Quarterly Report • Jan 12, 2017
Quarterly Report
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on the first three quarters of 2016|17
1 Ratio of net debt to total equity.
2 Average number of full-time equivalents in the reporting period.
The AGRANA Group kept up the positive trend of its current 2016|17 financial year, with the results for the first nine months showing continued significant growth in operating profit (EBIT), which rose by about 27% year-on-year to € 137.7 million. In the first three quarters we thus already surpassed the operating profit of the full prior 2015|16 financial year. We are also pleased to say that all three segments contributed to the earnings improvement.
In the Sugar segment, as expected, beet processing volume and quality are high. By the end of January 2017, in a campaign lasting approximately 140 days, our nine sugar factories will have processed about 7 million tonnes of beet (prior year: 5.4 million tonnes) into more than 1 million tonnes of sugar. On the sales side there was a further, if moderate, price gain in the European Union for the new 2016|17 sugar marketing year thanks to largely eliminated sugar surpluses and sustained high world market prices.
In the Starch segment an overall reduction in raw material costs, due in part to good 2016 grain harvests both in Austria and Central and Eastern Europe, was beneficial for profit margins. The volatile ethanol prices remained a significant driver for Starch segment results in the third financial quarter.
In the Fruit segment, rising sales prices of apple juice concentrates and higher sales volumes of fruit preparations ensured an improved revenue trend.
The expansion of the corn starch factory in Aschach, Austria – our investment priority for this financial year – is progressing as planned. The commissioning of the addition will begin in spring 2017. Besides growing organically, AGRANA is also making acquisitions: In the Fruit segment the takeover of Argentinean fruit preparations maker Main Process S.A. represents a further step to strengthen our position in Latin America. The broad product range of this manufacturer both for the dairy and non-dairy sector is an ideal fit with our diversified product portfolio.
For the full 2016|17 financial year we continue to expect a moderate increase in Group revenue and a significant improvement in EBIT.
On behalf of the whole Management Board, I would like to extend a sincere thank-you to our employees for their commitment as well as to our partners and shareholders for their support and trust in the past calendar year.
Sincerely
Johann Marihart Chief Executive Officer
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| AGRANA Group €m, except % and per-share data |
Q1-Q3 2016 17 |
Q1-Q3 2015 16 |
|---|---|---|
| Revenue | 1,967.5 | 1,908.0 |
| EBITDA1 | 183.9 | 154.1 |
| Operating profit before exceptional items and results of equity-accounted joint ventures |
121.6 | 90.8 |
| Share of results of equity-accounted joint ventures |
23.7 | 19.7 |
| Exceptional items | (7.6) | (1.7) |
| Operating profit [EBIT]2 | 137.7 | 108.8 |
| EBIT margin | 7.0% | 5.7% |
| Net financial items | (13.3) | (16.3) |
| Income tax expense | (29.2) | (21.6) |
| Profit for the period | 95.2 | 70.8 |
| Earnings per share | € 6.29 | € 4.97 |
In the first nine months of 2016|17 (ended 30 November 2016), revenue of the AGRANA Group was € 1,967.5 million, up 3.1% from the same period one year earlier, with the revenue growth being most pronounced in the Fruit segment.
Operating profit (EBIT) grew to € 137.7 million in the first three quarters of 2016|17, a marked rise of 26.6% from the prior year. EBIT in the Starch segment grew to € 58.0 million. In the Sugar segment, higher spot sales prices, which outweighed negative one-time effects in Romania, led to EBIT of € 23.1 million, a substantial improvement from the year-earlier result of € 10.4 million. EBIT in the Fruit segment rose significantly to € 56.6 million (Q1-Q3 prior
| AGRANA Group €m, except % and per-share data |
Q3 2016 17 |
Q3 2015 16 |
|---|---|---|
| Revenue | 647.2 | 644.5 |
| EBITDA1 | 69.7 | 61.0 |
| Operating profit before exceptional items and results of equity-accounted joint ventures |
43.3 | 32.8 |
| Share of results of equity-accounted joint ventures |
8.7 | 7.7 |
| Exceptional items | (4.7) | (0.4) |
| Operating profit [EBIT]2 | 47.3 | 40.1 |
| EBIT margin | 7.3% | 6.2% |
| Net financial items | (3.0) | (5.1) |
| Income tax expense | (11.7) | (8.0) |
| Profit for the period | 32.6 | 26.9 |
| Earnings per share | € 2.08 | € 1.89 |
year: € 45.5 million), thanks especially to a recovery in the fruit juice concentrate business. Net financial items in the first three quarters of 2016|17 amounted to a net expense of € 13.3 million (Q1-Q3 prior year: net expense of € 16.3 million); this improvement, coming despite an impairment charge on a current finance receivable in Ukraine in the Fruit segment, was attributable to more favourable currency translation effects. After an income tax expense of € 29.2 million, corresponding to a tax rate of approximately 23.5% (Q1-Q3 prior year: 23.4%), profit for the period was € 95.2 million (Q1-Q3 prior year: € 70.8 million). Earnings per share attributable to AGRANA shareholders increased to € 6.29 (Q1-Q3 prior year: € 4.97).
1 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
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In the first three quarters of 2016|17, AGRANA invested a total of € 69.6 million, or € 9.2 million less than in the year-earlier period. Capital expenditure by segment was as follows:
| Investment1 €m |
Q1-Q3 2016 17 | Q1-Q3 2015 16 |
|---|---|---|
| Sugar | 17.8 | 39.2 |
| Starch | 36.2 | 14.9 |
| Fruit | 15.6 | 24.7 |
| Group | 69.6 | 78.8 |
The most important investment projects underway in the AGRANA Group were as follows:
Additionally in the first three quarters of 2016|17, € 8.9 million (Q1-Q3 prior year: € 12.8 million) was invested in the equity-accounted joint ventures (the HUNGRANA and STUDEN groups; investment in these entities is stated at 100% of the total).
Operating cash flow before changes in working capital rose to € 186.8 million (Q1-Q3 prior year: € 160.1 million) in the first three quarters of 2016|17 as a result of the higher profit for the period. With a smaller increase of € 7.9 million in working capital (Q1-Q3 prior year: increase of € 106.8 million) that was due primarily to a lesser increase in inventories and a greater increase in trade payables than in the year-earlier period, and with reduced outflows for interest and taxes, net cash from operating activities in the first three quarters of 2016|17 was € 153.1 million (Q1-Q3 prior year: € 12.6 million). Net cash used in investing activities was off moderately at € 72.4 million (Q1-Q3 prior year: net cash use of € 78.7 million) as a result of somewhat lower payments for purchases of property, plant and equipment and intangibles. The higher net cash outflow from financing activities of € 101.8 million (Q1-Q3 prior year: net cash outflow of € 59.0 million) reflected a higher dividend payment than in the year-ago period and a greater reduction of borrowings.
