AGRANA reported a stronger-than-expected first half of its 2026/27 fiscal year, with revenue rising 0.5% to EUR 1.7 billion. EBIT before exceptional items increased to EUR 57.4 million, while including exceptional items, EBIT more than doubled to EUR 63.5 million from EUR 28 million a year earlier. The company attributed the improved profitability to restructuring efforts in the sugar segment, lower production costs, and better market conditions. Despite these gains, the stock remained unchanged at $11.45, reflecting investor caution over weak cash flow, higher debt, and drought-related supply pressures.
The sugar segment saw significant improvements, benefiting from restructuring and improved market conditions, while the starch business benefited from stronger bioethanol margins. However, revenue growth was modest, and the company faced challenges such as elevated energy costs, higher wheat and corn prices, and weaker crop yields across parts of Europe. Free cash flow was negative EUR 9.2 million, partly due to working capital needs and acquisition payments. Net debt increased to EUR 464.1 million from EUR 421 million a year earlier.
AGRANA raised its full-year outlook, expecting a very significant increase in EBIT and higher revenue for 2026/27. The company's Horizon savings program remains on track, and management described the sugar segment as significantly stronger than competitors. By segment, Food & Beverage Solutions is expected to see moderate revenue growth but a decline in EBIT due to weak apple juice concentrate conditions. ACS-Starch is projected to have steady revenue and a significant increase in EBIT, while the sugar segment anticipates a moderate revenue decline but a very significant improvement in EBIT.
CEO Stephan Büttner noted that performance was in line with expectations despite challenging market conditions. He highlighted the company's ability to improve operating performance amid rising energy and raw material prices. The acquisition of esarom, pending merger control approval, is seen as a strategic move to expand higher-value beverage ingredients. However, risks such as drought, weak juice concentrate business, higher energy costs, negative free cash flow, and higher debt remain challenges for the company.