AGRANA (AGR) H2 24/25 earnings summary

Executive summary

• Revenue declined 7.2% year-over-year to €3,514.0 million, with EBIT dropping 73.2% to €40.5 million due to weak economic activity in Europe, especially in Austria and Germany, and significant price pressure in the Sugar and Starch segments.

• The Fruit segment delivered strong results, offsetting some weakness in Starch and Sugar, while the Sugar segment faced significant losses and higher costs.

• Major restructuring included closure of sugar production sites in Austria and Czech Republic, and a reduction in planted acreage and sugar output.

• The NEXT LEVEL strategy was launched, targeting €80–100 million in annual cost savings by 2027/28, with 10% of savings already achieved.

• Free cash flow doubled to €259.1 million, and net debt was reduced by 31.4% to €436.4 million, supporting a proposed dividend of €0.70 per share.

Financial highlights

• Revenue: €3,514.0 million (-7.2% year-over-year); EBIT: €40.5 million (-73.2%); EBITDA: €190.9 million (-34.4%).

• Free cash flow increased by 100.5% to €259.1 million; net debt reduced by €199.7 million to €436.4 million; gearing ratio improved to 35.5%.

• Equity ratio improved by 2.2 percentage points to 45.4%.

• Net loss attributable to shareholders: (€4.3 million), EPS: (€0.07) vs €1.04 prior year.

• Dividend proposal of €0.70 per share, down from €0.90, reflecting weaker performance but strong cash flow.

Outlook and guidance

• Group EBIT for 2025/26 expected to remain steady but under pressure, with continued losses anticipated in the Sugar segment.

• Revenue projected to decline slightly by 1–5%, mainly due to lower sugar prices and volumes.

• Segment outlook: slight revenue increase in Fruit, stable revenue and significant EBIT increase in Starch, significant revenue reduction but moderate EBIT improvement in Sugar.

• Q1 2025/26 EBIT expected to decline significantly versus prior year, mainly due to weak Sugar business and restructuring costs.

• Planned investments of approximately €120 million across segments, slightly above depreciation.