Conte Finan Ents: Annual Cial Report
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CONTENTS: ANNUAL FINANCIAL REPORT 2010/2011 25.05.11 19:08 JFB lagebericht_E 2505.indd U1 CONSOLIDATED FINANCIAL STATEMENTS 2010|11 AGRANA GROUP BASED ON IFRS Group management report Consolidated fi nancial statements Consolidated income statement Consolidated statement of recognised income and expense Consolidated cash fl ow statement Consolidated balance sheet Consolidated statement of changes in equity Notes to the consolidated fi nancial statements Statement by the members of the Management Board Independent auditor’s report PARENT COMPANY FINANCIAL STATEMENTS 2010|11 AGRANA BETEILIGUNGS-AG BASED ON AUSTRIAN COMMERCIAL CODE (UGB) Parent company management report Parent company fi nancial statements Parent company income statement Parent company balance sheet Notes to the parent company fi nancial statements Statement by the members of the Management Board Independent auditor’s report JFB lagebericht_E 2505.indd 1 26.05.11 12:29 32 Financial results 40 Starch segment 32 Changes in the scope of consolidation 40 Market environment 33 Revenue and earnings 40 Raw materials, crops and production 33 Investment 41 Investment 34 Financial position 42 Starch: Austria 34 Cash fl ow 42 Starch: Hungary 34 Segment fi nancial results 42 Starch: Romania 35 Events after the reporting date 42 Bioethanol 36 Sugar segment 44 Fruit segment 36 Market environment 44 Market environment 37 Raw materials, crops and production 46 Raw materials and crops 38 Investment 46 Investment 38 Sugar: Austria 47 Business performance 38 Sugar: Hungary 39 Sugar: Czech Republic 48 Environment and sustainability 39 Sugar: Slovakia (corporate social responsibility) 39 Sugar: Romania 53 Research and development 39 Sugar: Western Balkans 56 AGRANA’s staff 39 Sugar: Bulgaria 59 Risk management and system of internal control 62 Disclosures under section 243a (2) UGB 63 Disclosures under section 243a (1) UGB 64 Outlook JFB lagebericht_E 2505.indd 31 25.05.11 19:08 FINANCIAL RESULTS 32 AGRANA GROUP FINANCIAL PERFORMANCE 2010|11 2009|10 Change ¤000 ¤000 % Revenue 2,165,902 1,989,159 +8.9 EBITDA 207,234 176,246 +17.6 Operating profi t before exceptional items 128,053 91,937 +39.3 Operating margin before exceptional items 5.9% 4.6% Exceptional items 0 (5,007) +100.0 Operating profi t after exceptional items 128,053 86,930 +47.3 Net fi nancial items (18,959) 461 > –100.0 Profi t before tax 109,094 87,391 +24.8 Profi t for the period 86,686 72,702 +19.2 Purchases of property. plant and equipment and intangibles1 55,859 48,382 +15.5 Purchases of non-current fi nancial assets 118 941 –87.5 Staff count 8,243 7,927 +4.0 1 Excluding goodwill. The consolidated fi nancial statements for the 2010|11 fi nancial year were prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated fi nancial statements relate to AGRANA’s fi nancial year (the twelve months from March 2010 to February 2011), with comparative data presented for the prior year. CHANGES IN THE SCOPE OF CONSOLIDATION In the second quarter of 2010|11 the newly founded Hungarian subsidiary Biogáz Fejlesztő Kft., whose principal business activity is gas production and gas marketing, was included in the fi nan- cial statements for the fi rst time, by full consolidation. With eff ect from the end of the third quarter of 2010|11, the Egyptian company AGRANA Nile Fruits Processing (SAE) was consolidated for the fi rst time. This new company, in which AGRANA holds a 51% ownership interest, is fully con solidated in the Group fi nancial statements. Lastly, GreenPower E85 Kft., which represents the combined bioethanol production and marketing activities in Hungary, was newly included in the consolidated accounts from January 2011, by proportionate consolidation. The deconsolidations in the 2010|11 fi nancial year related to the liquidation of INSTANTINA Hungária Élelmiszergyartó és Kereskedelmi Kft. v. a., Petőháza, Hungary, and of S.C. Romana Prod s.r.l., Roman, Romania, as well as the merger of Fruimark (Proprietary) Ltd., Cape Town, South Africa, and AGRANA Fruit South Africa Investments (Proprietary) Ltd., Cape Town, with AGRANA Fruit South Africa (Proprietary) Ltd., Cape Town. REVENUE BY REGION REVENUE BY SEGMENT Rest of the world 13.4% Fruit segment (2009|10: 13.1%) 40.2% Austria (2009|10: 40.5%) Rest of Europe 48.2% Sugar segment 9.2% (2009|10: 46.4.