AGRANA (AGR) Q1 25/26 earnings summary

Executive summary

• Q1 2025/26 saw a significant EBIT decline to €5.7 million, mainly due to weak sugar business performance and restructuring costs in Austria and the Czech Republic.

• Extraordinary expenses of €18.3 million were booked for sugar site closures, with a social plan for affected employees.

• Strategic progress included the full acquisition of AUSTRIA JUICE, supporting integration and future dividend entitlement.

• Segment reporting was restructured to align with the NEXT LEVEL strategy, enhancing transparency and operational focus.

• AGRANA was again included in the VÖNIX Austrian Sustainability Index for its corporate sustainability efforts.

Financial highlights

• Revenue fell 6.8% year-over-year to €880.2 million, mainly due to lower sugar and ethanol prices.

• EBIT dropped 82.4% to €5.7 million, impacted by restructuring costs and weak sugar performance.

• Operating profit before exceptional items was €25.7 million, down from €30.0 million a year earlier.

• Free cash flow was €10.9 million, in line with the previous year.

• Net debt decreased by €9.9 million year-over-year to €426.5 million; equity ratio rose to 46.9%.

Outlook and guidance

• Group EBIT for FY 2025/26 expected to remain steady, with revenue slightly reduced.

• Food and Beverage Solutions segment forecasts steady EBIT and slightly higher revenue; Starch segment expects steady results; Sugar segment anticipates significant revenue reduction but moderate EBIT improvement.

• Ongoing market volatility and impacts from the war in Ukraine present forecast uncertainty, especially regarding Ukrainian agricultural imports.

• Q2 2025/26 EBIT is expected to decline significantly year-over-year.

• Up to €50 million in annual savings targeted from NEXT LEVEL strategy measures.