Vienna / AT. (ag) In the first quarter of 2008/2009 Austrian Agrana Group achieved revenue growth of 10,3 percent to 495,1 million EUR (Q1 2007/2008: 449 million EUR). The Fruit segment generated the largest revenue share of 42,4 percent; followed by the Sugar segment with 34,5 percent and the Starch segment with 23,2 percent of Group revenue. The rise in revenue was driven in large part by expanded capacity and higher selling prices in the Starch business. The initially expected revenue decrease in the Sugar segment was more than offset by currency translation gains in Central and Eastern Europe. As a result of lower apple juice concentrate sales, the Fruit segment´s revenue was off 3,3 percent from the year-ago level.
Group operating profit before exceptional items contracted by 36 percent in the first quarter to 18 million EUR (Q1 2007/2008: 28,2 million EUR). This reduction resulted from the energy price increases, higher corn prices and strong margin pressure in the Sugar and Starch segments. The Fruit segment´s operating profit was at the year-earlier level.
Overall, the first quarter was characterised by rising energy prices, volatile raw material markets and in some cases a challenging situation on the selling side. «In this tough current environment, we remain true to our strategy of defending the market position in the Sugar segment and growing organically in the Starch and Fruit segments. We will deal with the difficult conditions on the cost side through further process optimisation and savings in energy use. Our capital investment this year will be below the level of depreciation», said Agrana Chief Executive Officer Johann Marihart in Vienna (complete release).
