As an Austrian industrial group with an international focus, AGRANA operates globally in its Fruit business, while its Starch and Sugar segments are active mainly in Europe. In these markets, AGRANA seeks or already occupies a leading position in the industrial processing of agricultural raw materials. The Group's value creation extends from being a pure raw material processor at the primary processing stage all the way to providing solutions and complex formulations for the world’s leading brand manufacturers. Long-lasting, stable customer and supplier relationships, respectful treatment of all stakeholders and continual growth in the company’s value are major cornerstones of the corporate strategy, which is guided by the principles of sustainable management. AGRANA aims to provide both its globally operating and its regional customers worldwide with high product quality, optimum service and innovative product development ideas and expertise.
The past several years have seen a very challenging economic environment for the food industry and thus for AGRANA as well, marked by multiple crises, disrupted supply chains, and high inflation in input costs for energy and raw materials. The high proportion of commodity business, mainly concentrated in Central and Eastern Europe, coupled with a rigid divisional structure, has severely tested the company’s resilience, especially in times of crisis. In response, the management launched a comprehensive internal consultation process, supported by external advisors, to realign the company’s strategic direction and establish a new, leaner organisational structure. At the Annual General Meeting in July 2024, the Management Board presented the first cornerstones of the new Group strategy to the public: It outlined the first-time introduction of business areas – “Agricultural Commodities & Specialities” and “Food & Beverage Solutions” – that transcend the existing business segments and are directed by a strategic holding company. In the months that followed, with the Supervisory Board’s detailed involvement, the focus was on fleshing out the draft strategy, elaborating the specifics of the organisational form and also identifying necessary cost-saving and efficiency measures. At its meeting on 12 November 2024, the Supervisory Board approved the new Group strategy presented by the Management Board. In addition to the implementation of NEXT LEVEL as a whole, specific measures supporting the Group’s structural transformation also received approval.
The name of the strategic initiative, “NEXT LEVEL”, signals its role as the next logical step in AGRANA's development, one which addresses today’s changed market conditions and the challenges of tomorrow. The Group’s holding company is given new tasks and, as a strategic holding company, a new kind of responsibility. It will guide and drive the Group’s strategic development in coordination with the operating units and assume direct operational responsibility for specific functions such as finance, human resources, IT and technical procurement. Other holding company functions will be streamlined to the essentials and, in some cases, will have only policy-setting authority over the business segments. The realignment of the holding company is guided by a strict focus on what creates value.
The AGRANA Group possesses deep expertise in the procurement and processing of agricultural raw materials and in organising complex supply chains. At the same time, it has a track record of over 20 years of developing highly tailored product solutions and formulations in close collaboration with customers. In the current Group structure, each segment combines both components of this divergent business typology: the processing of raw materials and sale of commodities on the one hand, and innovative collaboration with customers for unique solutions on the other. Over the years, the diversified structure of three business segments, the global market presence and the breadth of the value chain have shielded the company from excessive risks. However, the structure is now no longer adequate in terms of efficiency. The right combination and pooling of the segments’ respective value-creation stages into two overarching business areas focusing on Agricultural Commodities & Specialities and Food & Beverage Solutions is now seen as the correct strategic response.
In the first of these business areas, the management focus is on raw material procurement, optimised supply chains and the ongoing improvement of processes and technologies. The finished products are bound by clear, generally applicable specifications and market practices. Competitiveness is determined by price and cost factors. The Specialities, as a separate category within this business area, are high-specification products developed for small respective groups of customers. As a rule, AGRANA here is one of only a very few vendors, such as manufacturers of speciality starches used in the construction or cosmetics industries.
In the second business area, Food & Beverage Solutions, the emphasis is on close collaboration with customers. This part of the business represents the secondary processing stage, where added value is generated through innovation and the ability to solve complex customer challenges, such as in the food service, ice cream, beverage base or aroma business. The complete solutions offered in these businesses usually consist of multiple components, with product specifications defined jointly in direct collaboration between the customer and AGRANA. A closer collaboration between AGRANA Fruit and AUSTRIA JUICE in the use of in-house aromas and in mutually supporting their roll-outs to global markets offers considerable synergies for both companies. By bringing together complementary parts of the Group in business areas, their differential market access and different internal and organisational objectives can be combined for synergistic gains.
Combining the commodity business of AGRANA Sugar with that of AGRANA Starch by merging almost their entire organisations responsible for administration, raw material procurement and logistics will make operations much more efficient and cost-effective.
Strategic goal: Customer- and market-oriented global growth. In the Fruit segment, the Group’s business activities are fruit preparations (AGRANA Fruit, about 80% of the segment’s revenue) and fruit juice concentrates (AUSTRIA JUICE, about 20% of segment revenue):
AGRANA wants to consolidate and strengthen its global market position through organic growth and with the help of acquisitions and cooperative new ventures.