Total assets increased moderately compared with the 29 February 2016 year-end, to € 2.36 billion from € 2.24 billion, and the equity ratio eased slightly to 52.5% (29 February 2016: 53.5%).
Non-current assets rose only minimally on balance. Current assets were up moderately, with increases in inventories and in trade receivables and other assets. On the opposite side of the balance sheet, non-current liabilities fell markedly, due primarily to the repayment of borrowings. Current liabilities increased significantly, with the rise in borrowings and in trade and other payables paralleling the seasonal, campaign-related business trajectory.
Net debt at 30 November 2016 was € 382.0 million, or € 23.8 million less than the 2015|16 year-end level. The gearing ratio thus decreased to 30.8% as of the quarterly balance sheet date (29 February 2016: 33.8%).
1 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.
2 The prior-year data have been restated. Further information is provided on page 16.
| Share data | Q1-Q3 2016 17 |
|---|---|
| High (17 November 2016) | € 111.00 |
| Low (3 March 2016) | € 78.80 |
| Closing price (30 November 2016) | € 109.10 |
| Closing book value per share | € 83.12 |
| Closing market capitalisation | € 1,549.4m |
AGRANA started the 2016|17 financial year at a share price of € 80.50 and closed at € 109.10 on the last trading day of November 2016. This represented a substantial price gain of 35.5% for the financial year to date, on an average trading volume of just under 2,000 shares1 per day (Q1-Q3 prior year: about 1,300 shares). The Austrian blue-chip index, the ATX, rose by approximately 17% over the same period.
AGRANA's share price performance can be followed in the investor relations section of the Group's website at www.agrana.com. The market capitalisation at the end of November 2016 was € 1,549.4 million, with an unchanged 14,202,040 shares outstanding.
In the third quarter of 2016|17 AGRANA remained in regular and active contact with investors, financial journalists and analysts. Among other events, a Capital Markets Day for institutional investors was held in Vienna and Aschach, Austria, and the company offered a tour of the plant in Tulln, Austria, for retail shareholders.
| Sugar segment | Q1-Q3 | Q1-Q3 |
|---|---|---|
| €m, except % | 2016 17 | 2015 16 |
| Revenue | 532.5 | 540.5 |
| EBITDA3 | 44.4 | 24.9 |
| Operating profit before | ||
| exceptional items and results of | 27.3 | 9.0 |
| equity-accounted joint ventures | ||
| Share of results of | ||
| equity-accounted joint ventures | 3.4 | 1.4 |
| Exceptional items | (7.6) | 0.0 |
| Operating profit [EBIT]2 | 23.1 | 10.4 |
| EBIT margin | 4.3% | 1.9% |
| Sugar segment €m, except % |
Q3 2016 17 |
Q3 2015 16 |
|---|---|---|
| Revenue | 180.5 | 195.5 |
| EBITDA3 | 18.3 | 12.8 |
| Operating profit before exceptional items and results of equity-accounted joint ventures |
8.5 | 3.0 |
| Share of results of equity-accounted joint ventures |
1.0 | 1.0 |
| Exceptional items | (4.7) | 0.0 |
| Operating profit [EBIT]2 | 4.8 | 4.0 |
| EBIT margin | 2.7% | 2.0% |
The Sugar segment's revenue in the first three quarters of 2016|17, at € 532.5 million, was a little lower than one year earlier. While increased sugar selling prices had a positive effect, sugar sales quantities were lower (partic-
3 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
1 Trading volume based on double counting, as published by the Vienna Stock Exchange.
2 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.
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ularly with resellers and in non-quota sugar sold into the chemical industry) as a result of the relatively short 2015|16 campaign. Revenue from by-products remained steady and that from other products (INSTANTINA products, seed, services, etc.) was pushed up.
The higher EBIT of € 23.1 million in the first nine months of 2016|17 (Q1-Q3 prior year: € 10.4 million) was attributable primarily to a significant year-on-year increase in spot sales prices.
For the end of the 2016|17 sugar marketing year (SMY, October 2016 to September 2017) the analytics firm F.O. Licht in its third estimate of the world sugar balance dated 15 December 2016 is forecasting a continuing significant deficit of 7.2 million tonnes in the global supply/demand balance (end of SMY 2015|16: deficit of 10.6 million tonnes). A key reason is that global consumption is expected to keep growing and significantly exceed production. Following a period of six consecutive years of growth in global sugar stocks, this is predicted to be the second sugar marketing year in a row with a declin-ing year-end balance.
Prices in the world sugar market had recovered strongly since September 2015, thanks largely to this world market deficit. Especially since April 2016 the market showed a vigorous upward price trend, reaching its year-to-date peak of US\$ 524.9 per tonne of raw sugar in September and of US\$ 612.0 per tonne of white sugar in October, followed by a downward correction in quotations. This retrenchment was attributable mostly to a very strong US dollar, particularly against the Brazilian real, and to a change in the behaviour of institutional investment funds. At the balance sheet date of 30 November 2016, raw sugar quoted at US\$ 436.7 per tonne and the white sugar quotation was US\$ 526.4 per tonne.
The current forecasts for the sugar beet crop in Europe predict a steady level of utilisation of the EU sugar quota in SMY 2016|17. Especially in the Central and Southeastern European region, yields per hectare are good and the sugar content of the crop is higher than
last year. The first tranche, or 675,000 tonnes, of the export allowance of European non-quota sugar was released by the European Commission at the beginning of October 2016. As in the previous sugar marketing year, sugar imports are low, as a consequence of the high world market prices and relatively low EU prices. This is also reflected in the Commission's current forecast of declining closing stocks for the end of SMY 2016|17.
After the quota expiration on 30 September 2017 there will continue to be a sugar price reporting system, a master agreement between the sugar industry and beet producers, private storage, and scope for measures against market disruptions. With the end of the quota system, the minimum beet prices and the WTO export restrictions will also be abolished. The tariff protection of the EU sugar market will remain in place unchanged.
After prolonged and intensive negotiations, the decision by the Council of the European Union in October 2016 means that the Comprehensive Economic and Trade Agreement (CETA) with Canada can now be provisionally applied. It also includes the agreement on an origin or import quota for 75,000 tonnes of sugar products with high sugar content from Canada, which can be produced using 100% non-originating sugar.
The first negotiating round since 2012 for free trade agreements of the EU with the Mercosur countries (Argentina, Brazil, Uruguay, Paraguay and Venezuela) was resumed in October 2016.
The sales volume with resellers was below expectations in this financial year to date. This is explained partly by frost-induced lower fruit crop production, which resulted in less demand for sugar for fruit preserves. Declining quota sugar stocks are expected for SMY 2016|17. With the risen world market prices, selling prices have increased to make the necessary imports possible. The growth of the business with sugar specialties and organic products continues.
