AUSTRIA: Agrana reports reduction in revenue on lower prices | Progresiv

Agrana, the global sugar, starch and fruit products manufacturer, posted reductions in revenue and EBIT in the opening quarter of the 2015|16 financial year, as a result of lower market prices. Compared to the year-earlier quarter, the Group's revenue declined by 5.3% in the first three months, to 612.7 million euros.

As expected, operating profit (EBIT), at 31.6 million euros, was down significantly, with a decline of 40.3% from the prior year's first quarter. While in the Sugar segment the significant erosion in sales prices detracted from revenue and led to a negative operating result, EBIT in the Starch segment improved somewhat. In the Fruit segment, EBIT eased year-on-year as expected, as a result of a modest dip in the profit trend in fruit juice concentrates.

Net financial items in the first quarter of 2015|16 amounted to a net expense of 1.7 million euros (Q1 of prior year: net expense of 2.7 million euros); the year-on-year improvement arose primarily from the net interest result. After an income tax expense of 8.3 million euros, corresponding to a tax rate of 27.8% (Q1 of prior year: 21.9%), profit for the period was 21.6 million euros (Q1 of prior year: 39.2 million euros).

In the Sugar segment the trend of the previous two quarters continued. Revenue in the first quarter of 2015|16 fell substantially by 20.2% year-on-year, to 147.8 million euros. The reasons were a significant reduction in sales prices and also a decrease in quantities sold into the sugar-using industry. The negative EBIT (–1.9 million euros) was likewise attributable to the significant drop in sales prices compared with the prior year. Lower raw material costs (particularly for raw sugar) were not able to compensate for the revenue reduction. (www.foodingredientsfirst.com)