Earnings Release • Jul 12, 2012
Earnings Release
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1 Debt-equity ratio (ratio of net debt to total equity)
15 MANAGEMENT BOARD'S RESPONSIBILITY STATEMENT
| Results | Q1 | Q1 |
|---|---|---|
| AGRANA Group | 2012 13 | 2011 12 |
| Revenue | € 774.6m | € 612.9m |
| EBITDA | € 86.8m | € 78.5m |
| Operating profi t before | ||
| exceptional items | € 70.9m | € 61.6m |
| Operating margin | 9.2% | 10.1% |
| Operating profi t after | ||
| exceptional items | € 70.9m | € 61.6m |
| Purchases of property, plant | ||
| and equipment and intangibles2 | € 22.7m | € 14.2m |
| Staff count3 | 8,483 | 8,210 |
Revenue of the AGRANA Group increased by € 161.7 million or 26.4% in the fi rst quarter of the 2012|13 fi nancial year (1 March to 31 May 2012) to € 774.6 million (Q1 2011|12: € 612.9 million). While revenue in the Starch segment was fl at (for price reasons), positive market developments and higher sales volumes ensured revenue growth in the Sugar and Fruit segments.
In the fi rst quarter of 2012|13, operating profi t before exceptional items was € 70.9 million, up € 9.3 million or 15.1% from the year-earlier quarter's € 61.6 million. The good earnings trend was driven by the Sugar and Starch segments. Favourable market conditions were prevalent for both of these business segments, which in the fi rst three months of 2012|13 continued the good performance of the full prior year. In the Fruit segment, although AGRANA's operating profi t was less than in the strong fi rst quarter
of fi nancial 2011|12, the margin situation improved sequentially compared to the fourth quarter. Net fi nancial items in the fi rst quarter of 2012|13 amounted to a net expense of € 9.7 million (Q1 2011|12: net expense of € 6.2 million). The year-on-year change was attributable to higher interest payments on increased borrowings and to a change in currency translation diff erences; unlike the currency translation gains in the year-earlier period, the quarter under review brought unrealised foreign exchange losses on Eastern Euro pean currencies. After an income tax expense of € 13.8 million, corresponding to a tax rate of 22.5% (Q1 2011|12: 22.2%), the AGRANA Group's profi t for the period was € 47.5 million (Q1 2011|12: € 43.1 million). Earnings per share attributable to AGRANA shareholders grew from € 2.93 to € 3.32.
In the fi rst quarter of 2012|13 a total of € 22.7 million was invested in property, plant and equipment and intangibles (Q1 2011|12: € 14.2 million). The Sugar segment's € 8.4 million share of this (Q1 2011|12: € 4.1 million) related mainly to the construction of the two low-temperature dryers at the Leopoldsdorf and Tulln sites in Austria; their commissioning is scheduled for the beginning of the 2012|13 campaign. In Hrušovany in the Czech Republic, work is underway on the modernisation of the boiler house and on a new gas connection; in Kaposvár, Hungary, planning began for a new 60,000 tonne capacity sugar silo. With the installation of the one-kilogram packaging machine completed in Buzău, Romania, work continues on the conveyors and the modifi cation of the packaging building. In Brčko in Bosnia-Herzegovina, planning for the packaging centre is well advanced and that for the erection of a 25,000 tonne capacity sugar silo is complete.
AGRANA BETEILIGUNGS-AG Q1 2012 | 13
03
1 Excluding goodwill
2 Average number of employees in the period (head count)
In the Starch segment, AGRANA invested € 8.7 million (Q1 2011|12: € 2.2 million), especially for the construction of the wheat starch plant begun in the prior year at the facility in Pischelsdorf, Austria, and the implementation of the biomass boiler and expansion of corn processing capacity in Szabadegyháza, Hungary.
Investment in the Fruit segment amounted to approximately € 5.6 million (Q1 2011|12: € 7.8 million). The construction activities for the plant relocation and expansion in China are in full swing. In Serpuchov, Russia, the completion of the building that will expand the facility is expected for the end of July 2012.
The fi rst quarter's operating cash fl ow before change in working capital increased by 13.9% year-on-year to € 71.9 million (Q1 2011|12: € 63.1 million), in step with the rise in operating profi tability. With an overall increase of € 50.9 million in working capital (relatively similar to the increase recorded a year ago), net cash from operating activities in the fi rst quarter of 2012|13 amounted to € 20.4 million (Q1 2011|12: € 10.4 million). Net cash used in investing activities was € 23.2 million (Q1 2011|12: net cash used of € 9.8 million) on higher outfl ows for investment in property, plant and equipment and intangible assets. After a minimal net increase in borrowings, net cash from fi nancing activities of € 0.1 million was recorded (Q1 2011|12: net cash used of € 11.1 million).
With total assets down seasonally by 3.3% from 29 February 2012, the equity ratio improved from 45.4% to 48.7%.