The area contracted by AGRANA with its growers for sugar beet production in the 2016 crop year, at about 94,000 hectares, was in line with the prior year. In Austria and Romania about 1,500 hectares were dedicated to the production of organic sugar beet. Overall, the beet harvest was very good and the crop had a medium sugar content on average. With a beet crop of approximately 7 million tonnes, a sugar production volume of more than 1 million tonnes is currently expected. The sugar factories will wind up their campaigns towards the end of January 2017 after about 140 days of processing.
The terms of sugar beet production and delivery for the time after the quota expiration have been negotiated with the various grower associations since summer 2016. For its beet purchasing, AGRANA seeks a variable beet price formula that takes into account the sugar sales price and the sugar content of the beet. As well, the Group aims to contract for sufficient raw material to permit the full utilization of all AGRANA sugar plants.
In June 2016, to enter into a strategic partnership with the owners of the Serbian company Sunoko d.o.o., Novi Sad, Serbia, one of the largest beet sugar producers in the Balkans region, AGRANA signed a term sheet with the intent of acquiring a majority stake and later initiated the process of approval by the competition authorities.
| Starch segment €m, except % |
Q1-Q3 2016 17 |
Q1-Q3 2015 16 |
|---|---|---|
| Revenue | 551.9 | 544.0 |
| EBITDA2 | 53.9 | 51.7 |
| Operating profit before | ||
| exceptional items and results of | 37.7 | 34.6 |
| equity-accounted joint ventures | ||
| Share of results of | ||
| equity-accounted joint ventures | 20.3 | 18.3 |
| Operating profit [EBIT]1 | 58.0 | 52.9 |
| EBIT margin | 10.5% | 9.7% |
| Starch segment €m, except % |
Q3 2016 17 |
Q3 2015 16 |
|---|---|---|
| Revenue | 188.8 | 191.3 |
| EBITDA2 | 23.7 | 20.7 |
| Operating profit before | ||
| exceptional items and results of | 18.3 | 15.1 |
| equity-accounted joint ventures | ||
| Share of results of | ||
| equity-accounted joint ventures | 7.7 | 6.7 |
| Operating profit [EBIT]1 | 26.0 | 21.8 |
| EBIT margin | 13.8% | 11.4% |
Revenue in the first three quarters of 2016|17, at € 551.9 million, was slightly higher than one year earlier. Through productivity increases, higher quantities were produced and sold than in the year-ago period. At the overall segment level, the revenue decline in bioethanol resulting from significantly fallen ethanol quotations was more than made up for.
With EBIT of € 58.0 million, the good comparative prior-period result of € 52.9 million was surpassed by 9.6%; the EBIT profit margin for the segment rose to 10.5% from 9.7% in the same period one year earlier. Key factors driving the earnings improvement were lower raw material costs for corn and reduced energy costs.
The food starch market was stable in terms of sales quantities, and prices for native and modified starches moved sideways.
1 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.
2 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
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Concerning starch saccharification products in general and isoglucose in particular, there is high competitive pressure in advance of the liberalisation of the sugar market in October 2017. The upward trend witnessed in sugar prices is therefore only partly reflected in the contracts for starch saccharification products.
The paper and corrugated board sector is characterised by good demand. This positive development is driven by the increase in production volumes and (due partly to the weaker euro) the rise in export volumes of paper and packaging materials.
The bioethanol business, after a low in early September, is recently benefiting from a close correspondence between supply and demand in the EU and an associated slight rally in prices. On balance, volatility should be expected to remain high as a result of the numerous factors influencing bioethanol quotations (supply and demand, US dollar/euro relations, imports, etc.).
In protein by-products there is sustained strong demand for potato protein and vital wheat gluten. Fish feed and pet food are the main markets generating positive impetus for this demand. Medium-protein feeds (Actiprot© and corn gluten feed) on the other hand are closely coupled to the grain and corn markets. The situation in the meat and dairy industry is still strained despite recent price increases, which also has direct impacts on demand from the compound feed sector.
World grain production in the 2016|17 grain marketing year (July to June) is estimated by the International Grains Council in its forecast of 24 November 2016 at 2.08 billion tonnes, exceeding the prior year by about 80 million tonnes and outpacing expected consumption by around 20 million tonnes. Wheat production is forecast at 749 million tonnes (prior year: 737 million tonnes; 2016|17 consumption: 736 million tonnes) and the predicted output of corn is 1,042 million tonnes (prior year: 971 million tonnes; estimated 2016|17 consumption: 1,026 million tonnes). Total grain stocks will increase by approximately 20 million tonnes to 504 million tonnes.
Grain production in the European Union is estimated by Strategie Grains in its forecast of 17 November 2016 at about 295 million tonnes (prior year: 309 million tonnes). Of this total, the soft wheat harvest accounts for about 136 million tonnes, which is less than the 2015 crop of 151 million tonnes. The 2016 corn harvest in the EU is expected to reach about 60 million tonnes, up 5% from last year. The quotations on the NYSE Euronext Liffe commodity derivatives exchange in Paris have moved sideways since the beginning of July and, on 30 November 2013, were around € 165 per tonne for corn and € 162 per tonne for wheat (year earlier: € 165 and € 177 per tonne, respectively).
On a planting area of about 6,600 hectares that was up 8% from the prior year, the starch potato harvest in Austria in the 2016|17 financial year amounted to approximately 236,000 tonnes (prior year: 161,000 tonnes). The campaign is expected to conclude in the middle of January 2017. Fulfilment of starch potato grower contracts will be about 94%, a large increase from the prior year's figure of 67%.
The volume of freshly harvested wet corn received at the Aschach facility in Austria will be about 120,000 tonnes as a result of the good corn harvest (prior year: 93,000 tonnes). In a campaign running from the beginning of September to the middle of December, the facility took delivery of approximately 95,000 tonnes of yellow corn and 25,000 tonnes of specialty corn (waxy corn, organic corn, organic waxy corn and certified non-GMO corn). Production subsequently switched back to the use of dry corn. For the full financial year, corn processing volume at this site is expected to be in line with the prior year's at about 400,000 tonnes. In the plant at Pischelsdorf, Austria, approximately 112,000 tonnes of wet corn was processed from early September to mid-December (prior year: 75,000 tonnes). For the financial year as a whole, total grain processing volume (of wheat, corn and triticale) at the facility is expected to reach about 795,000 tonnes (prior year: 763,000 tonnes). At HUNGRANA, the subsidiary in Hungary, a total of 1.19 million tonnes of corn should be processed in 2016|17 (prior year: 1.12 million tonnes); the amounts for this equity-accounted joint venture are stated at 100% of the respective total. In this location too, the utilization of wet corn was completed at the start of December. At around 250,000 tonnes, it significantly surpassed the prior year's 226,000 tonnes.
