Our business performance in the 2024|25 financial year, with operating profit (EBIT) of € 40.5 million (previous year: € 151.0 million) was unfortunately not satisfactory. It should be borne in mind, however, that the past financial year was one marked by powerful economic upheaval. Economic activity in Europe is sluggish and Austria and Germany are in recession. Volatility on the raw material and energy purchasing side continues to be high. Political decisions are often having immediate impacts on the markets. We are operating in a less predictable market environment than ever before.
An important positive is that the Fruit segment, despite the difficult economic setting, delivered a very good performance in the financial year. At the same time, the Starch segment saw a significant year-on-year decline in EBIT, driven by weakening markets due to the economic situation and by the dramatic flood damage in Austria in autumn 2024. In 2024|25 the Sugar segment once again became the Group’s biggest concern: In this business, after a brief period of market recovery, we are once again facing difficult times that will continue to be felt in this new, 2025|26 financial year. A combination of high import volumes from Ukraine, subdued consumption and an expansion of sugar beet planting in the EU drove down prices significantly in the EU sugar market and had a corresponding negative impact on earnings. Additionally, campaign costs in the 2024|25 sugar marketing year were significantly higher than expected due to challenging beet quality grades and historic low sugar content.
Thanks to the Group’s diversified business model, sound balance sheet and, not least, the structural transformation at both the holding company and segment levels through the NEXT LEVEL strategy, we consider AGRANA well-positioned for the future. Regarding the short-term outlook for the 2025|26 financial year, it should be noted that further impacts from the ongoing war in Ukraine are likely, along with a continuing overall intensification of the already high volatility in the markets both on the product and procurement side. In addition, the economic and financial impacts, and duration, of the turmoil in the global tariff landscape are difficult to forecast. We expect Group EBIT for the full year 2025|26 to be steady1.
We endeavour to offer AGRANA’s owners a reliable return even in difficult times and so, in line with our commitment to dividend continuity, we wish to pay you, our esteemed shareholders, a dividend for the 2024|25 financial year as well. The decision to propose a payout of € 0.70 per share sufficiently reflects our financial stability, including the free cash flow generated in 2024|25.
We would like to conclude by thanking our partners, customers, suppliers and all other stakeholders for the valued collaboration in the 2024|25 financial year. Our special thanks go to our employees for their efforts and commitment during these challenging and transforming times. It is only through team spirit and cohesion that constructive systemic change becomes possible. Together we will meet the challenges ahead and secure AGRANA’s successful future.
The Management Board of AGRANA Beteiligungs-AG
1 Also see the Outlook section in the full version of the annual report 2024|25 (including the disclaimer).