Despite an increase in trade receivables, current assets contracted as a result primarily of the seasonal reduction in inventories. Non-current liabilities rose on higher longterm borrowings: In the fi rst quarter of 2012|13, AGRANA for the fi rst time placed a promissory note loan (in German: Schuld scheindarlehen, a type of loan with some bond-like characteristics), in the amount of € 110 million with terms of fi ve, seven and ten years. Current liabilities eased as current borrowings were repaid and as a result of the payments to beet growers and payment of the production levy.
Net debt at 31 May 2012 stood at € 475.8 million, up slightly by € 6.6 million from the 2011|12 fi nancial year-end level of € 469.2 million. The gearing ratio of 42.8% at the
end of the fi nancial quarter represented a further small improvement from the 29 February 2012 level of 43.7%.
| Share data | Q1 |
|---|---|
| 2012 13 | |
| High (25 May 2012) | € 89.00 |
| Low (23 Mar 2012) | € 80.00 |
| Closing price (31 May 2012) | € 85.11 |
| Closing book value per share (31 May 2012) | € 75.87 |
| Closing market capitalisation (31 May 2012) | € 1,208.7m |
AGRANA started the 2012|13 fi nancial year at a share price of € 84.99. On an average trading volume of about 1,200 shares per day (based on double counting, as published by the Vienna Stock Exchange), in a volatile environment, AGRANA's share price reached € 85.11 at the quarterly balance sheet date. The last several months were again characterised by negative sentiment in fi nancial markets – driven by the sovereign debt crisis – and this was also felt in the 14.95% decline of the Austrian blue-chip equity index, the ATX, over the reporting period. AGRANA's shares delivered a steady performance, marking an intra-period high of € 89 and later closing the quarter on a small gain of 0.14%.
The share price performance can be followed in the investor relations section of the AGRANA homepage at www.agrana.com. The market capitalisation at 31 May 2012 was € 1,208.7 million, with an unchanged 14,202,040 shares outstanding.
The 25th Annual General Meeting of AGRANA Beteiligungs-AG on 2 July 2012 approved the payment of a dividend of € 3.60 per share for the 2011|12 fi nancial year (an increase of 50% from the prior year's € 2.40 per share). The AGM also re-elected or elected the following persons to the Supervisory Board: Christian Konrad (Chairman of the Supervisory Board), Wolfgang Heer (First Vice-Chairman), Erwin Hameseder (Second Vice-Chairman), Jochen Fenner, Hans-Jörg Gebhard, Ernst Karpfi nger, Thomas Kirchberg and Josef Pröll.
In the fi rst quarter of 2012|13, AGRANA remained in regular contact with investors, fi nancial journalists and analysts and met with investors at events such as road shows in Antwerp, Brussels, London and Paris.
World sugar market
In its second, updated estimate of March 2012 for world sugar supply and demand in the current 2011|12 sugar marketing year, analytics fi rm F. O. Licht predicts an increase in world sugar stocks. While consumption is expected to rise to 164.9 million tonnes (2010|11: 160.4 million tonnes), production is to expand to 176.9 million tonnes (2010|11: 165.4 million tonnes), leading to a projected increase in global sugar inventories by the end of the marketing year to a new total of 70.5 million tonnes (2010|11: 62.8 million tonnes).
According to reports by UNICA, the Brazilian sugar industry association, rainfall in Brazil hampered the start of the 2012|13 harvest season in the main growing areas.
For the 2011|12 sugar marketing year, total sugar production in India is expected at 26 million tonnes. India's domestic requirement is given as approximately 22 million tonnes.
In AGRANA's new fi nancial year, world market quotations rose to highs for the quarterly reporting period of USD 675.00 per tonne for white sugar and USD 577.60 for raw sugar, in the middle of March. Towards the end of the fi rst quarter, world market prices reached their lows for the period at USD 548.20 per tonne for white sugar and USD 426.80 for raw sugar.
In the 2011|12 sugar marketing year the European Commission approved the sale of non-quota sugar into the EU food market (through a reclassifi cation as quota sugar). The total reclassifi ed amount available in December 2011 was 400,000 tonnes, on which a surplus levy of € 85 per tonne was payable. A further reclassifi cation of 250,000 tonnes, subject to a surplus levy of € 211 per tonne, was approved by the Commission in May 2012.
In addition to this measure, standing invitations were issued to tender for imports of sugar at reduced tariff s. In December 2011 and January, May and June 2012, the European Commission approved the tariff -reduced import of a total of about 400,000 tonnes of sugar.
As a result of the good sugar production within the EU, the Commission released export quotas for European out-ofquota sugar. A total of 1.35 million tonnes can be exported in the 2011|12 sugar marketing year; this corresponds to the export limit set by the World Trade Organisation (WTO). For the 2012|13 sugar marketing year, the European
Commission in April 2012 already set the preliminary export volume at 650,000 tonnes, but this can potentially be increased up to the maximum export limit.