Share of Group revenue Share of Group EBIT1
| Fruit segment €m, except % |
Q1-Q3 2016 17 |
Q1-Q3 2015 16 |
|---|---|---|
| Revenue | 883.1 | 823.5 |
| EBITDA2 | 85.6 | 77.5 |
| Operating profit before | ||
| exceptional items and results of | 56.6 | 47.2 |
| equity-accounted joint ventures | ||
| Exceptional items | 0.0 | (1.7) |
| Operating profit [EBIT]1 | 56.6 | 45.5 |
| EBIT margin | 6.4% | 5.5% |
| Fruit segment €m, except % |
Q3 2016 17 |
Q3 2015 16 |
|---|---|---|
| Revenue | 277.9 | 257.7 |
| EBITDA2 | 27.7 | 27.5 |
| Operating profit before exceptional items and results of |
16.5 | 14.7 |
| equity-accounted joint ventures | ||
| Exceptional items | 0.0 | (0.4) |
| Operating profit [EBIT]1 | 16.5 | 14.3 |
| EBIT margin | 5.9% | 5.5% |
Fruit segment revenue in the first three quarters of 2016|17 grew by 7.2% to € 883.1 million. In the fruit preparations business, a positive trend in sales volumes was counteracted by somewhat reduced selling prices outside the EU (affected by exchange rates, notably in Eastern Europe, Latin America, Egypt and China), thus
producing only slight overall growth in revenue. In the fruit juice concentrate business, revenue increased significantly on a rise in sales prices both for apple juice concentrates and specialty products.
EBIT of € 56.6 million in the first nine months was up 24.4% from one year earlier. The significant earnings improvement was driven above all by the fruit juice concentrate activities (due to higher prices for apple juice concentrates and specialties from the 2015 crop) and to some degree by the fruit preparations business (through growth in sales volumes).
The markets of the fruit preparations business outside Europe are growing significantly – especially Asia, but also North Africa and the Middle East. In saturated markets such as the EU and USA, there is a trend towards increasing consumption of yoghurt without fruit. In Latin America the market growth has slowed a little, due particularly to the economic problems in Brazil. The consumer goods markets of ice-cream, food ser-vices and bakery can be expected to continue to grow.
For apple juice concentrate, the prices in Europe stabilised at a solid level in the past weeks as a result of a rise in demand coinciding with limited quantities of supply. For berry juice concentrates from the 2016 crop there are currently no significant marketing or price risks.
In the fruit preparations activities the harvests this year, with few exceptions, were good. Compared to the prior year, almost all fruits showed a trend of steady to easing purchasing prices. The markets are predominantly well-supplied, with deficits only in pineapple and organic vanilla. For strawberry, the principal fruit, the Mediterranean producer countries offered good availability and favourable prices in the current financial year, cushioning the effect of price increases in Poland, China and Mexico.
1 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.
2 EBITDA represents operating profit before exceptional items, results of equity-accounted joint ventures, and operating depreciation and amortisation.
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In the fruit juice concentrate business, the benign weather in spring and summer 2016 in Europe led to berry harvests of normal quality and quantity. As a result of the overall sufficient supply of raw materials, a trend towards lower berry prices can be seen in 2016 both in the processing sector and in fresh fruit marketing.
The 2016 apple processing season has ended in all major growing regions. Prices in the 2016 campaign were below the prior-year level because of excellent harvests in Poland, the largest apple-producing country in Europe.
Frost damage in May 2016 in Styria (Austria) and in Western Hungary and Slovenia led to a considerably reduced raw material supply in these regions.
AGRANA uses an integrated system for the early identification and monitoring of risks that are relevant to the Group.
There are currently no known risks to the AGRANA Group's ability to continue in operational existence and no future risks of this nature are discernible at present.
A detailed description of the Group's business risks is provided on pages 83 to 87 of the annual report 2015|16.
For disclosures on related party relationships, please refer to the interim consolidated financial statements.
On 1 December 2016 AGRANA expanded its market presence in South America through the acquisition of 100% of the share capital of Main Process S.A., Buenos Aires, Argentina, a manufacturer of fruit preparations. With 175 employees, the company most recently had
annual revenue of € 19 million. The acquisition is expected to strengthen the Group's market position in the fruit preparations sector. The broad product range of Main Process S.A. is an ideal fit with AGRANA's product portfolio. The purchase price consists of a fixed base component of about € 45 million and an earn-out component that is tied to the performance of the business against targets over the 2018|19 and 2019|20 financial years. The fair values of the opening balance sheet and the amount of associated goodwill are currently still being determined. As a result, the disclosures under IFRS 3.B64 (e), (h) - (k) and (q) (ii) cannot be made at present.
In December 2016 AGRANA signed a development loan agreement for € 41.5 million to finance the expansion of the starch activities in Aschach, Austria, and increased the Group's long-term financing through the Südzucker group by € 85 million.
No other significant events occurred after the quarterly balance sheet date of 30 November 2016 that had a material effect on AGRANA's financial position, results of operations or cash flows.
| AGRANA Group €m |
2015 16 Actual |
2016 17 Forecast |
|---|---|---|
| Revenue | 2,477.6 | |
| EBIT | 129.0 | |
| Investment1 | 116.0 | 126 |
Moderate increase2
Significant increase2
AGRANA expects Group revenue in the full 2016|17 financial year to see moderate growth. Operating profit (EBIT) is projected to increase significantly.
| Sugar segment €m |
2015 16 Actual |
2016 17 Forecast |
|---|---|---|
| Revenue | 672.6 | |
| EBIT | 4.3 | |
| Investment1 | 46.1 | 23 |
Steady2
2
Significant increase2
In the Sugar segment AGRANA anticipates revenue in line with the prior year. Improved margins, thanks in part to the cost reduction programme initiated in summer 2015, augur a significant increase in EBIT for the 2016|17 financial year.
| Starch segment €m |
2015 16 Actual |
2016 17 Forecast |
|---|---|---|
| Revenue | 721.6 | ä |
| EBIT | 65.9 | |
| Investment1 | 28.2 | 69 |
ä Slight increase2
Moderate increase2
In the Starch segment, AGRANA's projection for the 2016|17 financial year is for slightly rising sales volumes and a slight increase in revenue. Despite a year-on-year decrease in average bioethanol prices, EBIT is expected to show moderate growth.
| Fruit segment €m |
2015 16 Actual |
2016 17 Forecast |
|---|---|---|
| Revenue | 1,083.4 | |
| EBIT | 58.8 | |
| Investment1 | 41.7 | 34 |
Significant increase2
AGRANA expects the Fruit segment to achieve significant growth in revenue and EBIT in the 2016|17 financial year.
