AGRANA 3Q - EBIT in line with RCBe, FY guidance confirmed
3Q 19/20 group EBIT of EUR 18.1 mn contained EUR 0.4 mn of negative one-off effects and was very close to our estimate. The performance of the segments was mixed because the Starch segment was much better than RCBe but the Sugar and Fruit segment results were far lower. The net attributable profit of EUR 13.1 mn was far better than our forecast due to an unusual low tax charge of just EUR 0.2 mn, which in turn was supported by positive deferred taxes of EUR 3.1 mn. Free cash flow generation was relatively poor in 3Q amid high changes to net working capital amid higher inventories in the Sugar segment. Hence net debt widened sequentially by approximately EUR 61 mn to EUR 504 mn, which we regard as a bit disappointing.AGRANA Beteiligungs AG (AGRANA) is an Austria-based company that processes agricultural raw materials. The Company manufactures foods and intermediate products for the downstream food industry, as well as for non-food applications. It operates through three segments: Sugar, Starch and Fruit. The products of the Sugar segment are marketed both directly to consumers through food retailers and to the sugar industry. In the Starch segment, the Company processes and refines mainly corn (maize) and potatoes into starch products. The Fruit segment develops and produces fruit preparations (fruit ingredients) and fruit juice concentrates. The Company operates over 50 production sites globally. The Company's subsidiaries include AGRANA Zucker GmbH, AGRANA Starke GmbH, AGRANA Marketing-und Vertriebsservice Gesellschaft mbH, AGRANA Bioethanol GmbH and Main Process SA, among others. The Company also manufactures animal feed and fertilizers.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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