Strategic goal: Focus on core markets, on striving for greater competitiveness and then ensuring it in the long term. After the segment’s exceptionally difficult 2024|25, another year of major challenges lies ahead for it. The Sugar segment’s competitiveness is being put to the test. Costs must be reduced, processing efficiency increased and capacity levels adapted to market conditions in order to maintain the market position in the Central, Eastern and Southeastern European countries. AGRANA differentiates itself from the competition through high quality standards, market service, an extensive sugar product portfolio, and by building the Group’s regional brands. The Group’s own production of beet sugar is supplemented by its reselling and refining activities, especially in the Southeastern European countries with beet sugar deficits.
AGRANA’s essential core competency – the large-scale processing of agricultural raw materials into industrial products – is also the basis for the bioethanol business. In Austria, AGRANA is the leading vendor of this climate-friendly fuel thanks to its bioethanol plant in Pischelsdorf. In bioethanol production, AGRANA successfully realises its goal of completely utilising the agricultural raw materials employed, thus enhancing their value-added through the optimal use of all residual components by processing them into co-products.
1 GMO-free or GM-free: Not derived from genetically modified organisms.
Strategic goal: Focus on core markets, on striving for greater competitiveness and then ensuring it in the long term. After the exceptionally difficult last financial year for the segment, another year of major challenges lies ahead. The Sugar segment’s competitiveness is being put to the test. Costs must be reduced, processing efficiency increased and capacity levels adapted to market conditions in order to maintain the market position in the Central, Eastern and Southeastern European countries. AGRANA differentiates itself from the competition through high quality standards, market service, an extensive sugar product portfolio, and by building the Group’s regional brands. The Group’s own production of beet sugar is supplemented by its reselling and refining activities, especially in the Southeastern European countries with beet sugar deficits.
Implementation of the new structure began in November 2024, following its approval by the Supervisory Board. The first step is to transform the holding company into a strategic holding company that assumes responsibility for and centralises tasks in specific areas such as finance, human resources, IT and technical procurement, avoiding duplication in the future. Essentially, the holding company will be streamlined to focus on core functions going forward. Strategy work in the 2024|25 financial year already focused on optimising working capital and net debt.
Another aspect of the ongoing implementation is the optimisation of processes, including realising cost savings in the Sugar and Starch segments, as well as the development of synergy potential that arises when both segments are organised and managed as one business area.
Through the cost reduction component of the new strategy, the Group is planning to achieve total annual cost savings of at least € 80 million on materials, consulting, supply chain and staff; these economies are planned to be fully effective from the 2027|28 financial year. A total of € 15.8 million in savings from the actions taken was already realised in 2024|25. By the end of the 2027|28 financial year, NEXT LEVEL is to cumulatively reduce the Group’s expenses by almost € 160 million and then achieve a sustained savings effect of at least € 80 million annually from the measures.
In addition to the structural transformation at the holding company and divisional level, sustainability remains an integral part of the AGRANA NEXT LEVEL strategy. AGRANA consistently pursues the goal of achieving net-zero emissions in Scope 1 and 2 by 2040 and in Scope 3 by no later than 2050. This commitment is not only an expression of the Group’s social responsibility, but also a strategic necessity in order to ensure competitiveness 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. The collaboration with suppliers and customers in long-term partnerships to promote business models that are resilient to climate change is to be further strengthened and advanced.
Sustainability to AGRANA means the balanced consideration of environmental, economic and social aspects within the Group and in its value chain. In its business activities, AGRANA is committed to making the part of the value chain that it can influence as sustainable as possible. The Group has been actively engaged for many years in sustainable raw material sourcing through the Sustainable Agriculture Initiative Platform (SAI) and the Farm Sustainability Assessment (FSA) developed by the SAI. In the Starch and Sugar segments, 100% of the agricultural raw materials purchased from contract farmers come from FSA- or equivalent-validated sources. AGRANA is also working to preserve and improve biodiversity for sustainable and productive agriculture. By utilising almost 100% of the agricultural raw materials employed and using low-emission technologies in industrial processing, negative impacts on the environment are minimised or avoided.
AGRANA’s employees are absolutely central to its sustainability efforts. Recognising and supporting its people not only contributes to the Group’s long-term competitiveness but also reflects its social responsibility. A safe and healthy work environment is essential for the well-being, productivity and long-term retention of employees. Protecting AGRANA’s people is fundamental to the corporate strategy, with goals such as a sustained reduction in the injury rate. Compliance with labour rights, human rights and social rights is a top priority – both at the Group’s own sites and along its entire supply chain. AGRANA also actively promotes greater representation of women in management positions. A strong corporate culture and high ethical standards are key pillars of AGRANA’s corporate philosophy.