For the fruit preparations business a moderate increase in revenue is predicted – especially in the Europe and Asia regions – driven by rising sales volumes. With expected stable raw material prices, EBIT in this business area is projected to decrease moderately from the level of the 2015|16 financial year. In the fruit juice concentrate business, revenue is forecast to grow significantly, due to higher sales prices as a result of increased raw material prices for the 2015 harvest compared with 2014 (although this revenue outlook may yet be affected by the 2016 harvest). On balance, this growth is expected to lead to a significant increase in EBIT.
Total investment across the three business segments in the financial year, at approximately € 126 million (2015|16: € 116 million), will significantly exceed depreciation of about € 85 million.
1 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.
For definitions of these quantitative terms as used in the 'Outlook' section, see page 21.
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For the first nine months ended 30 November 2016 (unaudited)
| Consolidated income statement | First nine months 1 March – 30 November |
Third Quarter 1 September – 30 November |
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|---|---|---|---|---|
| €000, EXCEPT PER-SHARE DATA | Q1-Q3 2016 17 | Q1-Q3 2015 16 | Q3 2016 17 | Q3 2015 16 |
| Revenue | 1,967,534 | 1,908,029 | 647,277 | 644,569 |
| Changes in inventories of finished and unfinished goods | 687 | 14,126 | 160,012 | 188,036 |
| Own work capitalised | 1,147 | 1,391 | 31 | 104 |
| Other operating income | 22,220 | 34,4001 | 7,989 | 8,3751 |
| Cost of materials | (1,378,359) | (1,369,838) | (586,242) | (629,951) |
| Staff costs | (213,193) | (215,249) | (76,983) | (76,220) |
| Depreciation, amortisation and impairment losses | (62,343) | (64,176) | (26,426) | (28,297) |
| Other operating expenses | (223,735) | (219,615)1 | (87,126) | (74,230)1 |
| Share of results of equity-accounted joint ventures | 23,699 | 19,695 | 8,676 | 7,665 |
| Operating profit [EBIT] | 137,657 | 108,763 | 47,208 | 40,051 |
| Finance income | 25,612 | 36,0581 | 11,603 | 11,0781 |
| Finance expense | (38,914) | (52,398)1 | (14,573) | (16,238)1 |
| Net financial items | (13,302) | (16,340) | (2,970) | (5,160) |
| Profit before tax | 124,355 | 92,423 | 44,238 | 34,891 |
| Income tax expense | (29,211) | (21,628) | (11,742) | (8,036) |
| Profit for the period | 95,144 | 70,795 | 32,496 | 26,855 |
| ƒ Attributable to shareholders of the parent |
89,285 | 70,585 | 29,543 | 26,865 |
| ƒ Attributable to non-controlling interests |
5,859 | 210 | 2,953 | (10) |
| Earnings per share under IFRS (basic and diluted) | € 6,29 | € 4,97 | € 2,08 | € 1,89 |
1 The prior-year data have been restated. Further information is provided on page 16.
| comprehensive income | First nine months 1 March – 30 November |
Third Quarter 1 September – 30 November |
||
|---|---|---|---|---|
| €000 | Q1-Q3 2016 17 | Q1-Q3 2015 16 | Q3 2016 17 | Q3 2015 16 |
| Profit for the period | 95,144 | 70,795 | 32,496 | 26,855 |
| Other comprehensive income/(expense) | ||||
| ƒ Currency translation differences |
2,288 | 2,946 | (440) | 10,697 |
| ƒ Available-for-sale financial assets under IAS 39, after deferred taxes |
(93) | (325) | (372) | (107) |
| ƒ Cash flow hedges under IAS 39, after deferred taxes |
1,236 | 631 | 139 | 1,864 |
| ƒ Equity-accounted joint ventures |
(61) | (2,210) | (329) | 632 |
| Income/(expense) to be recognised in the income statement in the future |
3,370 | 1,042 | (1,002) | 13,086 |
| Changes in actuarial gains and losses on defined benefit pension obligations and similar liabilities (IAS 19), after deferred taxes |
(1,846) | 3,364 | 2,817 | (54) |
| Income recognised directly in equity | 1,524 | 4,406 | 1,815 | 13,032 |
| Total comprehensive income for the period | 96,668 | 75,201 | 34,311 | 39,887 |
| ƒ Attributable to shareholders of the parent |
93,312 | 75,480 | 33,691 | 39,307 |
| ƒ Attributable to non-controlling interests |
3,356 | (279) | 620 | 580 |
| For the first nine months (1 March-30 November) €000 |
Q1-Q3 2016 17 | Q1-Q3 2015 161 |
|---|---|---|
| Operating cash flow before changes in working capital | 186,799 | 160,101 |
| Changes in working capital | (7,881) | (106,830) |
| Interest received and paid and income tax paid, net | (25,855) | (40,714) |
| Net cash from operating activities | 153,063 | 12,557 |
| Net cash (used in) investing activities | (72,436) | (78,680) |
| Net cash (used in) financing activities | (101,755) | (59,021) |
| Net (decrease) in cash and cash equivalents | (21,128) | (125,144) |
| Effect of movements in foreign exchange rates on cash and cash equivalents | (769) | 2,505 |
