AGRANA has reported a stronger first half of its 2026/27 fiscal year, with revenue increasing 0.5% to EUR 1.7 billion. The company's EBIT before exceptional items rose to EUR 57.4 million, while including exceptional items, EBIT jumped to EUR 63.5 million from EUR 28 million a year earlier. Despite higher energy and raw material costs, the company's stock remained unchanged at $11.45, reflecting investor caution over weak cash flow and higher debt.
The sugar segment benefited from restructuring, lower production costs, and improved market conditions, while the starch business saw gains from stronger bioethanol margins. However, free cash flow was negative EUR 9.2 million, partly due to working-capital needs and acquisition payments. Management raised its full-year outlook, anticipating a significant increase in EBIT for 2026/27.
AGRANA faced elevated energy costs, higher wheat and corn prices, and weaker crop yields across parts of Europe. Profitability improved sharply, helped by restructuring in the sugar business, better foreign exchange results, and lower interest costs. The company's Horizon savings program remained on track, with management describing the sugar segment as significantly stronger than competitors.
The stock's flat reaction suggests investors are taking a wait-and-see approach. While stronger profit trends may support the shares, the market is also focused on negative free cash flow, higher net debt, and the impact of drought on crops and production. AGRANA raised its full-year outlook, expecting a significant increase in EBIT and higher revenue versus the prior year.