This sustainability strategy forms the basis for the Group’s long-term, positive development – one in which economic, environmental and social goals are in balance for the benefit of AGRANA and its stakeholders.
| AGRANA share data | 2024|25 | 2023|24 | |
|---|---|---|---|
| Closing price at Feb 29/28 year-end | € | 10.55 | 13.35 |
| High | € | 14.24 | 18.10 |
| Low | € | 10.20 | 13.20 |
| (Loss)/earnings per share | € | (0.07) | 1.04 |
| Closing price/earnings ratio at year-end | neg. | 12.8 | |
| Closing book value per share at year-end | € | 18.62 | 18.99 |
| Number of shares at year-end | ’000 | 62,489.0 | 62,489.0 |
| Closing market capitalisation at year-end | €m | 659.3 | 834.2 |
| ISIN CODE AT000AGRANA3 | Exchange/ market segmentVSE/Prime Market | Type of security Ordinary shares | Number of shares 62,488,976 |
| Reuters Code AGRV.VI | Bloomberg Code AGR:AV | Ticker symbol AGR |
In the equity market, the 2024 calendar year was shaped by the actions of the major central banks. Falling inflation allowed interest rates to be cut, which benefited the capital markets. Geopolitical tensions and the wars in Ukraine and Israel continued to have a negative impact on the world economy. Overall, international stock markets had a positive performance in 2024, with sector- and country-specific differences. Thus, the EURO STOXX 50®, the top European equity market index, gained 7.7% (to 4,869.28 points as of the end of the 2024 calendar year) and the German benchmark DAX® index even advanced by 18.8% (to 19,909.14 points). By comparison, the Austrian stock market rose at a slower pace, adding 6.6% over the year; at the end of December 2024 the Austrian national index, the ATX® (price index, i.e., excluding dividends), closed at 3,663.01 points.
AGRANA started the 2024|25 financial year at a share price of € 13.35. Until early July 2024 the share price performance was still slightly positive on a year-to-date basis, with the high for the year reached on 7 June 2024. Since the dividend payment for the 2023|24 financial year and the publication of the results for the first quarter of 2024|25 in mid-July 2024, the share price then receded continually until the end of October 2024. The weak business performance in 2024|25, with lower earnings in the first two quarters, was reflected in the share price. The low for the financial year was reached on 30 October 2024, soon followed by a profit warning with a downward revision of the earnings outlook for the full year. However, after the ad hoc announcement on the newly adopted NEXT LEVEL strategy, the share price stabilised at above € 10.50 since mid-November. The closing price of AGRANA’s shares of € 10.55 at the balance sheet date was off 21.0% from the start of the financial year. The performance of the ATX index over the same period was a gain of 23.9%. AGRANA’s average trading volume1 on the Vienna Stock Exchange was about 30,700 shares per day (previous year: approximately 23,800 shares per day).
1 Trading volume based on double counting, as published by the Vienna Stock Exchange.
AGRANA is committed to a predictable, reliable and transparent dividend policy focused on continuity. The distributions are based not only on the Group’s profit but also on its cash flow and its debt situation, taking into consideration the need to maintain a sound balance sheet structure. In its dividend policy, For the financial year under review, the Management Board will therefore propose to shareholders at the Annual General Meeting on 4 July 2025 to pay a dividend of € 0.70 per share, representing a dividend yield of 6.6 % based on the share price of € 10.55 at the end of February 2025 (prior year: 6.7%). The dividend payment date is 14 July 2025.
| 2024|25 | 2023|24 | ||
|---|---|---|---|
| Dividend per share | € | 0.701 | 0.90 |
| (Loss)/earnings per share | € | (0.07) | 1.04 |
| Dividend payout ratio | % | Neg.1 | 86.5 |
| Dividend yield2 | % | 6.61 | 6.7 |
1 Dividend proposal to the Annual General Meeting.
2 Based on the closing share price at the balance sheet date.
AGRANA has a very long-standing, stable principal shareholder in AGRANA Zucker, Stärke und Frucht Holding AG (“AZSF”), Vienna, in which Zucker-Beteiligungsgesellschaft m.b.H. (“ZBG”), Vienna, and Südzucker AG (“Südzucker”), Mannheim, Germany, are shareholders. Under a syndicate agreement between Südzucker and ZBG, the partners in the syndicate have mutual rights to appoint members to the management board and supervisory board of AGRANA Beteiligungs-AG and Südzucker AG.
In the 2024|25 financial year there was no material change in shareholder structure. To AGRANA’s knowledge, retail investors hold a significant proportion of the free float. Details on the shareholder structure are presented in the section “Capital, shares, voting rights and rights of control” in the full version of the annual report 2024|25.
1 Directly held.