| Other, valuation-related changes in cash and cash equivalents | (4,661) | 0 |
| Cash and cash equivalents at beginning of period | 109,375 | 193,818 |
| Cash and cash equivalents at end of period | 82,817 | 71,179 |
1 The prior-year data have been restated. Further information is provided on page 16.
• • • • •
•
•
| €000 | 30 November 2016 | 29 February 2016 | 30 November 2015 |
|---|---|---|---|
| Assets | |||
| A. Non-current assets | |||
| Intangible assets, including goodwill | 238,676 | 241,961 | 242,658 |
| Property, plant and equipment | 693,011 | 679,592 | 677,327 |
| Equity-accounted joint ventures | 89,545 | 60,906 | 75,968 |
| Securities | 18,447 | 18,622 | 104,749 |
| Investments in non-consolidated subsidiaries and outside companies | 1,091 | 1,091 | 1,099 |
| Receivables and other assets | 8,828 | 10,602 | 11,206 |
| Deferred tax assets | 13,691 | 14,873 | 22,002 |
| 1,063,289 | 1,027,647 | 1,135,009 | |
| B. Current assets | |||
| Inventories | 712,900 | 654,172 | 702,719 |
| Trade receivables and other assets | 492,752 | 439,521 | 521,710 |
| Current tax assets | 10,643 | 10,774 | 12,490 |
| Securities | 45 | 45 | 46 |
| Cash and cash equivalents | 82,817 | 109,375 | 71,179 |
| 1,299,157 | 1,213,887 | 1,308,144 | |
| C. Non-current assets held for sale | 1,631 | 1,631 | 0 |
| Total assets | 2,364,077 | 2,243,165 | 2,443,153 |
| Total equity and liabilities | 2,364,077 | 2,243,165 | 2,443,153 |
|---|---|---|---|
| 862,506 | 664,363 | 845,385 | |
| Current tax liabilities | 22,449 | 13,059 | 21,135 |
| Trade and other payables | 489,574 | 375,058 | 444,626 |
| Borrowings | 315,380 | 247,820 | 340,967 |
| Other provisions | 35,103 | 28,426 | 38,657 |
| C. Current liabilities | 260,795 | 378,678 | 383,102 |
| Deferred tax liabilities | 3,986 | 4,481 | 12,637 |
| Other payables | 884 | 1,024 | 6,070 |
| Borrowings | 167,905 | 286,028 | 284,036 |
| Other provisions | 20,351 | 19,999 | 15,256 |
| Retirement and termination benefit obligations | 67,669 | 67,146 | 65,103 |
| B. Non-current liabilities | |||
| 1,240,776 | 1,200,124 | 1,214,666 | |
| Non-controlling interests | 60,324 | 55,843 | 61,051 |
| Equity attributable to shareholders of the parent | 1,180,452 | 1,144,281 | 1,153,615 |
| Retained earnings | 665,880 | 629,709 | 639,043 |
| Share premium and other capital reserves | 411,362 | 411,362 | 411,362 |
| A. Equity Share capital |
103,210 | 103,210 | 103,210 |
| For the first nine months (1 March- 30 November) | Equity attributable to shareholders of |
Non controlling |
Total |
|---|---|---|---|
| €000 | the parent | interests | |
| 2016 17 | |||
| At 1 March 2016 | 1,144,281 | 55,843 | 1,200,124 |
| Fair value movements under IAS 39 | 1,143 | 0 | 1,143 |
| Changes in actuarial gains and losses on | (1,846) | 0 | (1,846) |
| defined benefit pension obligations and similar liabilities | |||
| Currency translation gain/(loss) | 4,730 | (2,503) | 2,227 |
| Other comprehensive income/(expense) for the period | 4,027 | (2,503) | 1,524 |
| Profit for the period | 89,285 | 5,859 | 95,144 |
| Total comprehensive income for the period | 93,312 | 3,356 | 96,668 |
| Dividends paid | (56,808) | (469) | (57,277) |
| Additional contributions by other shareholders | 0 | 1,250 | 1,250 |
| Changes in equity interests and in scope of consolidation | (327) | 327 | 0 |
| Other changes | (6) | 17 | 11 |
| At 30 November 2016 | 1,180,452 | 60,324 | 1,240,776 |
| At 1 March 2015 | 1,129,259 | 65,161 | 1,194,420 |
|---|---|---|---|
| Fair value movements under IAS 39 | 426 | 40 | 466 |
| Changes in actuarial gains and losses on | 3,364 | 0 | 3,364 |
| defined benefit pension obligations and similar liabilities | |||
| Currency translation gain/(loss) | 1,105 | (529) | 576 |
| Other comprehensive income/(expense) for the period | 4,895 | (489) | 4,406 |
| Profit for the period | 70,585 | 210 | 70,795 |
| Total comprehensive income/(expense) for the period | 75,480 | (279) | 75,201 |
| Dividends paid | (51,127) | (3,833) | (54,960) |
| Other changes | 3 | 2 | 5 |
| AT 30 November 2015 | 1,153,615 | 61,051 | 1,214,666 |
For the first nine months ended 30 November 2016 (unaudited)
| For the first nine months | Q1-Q3 | Q1-Q3 |
|---|---|---|
| (1 March-30 November) | 2016 17 | 2015 16 |
| €000 |
| Group | 2,033,716 | 1,961,790 |
|---|---|---|
| Fruit | 883,582 | 824,056 |
| Starch | 559,880 | 549,474 |
| Sugar | 590,254 | 588,260 |
| Sugar | (57,746) | (47,793) |
|---|---|---|
| Starch | (7,993) | (5,464) |
| Fruit | (443) | (504) |
| Group | (66,182) | (53,761) |
| For the first nine months | Q1-Q3 | Q1-Q3 |
|---|---|---|
| (1 March - 30 November) | 2016 17 | 2015 16 |
| €000 | ||
| Share of results of equity | ||
| accounted joint ventures | ||
| Sugar | 3,394 | 1,400 |
| Starch | 20,305 | 18,295 |
| Fruit | 0 | 0 |
| Group | 23,699 | 19,695 |
| 10,354 |
|---|
| 52,921 |
| 45,488 108,763 |
| 58,017 56,569 137,657 |
•
•
• • • • • • • •
15
•
•
| Group | 1,967,534 | 1,908,029 |
|---|---|---|
| Fruit | 883,139 | 823,552 |
| Starch | 551,887 | 544,010 |
| Sugar | 532,508 | 540,467 |
| Revenue |
| Investment2 | ||
|---|---|---|
| Sugar | 17,777 | 39,162 |
| Starch | 36,170 | 14,888 |
| Fruit | 15,612 | 24,724 |
| Group | 69,559 | 78,774 |
exceptional items and results of
| equity-accounted joint ventures | |||
|---|---|---|---|
| Sugar | 27,335 | 8,954 | |
| Starch | 37,712 | 34,626 | |
| Fruit | 56,569 | 47,162 | |
| Group | 121,616 | 90,742 |
| Number of employees (FTE)3 | |||
|---|---|---|---|
| Sugar | 2,082 | 2,183 | |
| Starch | 890 | 871 | |
| Fruit | 5,720 | 5,783 | |
| Group | 8,692 | 8,837 |
| Starch | 0 | 0 |
|---|---|---|
| Fruit | 0 | (1,674) |
| Group | (7,658) | (1,674) |
1 Operating profit (EBIT) is after exceptional items and results of equity-accounted joint ventures.
2 Investment represents purchases of property, plant and equipment and intangible assets, excluding goodwill.
3 Average number of full-time equivalents in the reporting period.
The interim report of the AGRANA Group for the period ended 30 November 2016 was prepared in accordance with the rules for interim financial 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 IFRS Interpretations Committee. Consistent with IAS 34, the consolidated financial statements of AGRANA Beteiligungs-Aktiengesellschaft ('AGRANA Beteiligungs-AG') at and for the period ended 30 November 2016 are presented in condensed form. These interim consolidated financial statements, which were not audited or reviewed, were prepared by the Management Board of AGRANA Beteiligungs-AG on 30 December 2016.
The annual report 2015|16 of the AGRANA Group is available on the Internet at www.agrana.com/en/investor for viewing or downloading.
In the preparation of these interim financial statements, certain new or changed standards and interpretations became effective, as described on pages 102 to 105 of the 2015|16 annual report in the notes to the consolidated financial statements, section 2, 'Basis of preparation'.
