Agrana reports significant EBIT decrease in 2018/19
In the 2018/19 financial year, Agrana Beteiligungs-AG achieved consolidated revenue of € 2,443.0 million, a slight decrease from the prior year. Operating profit (EBIT), at € 66.6 million, decreased by 65.1% from one year earlier.
Prices for sugar, isoglucose and ethanol were low
The significant earnings decline was especially due to persistent extremely low sugar prices, but also to low isoglucose and ethanol prices in the Starch segment. In the Fruit segment, the company recorded stable revenue and an increase in EBIT, with the fruit juice concentrate business generating the earnings growth thanks to an improved situation in margins and sales volume.
“We expect renewed significantly better overall earnings”
The company´s Chief Executive Officer Johann Marihart says: “The past financial year, which was negatively impacted above all by losses in the Sugar segment and by volatile but low overall ethanol prices, certainly does not give us cause for satisfaction. However, for the new financial year now under way, we expect renewed significantly better overall earnings, driven particularly by EBIT growth in the Fruit segment. Amid the difficult situation in the sugar market, our strategy of diversification once again proves its worth, enabling us to balance out the effects of fluctuating business conditions across the different operating segments. Our optimism is also reflected in our investments in growth projects in the Fruit segment and specialisation projects in the Starch segment. The biggest project of the new financial year is the expansion of the wheat starch plant in Pischelsdorf, Austria; the enlarged facility is scheduled for commissioning at the end of 2019.”
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