AGRANA (AGR) CMD 2025 summary

Business performance and financial outlook

• EBIT for Q1-3 2024/25 was significantly below the previous year, with a slightly negative Q3 result; group revenue decreased by 8.1% year-on-year.

• Fruit segment showed resilience, while the sugar segment faced severe challenges from lower sales prices and higher production costs.

• Group EBIT for 2024/25 is expected to drop sharply, with operating profit before exceptional items forecasted at €55–75 million; revenue is projected to decrease moderately.

• Ongoing geopolitical risks and market volatility, especially in raw materials and energy, continue to impact performance and forecast certainty.

Strategic transformation: NEXT LEVEL strategy and structural changes

• NEXT LEVEL strategy restructures the group into a strategic holding with two business areas: "Agricultural Commodities & Specialities" and "Food & Beverage Solutions".

• Over 325 measures defined, targeting €80–100 million in annual cost savings by 2027/28, with cumulative expense reduction of nearly €160 million by end of 2027/28.

• Initial transformation measures in 2024/25 exceeded expectations, delivering €8 million in impact versus the original €4–5 million.

• Streamlining includes administration (Horizon 1) and process optimisation in Sugar and Starch segments (Horizon 2).

• Transition to a streamlined, strategic "light" holding company with joint board responsibility and clear functional reporting lines.

Business area focus and innovation

• "Agricultural Commodities & Specialities" prioritizes cost efficiency from raw material sourcing to production, leveraging cost synergies.

• "Food & Beverage Solutions" emphasizes innovative customer services and development of new solutions, including aroma activities (AUSTRIA JUICE).

• Working capital optimisation pursued through new financing models, such as factoring.

• Financial ambitions include cost optimization, high-margin growth, and innovation excellence.

• Strategic goals for 2030+: EBITDA margin >10% and ROCE >10%, with a focus on value-added products and co-creative customer solutions.