Except for these newly effective IFRS and interpretations, the same accounting methods were applied as in the preparation of the annual consolidated financial statements for the year ended 29 February 2016 (the latest full financial year).
The notes to those 2015|16 annual consolidated financial statements therefore apply mutatis mutandis to these interim accounts. Corporate income taxes were determined on the basis of country-specific income tax rates, taking into account the tax planning for the full financial year.
From 29 February 2016, currency translation gains or losses were for the first time presented on a gross basis in operating profit (EBIT) and in net financial items. For the comparative period of the prior, 2015|16 financial year, this adjustment led to a net increase of € 9.9 million in other operating income and other operating expenses and a net increase of € 2.7 million in finance income and expenses, relative to the published amounts.
The presentation of the number of employees was changed from a headcount basis (average for the period) to full-time equivalents (average for the period).
In the cash flow statement, the interest and taxes representing cash flows are now presented separately and the foreign currency adjustments are reflected in the balance sheet items to which they relate; the prior-year data have therefore been adjusted for comparability.
In the second quarter of 2016|17, AGRANA Juice Denmark A/S, Køge, Denmark, was liquidated. This deconsolidation had no material impact on the consolidated balance sheet, income statement and statement of comprehensive income. In total, besides the parent company, 57 companies were fully consolidated (29 February 2016 year-end: 58 companies) and 12 companies were accounted for using the equity method (29 February 2016: 12 companies).
Most of the Group's sugar production falls into the period from September to January. Depreciation and impairment of plant and equipment used in the campaign are therefore incurred largely in the financial 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 unfinished goods (through the item 'changes in inventories of finished and unfinished goods').
Operating profit (EBIT) in the first three quarters of 2016|17 was € 137.7 million (Q1-Q3 prior year: € 108.8 million). This rise resulted mainly from significantly improved earnings in the Sugar and Fruit segments and also from an increase in the item 'share of results of equity-accounted joint ventures'. Reflected in operating profit was a net exceptional items expense of € 7.7 million which arose in the Sugar segment from onetime effects in Romania.
The Group's improved net financial items result amounted to a net expense of € 13.3 million (Q1-Q3 prior year: net expense of € 16.3 million) as a consequence primarily of currency translation gains (Q1-Q3 prior year: translation losses) and an improved net performance on interest rate derivatives, and despite valuation-related changes in cash and cash equivalents.
The AGRANA Group's profit for the period was € 95.2 million (Q1-Q3 prior year: € 70.8 million).
In the nine months to the end of November 2016, cash and cash equivalents decreased by € 26.6 million to € 82.8 million.
The operating cash flow of € 186.8 million before changes in working capital was up by € 26.7 million compared with one year earlier, thanks largely to the higher profit for the period. Net cash from operating activities in the first three quarters of 2016|17 was € 153.1 million (Q1-Q3 prior year: € 12.6 million). The improvement stemmed from a much stronger increase in trade payables and a lesser increase in inventories than in the prior-year period.
Net cash used in investing activities, at € 72.4 million (Q1-Q3 prior year: net cash use of € 78.7 million), was somewhat below the year-ago level.
Net cash used in financing activities was € 101.8 million (Q1-Q3 prior year: net cash use of € 59.0 million), up significantly from a year ago. The reason lay in this year's greater reduction of borrowings.
Other, valuation-related changes of € 4.7 million in cash and cash equivalents concerned a bank deposit in Ukraine.
Total assets grew by € 120.9 million compared with 29 February 2016, to € 2,364.1 million. The rise on the assets side of the balance sheet resulted primarily from a considerable increase in inventories and trade receivables. On the liabilities and equity side, the higher balance sheet total was explained especially by a significant increase in trade payables, higher retained earnings thanks to the profit improvement, and a decrease in borrowings. The moderate rise of € 0.5 million in provisions for pensions and termination benefit obligations resulted from the adjustment of the discount rate to 1.5% (29 February 2016: 1.8%).
With shareholders' equity of € 1,240.8 million (29 February 2016: € 1,200.1 million), the equity ratio at the end of November was 52.5% (29 February 2016: 53.5%).
To hedge risks from operating and financing activities (risks related to changes in interest rates, exchange rates and commodity prices), the AGRANA Group to a limited extent uses common derivative financial instruments. Derivatives are recognised at cost at the inception of the derivative contract and are subsequently measured at fair value at every balance sheet date. Changes in value are as a rule recognised in profit or loss. Where the conditions for cash flow hedge accounting under IAS 39 are met, the unrealised changes in value are recognised directly in equity.
In the table below, the financial assets and liabilities measured at fair value are analysed by their level in the fair value hierarchy. The levels are defined as follows under IFRS 7:
•
•
• • • • • • • •
•
• • • • • • • •
17
•
•
• Level 3 consists of those financial instruments for which the fair values are determined on the basis of valuation techniques using significant inputs that are not based on observable market data.
| 30 November 2016 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| €000 | ||||
| Securities (non-current) | 13,152 | 0 | 4,404 | 17,556 |
| Derivative financial assets at fair value through equity (hedge accounting) | 504 | 1 | 0 | 505 |
| Derivative financial assets at fair value through profit or loss (held for trading) |
615 | 797 | 0 | 1,412 |
| Securities (current) | 45 | 0 | 0 | 45 |
| Financial assets | 14,316 | 798 | 4,404 | 19,518 |
| Liabilities from derivatives at fair value through equity (hedge accounting) |
1,171 | 1,051 | 0 | 2,222 |
| Liabilities from derivatives at fair value through profit or loss (held for trading) |
0 | 9,124 | 0 | 9,124 |
| Financial liabilities | 1,171 | 10,175 | 0 | 11,346 |
| 30 November 2015 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| €000 | ||||
| Securities (non-current) | 13,560 | 0 | 5,247 | 18,807 |
| Derivative financial assets at fair value through equity (hedge accounting) | 1,479 | 0 | 0 | 1,479 |
| Derivative financial assets at fair value through profit or loss (held for trading) |
143 | 4,363 | 0 | 4,506 |
| Securities (current) | 46 | 0 | 0 | 46 |
| Financial assets | 15,228 | 4,363 | 5,247 | 24,838 |
| Liabilities from derivatives at fair value through equity (hedge accounting) |
729 | 11 | 0 | 740 |
| Liabilities from derivatives at fair value through profit or loss (held for trading) |
0 | 11,408 | 0 | 11,408 |
| Financial liabilities | 729 | 11,419 | 0 | 12,148 |
For cash and cash equivalents, securities, trade receivables and other assets, and trade and other payables, the carrying amount can be assumed to be a realistic estimate of fair value.