The European Commission estimates quota sugar stocks of 2.7 million tonnes (2010|11: 2.0 million tonnes) at the end of the sugar marketing year 2011|12. For out-of-quota sugar an increase in stocks to 0.8 million tonnes (2010|11: 0.2 million tonnes) is expected.
| Sugar segment | Q1 | Q1 |
|---|---|---|
| 2012 13 | 2011 12 | |
| Revenue | € 306.8m | € 182.0m |
| EBITDA | € 37.2m | € 24.1m |
| Operating profi t before | ||
| exceptional items | € 34.6m | € 21.6m |
| Operating margin | 11.3% | 11.9% |
| Purchases of property, plant | ||
| and equipment and intangibles1 | € 8.4m | € 4.1m |
The Sugar segment had a successful start to the 2012|13 fi nancial year, extending the previous months' favourable performance in sales volumes, revenue and earnings.
Revenue was pushed up from € 182.0 million to € 306.8 million in the fi rst quarter of 2012|13. Relative to the prior year's fi rst quarter, volume gains were achieved in almost all areas. Sales to the sugar-using industry and to resellers were especially strong.
The overall higher selling prices outweighed higher raw material costs to yield a pre-exceptionals operating profi t of € 34.6 million (Q1 2011|12: € 21.6 million). Contributing to this robust earnings trend were not just the sugar prices but good co-product revenues and the increase in sugar volumes sold.
The acreage planted to sugar beet for the AGRANA Group was increased by about 14,000 hectares for the 2012|13 sugar marketing year, to more than 104,000 hectares. This expansion was spread across all fi ve countries in which beet is grown for AGRANA. In Austria about 900 hectares are dedicated to organic beet production. Across all growing regions, over 7,000 hectares of beet fi elds had to be turned under as a result of frost or drought; most of this area was then replanted to beet. In view of the weather and growing con ditions now prevailing, good beet yields are expected in all countries.
World grain production in the 2012|13 marketing year is estimated by the International Grains Council at 1.87 billion tonnes (2011|12: 1.84 billion tonnes), approximately equalling the expected level of consumption. Global wheat production is forecast at 671 million tonnes (2011|12: 695 million tonnes), less than the expected consumption of 681 million tonnes; global corn (maize) production, at 913 million tonnes (2011|12: 866 million tonnes), is predicted to exceed consumption of 902 million tonnes.
The 2012 wheat harvest in the EU is projected by Stratégie Grains at 124 million tonnes (2011|12: 129 million tonnes). For corn, analysts are expecting an EU crop of 66 million tonnes, steady at the prior-year level. Wheat consumption within the EU is forecast at 116 million tonnes (2011|12: 121 million tonnes) and corn consumption at 73 million tonnes (2011|12: 69 million tonnes). Commodity exchange prices are stable at a high absolute level, with quotations in mid-June around € 190 per tonne for corn and € 205 for wheat from the coming crop (for November delivery, on Euronext LIFFE).
| Starch segment | Q1 | Q1 |
|---|---|---|
| 2012 13 | 2011 12 | |
| Revenue | € 192.4m | € 193.3m |
| EBITDA | € 30.0m | € 29.0m |
| Operating profi t before | ||
| exceptional items | € 24.0m | € 22.5m |
| Operating margin | 12.5% | 11.6% |
| Purchases of property, plant | ||
| and equipment and intangibles1 | € 8.7m | € 2.2m |
Starch segment revenue in the fi rst quarter of 2012|13 was € 192.4 million, approximately in line with the comparative prior-year quarter's € 193.3 million. Higher selling prices for saccharifi cation products and greater sales volumes of saccharifi cation, starch and co-products were juxtaposed with lower selling prices for bioethanol, starch and co-pro ducts and slightly reduced bioethanol volumes. On balance, the quantities sold in the reporting period marginally exceeded those of the year-earlier quarter.
The segment operating profi t of € 24.0 million before exceptional items was up from the prior-year result of € 22.5 million. This translated to an increase in operating margin from 11.6% to 12.5%.
For potato starch for the 2012 campaign year, contracts were concluded by about 1,300 farmers to grow 10,000 tonnes of organic starch potatoes and 253,000 tonnes of regular starch potatoes. The contracts for regular food potatoes and organic food potatoes, at 11,500 and 6,900 tonnes, respectively, are somewhat above the prioryear level.
The corn requirement for the starch factories is secured in all three countries (Austria, Hungary and Romania) until the beginning of the wet corn campaign. For the 2012 production of specialty corn in Austria (organic corn, waxy corn, guaranteed non-GMO corn, and organic waxy corn), contracts were signed for approximately 65,000 tonnes.
