AGRANA Beteiligungs-AG

Analysis

Business Description

AGRANA Beteiligungs-AG (AGRANA) produces and markets sugar, starch and fruits. The company also produces fertilizers, food ingredients, bio-ethanol, betaine, cosmetic and pharma products and animal feed based on the by-products of sugar and starch production.

AGRANA classifies its business operations into three reportable segments: Sugar, Starch and Fruit.

As of February 2021, the company operated 56 production sites in 24 countries across EU-28, Rest of Europe and Other Foreign Countries.

R&D Overview

The company’s research and development (R&D) focuses on developing new products and systems. It also focuses on specialty products, new technologies, and innovative applications for existing products. The company operates The AGRANA Research and Innovation Center (ARIC) for Fruit, Starch and Sugar businesses in Tulln, Austria. This center works with 17 local New Product Dvelopment centres. As of February 2021, it had approximately 270 employees in its R&D operations. In FY2021, the company incurred expenses of EUR18.4 million on R&D, which as a percentage of revenue, stood at 0.7%.

Business Segments
Overview

Offers products such as fruit juice concentrates and fruit preparations, fruit wines, not-from concentrate juices, natural flavors and beverage bases. Provides bakery, dairy products and ice cream, food service and beverage industries.

Key Stats

As of February 2021, operated 41 production sites.

Performance

Reported revenue of EUR1,166.6 million for FY2021, which decreased 1.6% YoY and recorded negative growth of 0.5% during 2019-21. The segment accounted for 45.8% of the company's revenue in FY2021. It reported operating income of EUR41.2 million in FY2021, which decreased 26.4% YoY.

Decline in revenue was due to decrease in sales volumes.

Inventore veritatis
Overview

Offers products in food and non-food and feed sector that includes alcohols/bioethanol, saccharification products, native and modified starches and by-products. Serves food and non-food sector, construction, paper, textile, cosmetic, pharmaceutical, chemical and petroleum industries.

Key Stats

As of February 2021, operated five production sites.

Performance

Reported revenue of EUR821.9 million for FY2021, which grew 1.8% YoY and recorded a CAGR of 3.1% during 2019-21. The segment accounted for 32.3% of the company's revenue in FY2021. It reported operating income of EUR64.8 million in FY2021 as compared to EUR64.2 million in FY2020, which decreased 13.8% YoY.

Growth in revenue was due to increase in sales of starches.

Overview

Offers sugar and sugar specialty products, by products such as feedstuffs and fertilizers to confectionery, beverage, fermentation industries and food resellers.

Key Stats

As of February 2021, operated 10 production sites.

Performance

Reported revenue of EUR558.5 million for FY2021, which grew 14.4% YoY and recorded a CAGR of 5.6% during 2019-21. The segment accounted for 21.9% of the company's revenue in FY2021. It reported operating loss of EUR27.3 million in FY2021, which decreased 57.5% YoY.

Growth in revenue was due to a rise in sales of sugar products.

Geographical Segments
Target Markets

Austria, Hungary, Romania, and Rest of EU

Performance

Reported revenue of US$1,915.2 million for FY2021, which grew 3.1% YoY, and recorded a CAGR of 1.5% during 2019-21. EU-27 accounted for 75.2% of the company’s revenue in FY2021.

Inventore veritatis
Performance

Reported revenue of US$534.4 million for FY2021, which grew 4.5% YoY, and recorded a CAGR of 5.1% during 2019-21. Other Foreign Countries accounted for 21% of the company’s revenue in FY2021.

Target Markets

Bosnia and Herzegovina, Russia, Serbia, Turkey, Ukraine

Performance

Reported revenue of US$97.5 million for FY2021, which decreased 12.3% YoY, and recorded negative growth of 2.2% during 2019-21. Rest of Europe accounted for 3.8% of the company’s revenue in FY2021.