1 Ratio of net debt to total equity.
2 Average number of full-time equivalents in the reporting period.
With our new corporate strategy, AGRANA NEXT LEVEL, which was approved by the Supervisory Board on 12 November 2024, we are tackling the challenges of these demanding times head-on and charting a course into a strong future. The Group strategy is designed to strengthen our competitiveness and respond more effectively to economic uncertainty, geopolitical crises, and high volatility of raw material prices. AGRANA NEXT LEVEL focuses on systemic transformation and profitable growth in order to reduce exposure to market volatility and raise baseline profitability. The two new, overarching strategic business areas – “Agricultural Commodities & Specialities” and “Food & Beverage Solutions” – enable the judicious pooling of the Group’s capabilities and allow greater leveraging of existing synergy potential both on the market side and cost side. By the end of the 2027|28 financial year, AGRANA NEXT LEVEL is to cumulatively reduce the Group’s expenses by almost € 160 million, followed by a sustained annual savings effect of at least € 80 million from the measures taken. In this way, AGRANA NEXT LEVEL will serve as the driving force behind AGRANA’s return to longer-term stronger performance.
In this connection we are at a decisive stage – one of setting the course to ensure the competitiveness and long-term security of our Group. The transformation that this entails calls for adaptability, acceptance and levelheadedness from all of us, especially when it comes to unpleasant but unavoidable decisions. From a management perspective, both the current market situation and the business outlook for the Sugar segment categorically demand a swift structural, personnel and logistical consolidation of this business. Accordingly, at a meeting held shortly after the end of the 2024|25 financial year, the AGRANA Supervisory Board approved the proposal of the Management Board for the discontinuation of sugar production at our sites in Leopoldsdorf, Austria, and Hrušovany, Czech Republic, with immediate effect. Going forward, all Austrian sugar production will be concentrated at our plant in Tulln and the Czech production will be consolidated in Opava.
As difficult as these structural measures are for those directly affected, they are essential to AGRANA’s future direction, as the only means of ensuring the stability and long-term viability of sustainable sugar production.
The harm that climate change can do was brought home to much of Central and Eastern Europe in the middle of September 2024. Thousands of people were evacuated in the wake of catastrophic flooding that severely damaged numerous towns and much infrastructure. AGRANA was directly affected by the flooding at several sites, especially in the province of Lower Austria. Production losses occurred primarily at our biorefinery in Pischelsdorf, Austria, and our potato starch factory in Gmünd, Austria. Fortunately and most importantly, no employees suffered harm. We thank all our colleagues who worked extremely hard to resolve the disruptions as rapidly as they could and to keep the impact on our company as small as possible. We also wish to express our sincere gratitude to our suppliers and customers for their support and understanding during that time.
The increasingly frequent weather extremes such as droughts and torrential rains underscore the importance of resolutely countering climate change and further reducing our greenhouse gas emissions, both as a society and a company. In the wake of last autumn’s tangible flood disaster, the objectives of our AGRANA climate strategy seem all the more relevant – and this climate strategy is a central element of AGRANA NEXT LEVEL. We remain on track to achieve net-zero emissions by 2040 for Scope 1 and 2, and by 2050 at the latest for Scope 3. This commitment not only reflects our social responsibility, but is also a strategic necessity in order to remain competitive in the long term. To fulfil the requirements of the Paris Agreement on climate, AGRANA is investing about € 540 million by 2040 in sustainable technologies and energy efficiency.
We plan to further strengthen and advance the collaboration with suppliers and customers in long-term partnerships to promote business models that are resilient to climate change.