The grain and corn purchases for the bioethanol plant in Pischelsdorf, Austria, are largely assured until up to the new crop. Including the ethanol grain grower contracts for the coming harvest, about 70% of the raw material sourcing for the 2012|13 fi nancial year is already in place.
The strained economic environment in Europe is causing a signifi cant drop in consumption especially in non-staple product categories such as fruit yoghurts. Markets outside Europe, however, are showing rising momentum; particularly in North America, Latin America and the Asia-Pacifi c region, sales volumes are growing.
The trend in European consumption of beverages with a high fruit juice content is relatively subdued, not least as a result of the raw-materials-driven rise in fruit juice concentrate prices over the last two years.
| Fruit segment | Q1 | Q1 |
|---|---|---|
| 2012 13 | 2011 12 | |
| Revenue | € 275.4m | € 237.5m |
| EBITDA | € 20.0m | € 25.3m |
| Operating profi t before | ||
| exceptional items | € 12.3m | € 17.6m |
| Operating margin | 4.5% | 7.4% |
| Purchases of property, plant | ||
| and equipment and intangibles1 | € 5.6m | € 7.8m |
Fruit segment revenue increased by 16.0% in the fi rst quarter of 2012|13 to € 275.4 million. In most fruit preparations markets except for Central and Western Europe, the year-earlier sales quantities were matched or even surpassed. Particularly Eastern Europe and the USA saw a positive volume trend. Selling prices were elevated compared to the prior year, refl ecting the rise in raw material costs. Sales volumes of fruit juice concentrates grew signifi cantly.
The operating profi t of € 12.3 million before exceptional items was about 30% below the high prior-year level of €17.6 million. The segment's operating margin thus fell to 4.5% (Q1 2011|12: 7.4%). This was attributable primarily to temporary shifts in the fruit juice concentrates business. The eff ects of these shifts should, however, be recouped in the further course of the year. Compared with the fourth quarter of 2011|12, a slight recovery in the whole segment is already visible.
In the USA the operation of the subsidiary Flavors from Florida, Inc., based in Bartow, Florida, was discontinued and its assets sold. The transaction was conducted without any eff ect on profi t or loss.
Weather conditions for the early strawberry harvests in Mexico, Morocco, Egypt and Spain were very good, resulting in suffi cient raw materials for procurement. Generally, demand for raw materials this year should be somewhat moderated by last year's higher fruit prices. For strawberries in Poland and cherries in Serbia and North America, considerable crop losses are already a likelihood in view of the weather during the growing season to date. The forecasts for pomes and stone fruits in Europe and the USA are predominantly good (pomes include apples and pears, among other fruits). The availability of the tropical fruits used by AGRANA was also satisfactory and the price trend conformed to expectations.
In the fruit juice concentrates business, the weather this year to date currently points to an average apple crop in Europe. This assumption is based on frosts in early April, dry growing conditions in the winter months and cool temperatures during fl owering. In the regions outside Europe (China, Turkey and Ukraine), quite favourable weather conditions are being reported and crop forecasts are normal.
AGRANA uses an integrated system for the early identifi cation and monitoring of risks that are relevant to the Group.
There are at present no known risks to the AGRANA Group's ability to continue in operational existence, and no future risks of this nature are currently discernible.
A detailed description of the Group's business risks is provided on pages 74 to 77 of the annual report 2011|12.
Against the backdrop of the current crisis of confi dence in capital markets, the general risk of customer/counterparty default has risen, as has the level of currency risk. To control these risks, the risk management system is continually refi ned.
The joint venture agreement between AGRANA Juice Holding GmbH, Gleisdorf, Austria, and Ybbstaler Fruit Austria GmbH, Kröllendorf, Austria, took eff ect on its closing date of 1 June 2012. The new joint venture, YBBSTALER AGRANA JUICE GmbH, has its registered offi ce in Kröllendorf and operates 14 production sites in Austria, Denmark, Hungary, Poland, Romania, Ukraine and China. With annual revenue of about € 350 million, the company is fully consolidated in the accounts of the AGRANA Group since the second quarter of 2012|13. Further details are provided in the notes to the fi nancial statements.
No other signifi cant events occurred after the balance sheet date of 31 May 2012 that had a material eff ect on AGRANA's fi nancial position, results of operations or cash fl ows.
For the full year 2012|13, AGRANA expects Group revenue to increase on overall slight volume growth and high prices. Given the likely substantial volatility in raw material and selling prices in the coming quarters, AGRANA reiterates the existing guidance for the full year, which calls for earnings slightly below the exceptionally good result of the prior year.
In the Sugar segment, the second quarter of 2012|13 (June to August) is expected to bring similarly attractive earnings as the fi rst three months. For the full year, amid the high uncertainty over the further trajectory from autumn onwards, AGRANA believes that revenue will continue to rise but that earnings will be somewhat less than last year's.
