceptional items |
0.8 % |
4.9 % |
4.1 % |
5.4 % |
Revenue in the Fruit segment increased by 6.8% in the 2011|12 financial year to a new total of € 928.9 million (prior year: € 869.6 million). The operating profit of € 38.2 million before exceptional items did not reach the prior-year level of € 46.7 million. While the result in fruit juice concentrates was satisfactory, volume reductions and (owing to raw material costs) lower margins in fruit preparations led to the decrease in segment operating profit.
Outlook
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.
Continuing the trend reversal begun in 2011|12, capital expenditure in the current new financial year is to increase and will significantly exceed depreciation. Total investment will reach about € 140 million in 2012|13 to continue to buttress the Group’s lasting growth.
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