The following table presents the carrying amounts and fair values of borrowings. The fair values of bank loans and overdrafts, other loans from non-Group entities, borrowings from affiliated companies in the Südzucker group and obligations under finance leases are measured at the present value of the payments related to the borrowings:
•
• • • • • • • •
•
• • • • • • • •
•
19
•
| 30 November 2016 | Carrying | Fair |
|---|---|---|
| €000 | amount | value |
| Bank loans and overdrafts, and other loans from non-Group entities | 315,595 | 317,945 |
| Borrowings from affiliated companies in the Südzucker group | 165,000 | 168,138 |
| Finance lease obligations | 2,690 | 2,834 |
| Borrowings | 483,285 | 488,917 |
| 30 November 2015 | Carrying | Fair |
| €000 | amount | value |
| Bank loans and overdrafts, and other loans from non-Group entities | 374,973 | 378,514 |
| Borrowings from affiliated companies in the Südzucker group | 250,000 | 255,723 |
| Finance lease obligations | 30 | 31 |
| Borrowings | 625,003 | 634,268 |
Further details on the fair value measurement of the individual types of financial instruments and their assignment to levels of the fair value hierarchy are provided on pages 144 to 147 of the annual report 2015|16, in section 10.3, 'Additional disclosures on financial instruments'.
In the first three quarters of 2016|17 the AGRANA Group employed an average of 8,692 full-time equivalents (Q1-Q3 prior year: 8,837). The reduction in staff numbers was the result of a lower requirement for seasonal labour in Morocco in the Fruit segment and a normalisation of the campaign length in the Sugar segment.
Credit relationships with companies with significant influence increased to € 75.3 million (29 February 2016: € 54.7 million) and bank deposits at companies with significant influence rose to € 13.5 million (29 February 2016: € 2.4 million). These changes were the result of standard treasury management arrangements. There were no material changes in other related party relationships since the year-end balance sheet date of 29 February 2016. Transactions with relat-ed parties as defined in IAS 24 are conducted on arm's length terms. Further information on individual related party relationships is provided in the AGRANA annual report 2015|16.
On 1 December 2016 AGRANA expanded its market presence in South America through the acquisition of 100% of the share capital of Main Process S.A., Buenos Aires, Argentina, a manufacturer of fruit preparations. With 175 employees, the company most recently had annual revenue of € 19 million. The acquisition is expected to strengthen the Group's market position in the fruit preparations sector. The broad product range of Main Process S.A. is an ideal fit with AGRANA's product portfolio. The purchase price consists of a fixed base component of about € 45 million and an earn-out component that is tied to the performance of the business against targets over the 2018|19 and 2019|20 financial years. The fair values of the opening balance sheet and the amount of associated goodwill are currently still being determined. As a result, the disclosures under IFRS 3.B64 (e), (h) - (k) and (q) (ii) cannot be made at present.
In December 2016 AGRANA signed a development loan agreement for € 41.5 million to finance the expansion of the starch activities in Aschach, Austria, and increased the Group's long-term financing through the Südzucker group by € 85 million.
No other significant events occurred after the quarterly balance sheet date of 30 November 2016 that had a material effect on AGRANA's financial position, results of operations or cash flows.
We confirm that, to the best of our knowledge:
the condensed consolidated interim financial statements, which have been prepared in accordance with the applicable accounting standards, give a true and fair view of the Group's financial position, results of operations and cash flows within the meaning of the Austrian Stock Exchange Act; and
the Group's management report for the first nine months gives a true and fair view of the financial position, results of operations and cash flows of the Group, within the meaning of the Stock Exchange Act, in relation to (1) the important events in the first three quarters of the financial year and their effects on the condensed consolidated interim financial statements, (2) the principal risks and uncertainties for the remaining three months of the financial year, and (3) the reportable significant transactions with related parties.
Vienna, 30 December 2016
Johann Marihart Chief Executive Officer
Business Strategy, Production, Quality Management, Human Resources, Communication (incl. Investor Relations), Research & Development
Stephan Büttner Member of the Management Board Finance, Controlling, Treasury, Information Technology & Organisation,
Mergers & Acquisitions, Legal, Compliance
Fritz Gattermayer Member of the Management Board Sales, Raw Materials, Purchasing & Logistics
Thomas Kölbl Member of the Management Board Internal Audit
• • • •
•
21•
| 12 May 2017 | Results for full year 2016 17 | AGRANA Beteiligungs-AG | |
|---|---|---|---|
| (annual results press conference) | Friedrich-Wilhelm-Raiffeisen-Platz 1 | ||
| 1020 Vienna, Austria | • | ||
| 27 June 2017 | Record date for Annual General | www.agrana.com | |
| Meeting participation | • | ||
| Corporate Communications/Investor Relations | • | ||
| 7 July 2017 | Annual General Meeting for 2016 17 | Hannes Haider | • |
| Phone: +43-1-211 37-12905 | • | ||
| 12 July 2017 | Ex-dividend date | Fax: +43-1-211 37-12926 | • |
| E-mail: [email protected] | • | ||
| 13 July 2017 | Results for first quarter of 2017 18 | • | |
| Corporate Communications/Public Relations | • | ||
| 13 July 2017 | Record date for dividend | Markus Simak | |
| Phone: +43-1-211 37-12084 | |||
| 14 July 2017 | Dividend payment date | Fax: +43-1-211 37-12926 | |
| E-mail: [email protected] | |||
| 12 October 2017 | Results for first half of 2017 18 | • | |
| AGRANA 2015 16 Online: | |||
| 11 January 2018 | Results for first three quarters of 2017 18 | http://reports.agrana.com | • |
| This English translation of the AGRANA report is solely for readers' convenience and is not definitive. In the |
• • |
||
| • |
Contacts
event of discrepancy or dispute, only the German-
language version shall govern.
This interim report contains forward-looking statements, which are based on assumptions and estimates made by the Management 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 differ 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, inflation 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.
| THE QUANTITATIVE STATEMENTS AND DIRECTION ARROWS IN THE 'OUTLOOK' SECTION OF THIS REPORT ARE BASED ON THE FOLLOWING DEFINITIONS: | |
|---|---|
| Modifier | Visualisation | Numerical rate of change |
|---|---|---|
| Steady | | 0% up to +1%, or 0% up to -1% |
| Slight(ly) | ä or | More than +1% and up to +5%, or more than -1% and up to -5% |
| Moderate(ly) | or | More than +5% and up to +10%, or more than -5% and up to -10% |
| Significant(ly) | or | More than +10% or more than -10% |
For financial performance indicators not defined in footnotes, please see the definitions on page 179 of the annual report 2015|16.
In the interest of readability, this document may occasionally use language that is not gender-neutral. Any gender-specific references should be understood to include masculine, feminine and neuter as the context permits.
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.
No liability is assumed for misprints, typographical and similar errors.
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