In the Starch segment, the market's emerging patterns and the intensifi ed competition in this business augur an ebbing in the coming months of the positive trends observed in the fi rst quarter of 2012|13. Stable market demand for starch products is predicted both in the nonfood sector and for isoglucose, bioethanol and by-products, albeit coupled with a declining trend in selling prices. AGRANA expects that, from the third quarter of this fi nancial year, the Starch segment will not be able to fully match the year-earlier operating profi t before exceptional items.
The Fruit segment's operating profi t before exceptional items is expected to resume a rising trend for the 2012|13 fi nancial year as a whole. In the fruit preparations division, AGRANA foresees a persistently challenging market environment, similar to 2011|12. While the overall market in Europe continues to lose vigour, the non-European markets are growing again and it is here that numerous growthdriving projects and new products enabled the fruit preparations activities to achieve signifi cant gains in sales volumes and market shares. In the fruit juice concentrate business, the expectation is for further revenue growth, driven by small increases in sales volumes amid continuing volatile selling prices especially for apple juice concentrates. Concentrate operating profi t before exceptional items should stabilise at the level reached in 2011|12. The merger with Ybbstaler Fruit Austria GmbH will generate additional revenue of about € 90 million for the AGRANA Group this year (representing nine months of results); no eff ect on the current operating margin of the Juice division is expected.
In the 2012|13 fi nancial year, total investment in all three segments will expand to about € 135 million, thus providing solid support for the Group's long-term growth trajectory.
FOR THE FIRST THREE MONTHS ENDED 31 MAY 2012 (UNAUDITED)
| CONSOLIDATED INCOME STATEMENT | 2012 13 | 2011 12 |
|---|---|---|
| for the fi rst three months (1 March – 31 May) | ¤000 | |
| Revenue | 774,634 | 612,906 |
| Changes in inventories of fi nished and unfi nished goods | (166,800) | (64,325) |
| Own work capitalised | 1,133 | 796 |
| Other operating income | 6,087 | 5,730 |
| Cost of materials | (378,429) | (355,888) |
| Staff costs | (60,771) | (55,898) |
| Depreciation, amortisation and impairment losses | (15,874) | (16,857) |
| Other operating expenses | (89,035) | (64,837) |
| Operating profi t after exceptional items | 70,945 | 61,627 |
| Finance income | 2,708 | 2,199 |
| Finance expense | (12,364) | (8,431) |
| Net fi nancial items | (9,656) | (6,232) |
| Profi t before tax | 61,289 | 55,395 |
| Income tax expense | (13,813) | (12,317) |
| Profi t for the period | 47,476 | 43,078 |
| Attributable to shareholders of the parent | 47,140 | 41,602 |
| Attributable to non-controlling interests | 336 | 1,476 |
| Earnings per share under IFRS (basic and diluted) | € 3.32 | € 2.93 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 2012 13 | 2011 12 |
|---|---|---|
| for the fi rst three months (1 March – 31 May) | ¤000 | ¤000 |
| Profi t for the period | 47,476 | 43,078 |
| Other comprehensive (expense)/income | ||
| – Currency translation diff erences | (9,150) | (384) |
| – Available-for-sale fi nancial assets under IAS 39 | (60) | 48 |
| – Cash fl ow hedges under IAS 39 | 1,026 | 187 |
| – Change in actuarial gains and losses on | ||
| defi ned benefi t pension obligations and similar liabilities under IAS 19 | (9) | 0 |
| – Tax eff ect of IAS 19 and IAS 39 | (437) | (64) |
| Other comprehensive (expense) for the period | (8,630) | (213) |
| Total comprehensive income for the period | 38,846 | 42,865 |
| Attributable to shareholders of the parent | 38,205 | 41,279 |
| Attributable to non-controlling interests | 641 | 1,586 |
09
| CONSOLIDATED BALANCE SHEET | 31 May | 29 February | |
|---|---|---|---|
| 2012 | 2012 | ||
| €000 | €000 | ||
| ASSETS | |||
| A. | Non-current assets | ||
| Intangible assets | 247,043 | 248,383 | |
| Property, plant and equipment | 599,727 | 595,924 | |
| Securities | 104,876 | 104,909 | |
| Investments in non-consolidated subsidiaries and outside companies, and loan receivables | 7,265 | 7,265 | |
| Receivables and other assets | 6,448 | 6,558 | |
| Deferred tax assets | 29,510 | 29,764 | |
| 994,869 | 992,803 | ||
| B. | Current assets | ||
| Inventories | 593,485 | 768,569 | |
| Trade receivables and other assets | 591,069 | 492,720 | |
