Weak EU harvests dent Agrana profit hopes

Agrana cautioned of a hit to profits in the second-half of its financial year as the starch-to-fruit juice group negotiates disappointing European harvests of crops from cherries to corn.

The Austrian-based group said that earnings for the March-to-August half soared 28% to E99.6m, boosted by a firm performance in particular in sugar, for which “sales to resellers were especially strong”, as was the market for industrial use of the sweetener.

Group revenues rose 25% to E1.60bn.

However, a rise of operating profits of 21% to E142.5m would be cancelled out by setbacks expected in the second half of the financial year, to leave the annual result flat.

The caution reflected a forecast of “high volatility in raw material and selling prices… in combination with reduced crop yields” in a number of the agricultural commodities that Agrana purchases, for conversion into products from ethanol to starch.

Corn hit

The sugar division, which has processing plants in five countries, faced the prospect of a beet crop which will “for weather reasons… fall short of last year’s output”, despite a rise of 10,000 hectares to 103,000 hectares in plantings.

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