In the 2023/24 financial year, the fruit, starch and sugar group generated earnings from operations (EBIT) of 151 million euros. In October this year, Agrana announced that EBIT would be ten to 50 percent lower in this year’s 2024/25 financial year.
Now it looks like the result will decline even more. Agrana announced this on Monday. Accordingly, the burden caused by the shutdown of the plant in Pischelsdorf in Lower Austria as a result of the flood in mid-September is higher than originally forecast. Therefore, EBIT in the group is likely to fall by at least half, to a maximum of 75.5 million euros. In addition, there are high sugar stocks and significantly falling sugar sales prices in the EU and worldwide.
The group will provide details on the outlook for all segments for the 2024/25 financial year on January 14th.
ePaper
**Interview with Dr. Franz Müller, Financial Analyst at Agrana Group**
**Editor:** Thank you for joining us today, Dr. Müller. Agrana recently reported a significant decline in expected earnings for the upcoming 2024/25 financial year. Can you explain how the floods in Pischelsdorf have impacted the company’s operations?
**Dr. Müller:** Thank you for having me. The flooding in Pischelsdorf has indeed had a severe impact on our operations. Initially, we anticipated that the EBIT would drop by ten to fifty percent in the coming financial year. However, we’ve now revised our outlook to indicate a potential reduction of at least fifty percent. The flooding not only halted production but also led to higher than expected repair and recovery costs.
**Editor:** That’s indeed concerning. In addition to the plant closure, you mentioned high sugar stocks and falling sales prices. How are these factors affecting Agrana’s overall financial health?
**Dr. Müller:** The sugar market is experiencing significant challenges right now. The high sugar stocks in conjunction with declining sales prices both in the EU and on the global market are creating a tough environment. This saturation and price pressure are expected to further squeeze our margins, compounding the impact of the production disruptions from the flooding.
**Editor:** As we look ahead, what can stakeholders expect in terms of Agrana’s recovery strategy and outlook for the coming financial year?
**Dr. Müller:** We recognize the challenges ahead and are working diligently to navigate through them. Agrana will provide a detailed outlook for all segments in the 2024/25 financial year in the upcoming months. Our focus will be on restoring production in Pischelsdorf as quickly as possible while also managing our sugar inventory effectively. Transparency with stakeholders will be key as we adapt to these market conditions.
**Editor:** Thank you, Dr. Müller, for shedding light on these pressing issues facing Agrana. We appreciate your insights and look forward to your company’s updates.
**Dr. Müller:** Thank you for having me. It’s important to keep the lines of communication open, especially during these challenging times.