| Current tax assets | 9,885 | 8,173 | |
| Securities | 147 | 1,352 | |
| Cash and cash equivalents | 95,311 | 98,504 | |
| Total assets | 1,289,897 2,284,766 |
1,369,318 2,362,121 |
|
| EQUITY AND LIABILITIES | |||
| A. | Equity | ||
| Share capital | 103,210 | 103,210 | |
| Share premium and other capital reserves | 411,362 | 411,362 | |
| Retained earnings | 562,978 | 524,900 | |
| Equity attributable to shareholders of the parent | 1,077,550 | 1,039,472 | |
| Non-controlling interests | 34,226 | 33,516 | |
| 1,111,776 | 1,072,988 | ||
| B. | Non-current liabilities | ||
| Retirement and termination benefi t obligations | 52,788 | 52,674 | |
| Other provisions | 12,458 | 12,397 | |
| Borrowings | 434,322 | 332,090 | |
| Other payables | 2,031 | 2,013 | |
| Deferred tax liabilities | 18,480 | 17,253 | |
| C. | Current liabilities | 520,079 | 416,427 |
| Other provisions | 25,617 | 26,777 | |
| Borrowings | 241,856 | 341,885 | |
| Trade and other payables | 344,254 | 469,465 | |
| Current tax liabilities | 41,184 | 34,579 |
652,911 872,706
Total equity and liabilities 2,284,766 2,362,121
10
| CONDENSED CONSOLIDATED CASH FLOW STATEMENT | 2012 13 | 2011 12 |
|---|---|---|
| for the fi rst three months (1 March – 31 May) | ¤000 | ¤000 |
| Operating cash fl ow before change in working capital | 71,873 | 63,101 |
| Gains on disposal of non-current assets | (576) | (185) |
| Change in working capital | (50,939) | (52,534) |
| Net cash from operating activitie | 20,358 | 10,382 |
| Net cash (used in) investing activities | (23,231) | (9,802) |
| Net cash from/(used in) fi nancing activities | 105 | (11,087) |
| Net decrease in cash and cash equivalents | (2,768) | (10,507) |
| Eff ect of movements in foreign exchange rates on cash and cash equivalents | (425) | (446) |
| Cash and cash equivalents at beginning of period | 98,504 | 70,427 |
| Cash and cash equivalents at end of period | 95,311 | 59,474 |
| CONDENSED CONSOLIDATED | Equity | Non- | Total |
|---|---|---|---|
| STATEMENT OF CHANGES IN EQUITY | attributable to | controlling | |
| for the fi rst three months (1 March – 31 May) | shareholders | interests | |
| of the parent | |||
| ¤000 | ¤000 | ¤000 | |
| 2012 13 | |||
| At 1 March 2012 | 1,039,472 | 33,516 | 1,072,988 |
| Fair value movements under IAS 39 | (359) | 886 | 527 |
| Change in actuarial gains and losses on | |||
| defi ned benefi t pension obligations and similar liabilities | (7) | 0 | (7) |
| Currency translation loss | (8,569) | (581) | (9,150) |
| Other comprehensive (expense)/income for the period | (8,935) | 305 | (8,630) |
| Profi t for the period | 47,140 | 336 | 47,476 |
| Total comprehensive income for the period | 38,205 | 641 | 38,846 |
| Other changes | (127) | 69 | (58) |
| At 31 May 2012 | 1,077,550 | 34,226 | 1,111,776 |
| At 1 March 2011 | 942,137 | 28,558 | 970,695 |
|---|---|---|---|
| Fair value movements under IAS 39 | 173 | (2) | 171 |
| Currency translation loss | (496) | 112 | (384) |
| Other comprehensive (expense)/income for the period | (323) | 110 | (213) |
| Profi t for the period | 41,602 | 1,476 | 43,078 |
| Total comprehensive income for the period | 41,279 | 1,586 | 42,865 |
| Other changes | (207) | 512 | 305 |
| At 31 May 2011 | 983,209 | 30,656 | 1,013,865 |
| SEGMENT REPORTING | 2012 13 | 2011 12 | 2012 13 | 2011 12 | |
|---|---|---|---|---|---|
| for the fi rst three months | ¤000 | ¤000 | ¤000 | ¤000 | |
| (1 March – 31 May) | |||||
| Total revenue | Operating profi t | ||||
| Sugar | 329,568 | 199,825 | Sugar | 34,584 | 21,596 |
| Starch | 194,718 | 195,808 | Starch | 24,028 | 22,481 |
| Fruit | 275,850 | 238,295 | Fruit | 12,333 | 17,550 |
| Group | 800,136 | 633,928 | Group | 70,945 | 61,627 |
| Exceptional items | 0 | 0 | |||
| Operating profi t | |||||
| after exceptional items | 70,945 | 61,627 | |||
| Inter-segment revenue | Investment | ||||
| Sugar | (22,722) | (17,788) | Sugar | 8,366 | 4,145 |
| Starch | (2,343) | (2,467) | Starch | 8,748 | 2,209 |
| Fruit | (437) | (767) | Fruit | 5,577 | 7,843 |
| Group | (25,502) | (21,022) | Group | 22,691 | 14,197 |
| Revenue | Staff count | ||||
| Sugar | 306,846 | 182,037 | Sugar | 2,084 | 2,022 |
| Starch | 192,375 | 193,341 | Starch | 920 | 879 |
| Fruit | 275,413 | 237,528 | Fruit | 5,479 | 5,309 |
| Group | 774,634 | 612,906 | Group | 8,483 | 8,210 |
| 2012 13 | 2011 12 | |
|---|---|---|
| €000 | €000 | |
| Operating profit | ||
| Sugar | 34,584 | 21,596 |
| Starch | 24,028 | 22,481 |
| Fruit | 12,333 | 17,550 |
| Group | 70,945 | 61,627 |
| Exceptional items | $\mathbf{0}$ | 0 |
| Operating profit | ||
| after exceptional items | 70,945 | 61,627 |
| Investment | ||
| Sugar | 8,366 | 4,145 |
| Starch | 8,748 | 2,209 |
| Fruit | 5,577 | 7,843 |
| Group | 22,691 | 14,197 |
| Staff count | ||
| Sugar | 2,084 | 2,022 |
| Starch | 920 | 879 |
| Fruit | 5,479 | 5,309 |
| $C$ roun | 8483 | 8710 |
The interim report of the AGRANA Group for the three months ended 31 May 2012 was prepared in accordance with the rules for interim fi nancial reporting under IAS 34, in compliance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and their interpretation by the International Financial Reporting Interpretations Committee (IFRIC). The interim consolidated fi nancial statements at and for the period ended 31 May 2012 were not audited or reviewed. These interim fi nancial statements were released by the Management Board of AGRANA Beteiligungs-AG on 11 July 2012 for publication.
The annual report 2011|12 of the AGRANA Group is available on the Internet at www.agrana.com for online viewing or downloading.
In the preparation of these interim accounts, the IFRS and interpretations which became eff ective in the 2012|13 fi nancial year were applied. This did not have an impact on the presentation of the Group's fi nancial statements or on its fi nancial position, results of operations or cash fl ows. Except for these newly eff ective IFRS and interpretations, the same accounting methods were applied as in the preparation of the annual consolidated fi nancial statements for the year ended 29 February 2012 (the 2011|12 fi nancial year). The notes to those annual consolidated fi nancial statements therefore apply mutatis mutandis to these interim accounts. Corporate income taxes were determined on the basis of country-specifi c income tax rates, taking into account the tax planning for the full fi nancial year.
In the fi rst quarter of 2012|13 there were no changes in the list of entities included in the consolidated fi nancial statements.
Most of the Group's sugar production falls into the three months from October to December. Depreciation and impairment of plant and equipment used in the campaign are therefore incurred largely in the fi nancial third quarter. The material costs, staff costs and other operating expenses incurred before the sugar campaign in preparation for production are recognised intra-year under the respective type of expense and capitalised within inventories as unfi nished goods.
Operating profi t after exceptional items in the fi rst quarter of 2012|13 was € 70.9 million (Q1 2011|12: € 61.6 million). This profi t improvement was driven especially by the Sugar segment.
Net fi nancial items amounted to a net expense of € 9.7 million (Q1 2011|12: net expense of € 6.2 million) and resulted mainly from the net interest expense and foreign exchange eff ects.
After taxes, Group profi t for the period was € 47.5 million (Q1 2011|12: € 43.1 million).
From the beginning of March to the end of May 2012, cash and cash equivalents decreased by € 2.8 million to € 95.3 million.
Operating cash fl ow before change in working capital grew by € 8.8 million from the prior-year comparative period, to € 71.9 million (Q1 2011|12: € 63.1 million). The foremost driver of this movement was profi t for the period, which improved by € 4.4 million to € 47.5 million (Q1 2011|12: € 43.1 million). The decrease of € 50.9 million in working capital (Q1 2011|12: decrease of € 52.5 million) was attributable primarily to a greater inventory reduction and
13 SCOPE OF CONSOLIDATION ultimately resulted in net cash from operating activities of € 20.4 million (Q1 2011|12: € 10.4 million).
Net cash used in investing activities, at € 23.2 million (Q1 2011|12: net cash used of € 9.8 million), refl ected the higher purchases, during the fi rst quarter of 2012|13, of property, plant and equipment in the Sugar segment (especially in Austria, Romania, the Czech Republic and Hungary) and in the Starch segment (notably in Austria).
The increase of € 102.2 million in non-current borrowings included the promissory note loan (in German: Schuldscheindarlehen, a type of loan with some bond-like characteristics) of € 110 million placed in April 2012. The reduction of current borrowings by € 102.0 million led to net cash from fi nancing activities of € 0.1 million (Q1 2011|12: net cash used in fi nancing activities of € 11.1 million).
The contraction of € 77.4 million in total assets since 29 February 2012 to a new total of € 2,284.8 million was (like one year earlier) driven mainly by inventory reduction in the Sugar and Fruit segments, which outweighed the eff ect of an increase in trade receivables.
On the liabilities side, the reason for the decrease in the balance sheet total lay in lower trade payables. With total equity of € 1,111.8 million (29 February 2012: € 1,073.0 million), the equity ratio at the end of May was 48.7% (29 February 2012: 45.4%).
In the fi rst three months of the fi nancial year the AGRANA Group had an average of 8,483 employees (Q1 2011|12: 8,210). An increase of about 170 positions in the Fruit segment was attributable mainly to the higher requirement for seasonal labour in Ukraine.
There were no material changes in related party relationships since the year-end balance sheet date of 29 February 2012. Transactions with related parties as defi ned in IAS 24 are conducted on arm's length terms. Details of individual related party relationships are provided in the AGRANA annual report for the year ended 29 February 2012.
The joint venture agreement between AGRANA Juice Holding GmbH, Gleisdorf, Austria, and Ybbstaler Fruit Austria GmbH, Kröllendorf, Austria, took eff ect on its closing date of 1 June 2012. This joining of forces is to raise synergies, strengthen international marketing capabilities and create further opportunities for growth. The parent of the joint venture is the newly founded YBBSTALER AGRANA JUICE GmbH (based in Kröllendorf), which is 50.01% owned by AGRANA International Verwaltungs- und Asset-Management GmbH, Vienna, and 49.99% owned by RWA Raiff eisen Ware Austria, Vienna.
Since the beginning of the second quarter of 2012|13, the new holding company YBBSTALER AGRANA JUICE GmbH is fully consolidated in the accounts of the AGRANA Group. YBBSTALER AGRANA JUICE GmbH holds 100% of the shares of the pre-existing AGRANA Juice companies and will continue to fully consolidate these in its fi nancial statements. In addition, the two production companies Ybbstaler Fruit Austria GmbH, Kröllendorf, and Ybbstaler Fruit Polska sp. z oo, Chełm, Poland, are fully consolidated in the AGRANA Group from the beginning of the second quarter. Ybbstaler Fruit Austria GmbH, Kröllendorf, is (directly or indirectly) wholly owned by YBBSTALER AGRANA JUICE GmbH, Kröllendorf, and in turn directly holds 99% of Ybbs taler Fruit Polska sp. z oo, Chełm.
No other signifi cant events occurred after the balance sheet date of 31 May 2012 that had a material eff ect on AGRANA's fi nancial position, results of operations or cash fl ows.
We confi rm that, to the best of our knowledge:
█ the condensed consolidated interim fi nancial statements, which have been prepared in accordance with the applicable accounting standards, give a true and fair view of the Group's fi nancial position, results of operations and cash fl ows; and
█ the Group's management report for the fi rst three months gives a true and fair view of the fi nancial position, results of operations and cash fl ows of the Group in relation to (1) the important events in the fi rst quarter of the fi nancial year and their eff ects on the condensed consolidated interim fi nancial statements, (2) the principal risks and uncertainties for the remaining nine months of the fi nancial year, and (3) the reportable signifi cant transactions with related parties.
Vienna, 11 July 2012
Johann Marihart Fritz Gattermayer
Walter Grausam Thomas Kölbl Member of the Management Board Member of the Management Board
Chief Executive Offi cer Member of the Management Board
This interim report contains forward-looking statements, which are based on assumptions and estimates made by the Manage ment Board of AGRANA Beteiligungs-AG. Although these assumptions, plans and projections represent the Management Board's current intentions and best knowledge, a large number of internal and external factors may cause actual future developments and results to diff er materially from these assumptions and estimates. Some examples of such factors are, without limitation: negotiations concerning world trade agreements; changes in the overall economic environment, especially in macroeconomic variables such as exchange rates, infl ation and interest rates; EU sugar policy; consumer behaviour; and public policy related to food and energy.
AGRANA Beteiligungs-AG does not guarantee in any way that the actual future developments and actual future results achieved will match the assumptions and estimates expressed or made in this interim report, and does not accept any liability in the event that assumptions and estimates prove to be incorrect.
As a result of the standard round-half-up convention used in rounding individual amounts and percentages, this report may contain minor, immaterial rounding errors.
AGRANA Beteiligungs-AG Donau-City-Strasse 9 1220 Vienna, Austria www.agrana.com
Corporate Communications/Investor Relations: Hannes Haider Phone: +43-1-211 37-12905 Fax: +43-1-211 37-12045 E-mail: [email protected]
Corporate Communications/Public Relations: Christine Göller Phone: +43-1-211 37-12084 Fax: +43-1-211 37-12045 E-mail: [email protected]
For the AGRANA online annual report 2011|12, visit http://ir.agrana.com
This English translation of the AGRANA interim report is solely for readers' convenience. Only the German-language report is defi nitive.
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