%) 32.9% (2009|10: 10.7%) (2009|10: 34.4%) Eastern Europe Starch segment 29.2% 26.9% (2009|10: 29.8%) (2009|10: 25.1%) JFB lagebericht_E 2505.indd 32 25.05.11 19:08 GROUP MANAGEMENT REPORT FINANCIAL RESULTS REVENUE AND EARNINGS segment and represented the relocation of the AGRANA 33 Fruit holding company and goodwill impairment from the Revenue of the AGRANA Group rose in 2010|11 by closure of the plant in Kaplice, Czech Republic. € 176.7 million or 8.9% to € 2,165.9 million (prior year: € 1,989.2 million). The revenue growth in all three segments Net fi nancial items amounted to a net expense of € 19.0 mil- was driven primarily by volume gains, but also by somewhat lion (prior year: net gain of € 0.5 million) and, while including higher average prices (in the Starch and Fruit segments). improved fi nance income, resulted primarily from foreign With revenue of € 713.1 million in the Sugar segment (prior exchange eff ects, which returned to a level near the long-term year: € 684.1 million), the price-induced lower quota sugar average. In contrast to the prior year’s exceptionally high revenue was more than off set by a signifi cant increase in currency translation gains of € 18.9 million, a translation loss non-quota sugar exports, which in addition rose in price. of € 2.5 million was recorded in 2010|11. Revenue in the Starch segment expanded to € 583.2 million (prior year: € 499.2 million), likewise propelled by higher Profi t before tax increased from € 87.4 million in the prior sales volumes and, later in the year, also by rising sales year to € 109.1 million. After a tax expense of € 22.4 million prices. Selling prices of starch products still showed an (representing an eff ective tax rate of 20.5%), the Group’s profi t easing trend in the fi rst half of the 2010|11 fi nancial year for the period was € 86.7 million (prior year: € 72.7 million). as they were brought into line with the lower raw material The profi t for the period attributable to shareholders of prices for last year’s crop, but this trend was reversed from AGRANA grew to € 84.5 million (prior year: € 72.2 million); the middle of the year onwards. In the Fruit segment, thanks earnings per share were thus € 5.95 (prior year: € 5.08). mainly to volume growth in sales of fruit preparations (rep- resenting about 80% of segment sales) and price increases in fruit juice concentrates, AGRANA also achieved a gain in INVESTMENT revenue, to € 869.6 million (prior year: € 805.9 million). Investment (which excludes fi nancial investments) increased Consolidated operating profi t before exceptional items was in the 2010|11 fi nancial year as planned, from € 48.4 mil- € 128.1 million, up 39.4% (€ 36.2 million) from the prior-year lion in the prior year to € 55.9 million. The capital expen- level of € 91.9 million. Profi t increased in all three segments. diture of € 16.0 million in the Sugar segment (prior year: The higher raw material prices experienced since the third € 11.4 million) consisted mainly of replacement investment quarter in the Starch and Fruit segments were almost fully at the facilities in Slovakia, Hungary and the Czech Republic; made up for by selling price increases, thus keeping the pres- in Austria, construction began on the new sugar silo in Tulln. sure on margins relatively mild. As well, the optimisation In the Starch segment, the total investment of € 9.0 million measures initiated in the prior fi nancial year made a positive (prior year: € 10.8 million) was used largely for machinery diff erence in operating profi t before exceptional items. and plant (in Hungary and at the Pischelsdorf, Gmünd and Aschach sites in Austria) for process optimisation and energy Operating profi t after exceptional items in 2010|11 was effi ciency gains. In the Fruit segment, the € 30.8 million € 128.1 million (prior year: € 86.9 million). While no excep- (prior year: € 26.1 million) of capital spending related tional items were recorded in the year under review, a net mostly to production expansion in Austria, Russia and Mexico. expense of € 5.0 million for exceptional items had been As well, in the USA and France, AGRANA invested in produc- recognised in the prior year, which related only to the Fruit tivity improvement. INVESTMENT VERSUS DEPRECIATION ¤m 11 | 81.3 84.3 79.2 2010 73.8 55.9 48.4 Purchases of property, plant and equipment and intangibles (excluding goodwill) 0.9 Depreciation and amortisation refl ected 0.6 0.7 in operating profi t before exceptional items Ratio of investment to depreciation BETEILIGUNGS-AG AGRANA 2008|09 2009|10 2010|11 and amortisation JFB lagebericht_E 2505.indd 33 25.05.11 19:08 AGRANA AT A GLANCE | GROUP MANAGEMENT REPORT | CONSOLIDATED FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS | OTHER INFORMATION 34 FINANCIAL POSITION SEGMENT FINANCIAL RESULTS Total assets at 28 February 2011 amounted to € 1,992.2 mil- Sugar segment lion, an increase of € 104.3 million from the year-earlier level of € 1,887.9 million. There was a decrease of € 21.9 €000 2010|11 2009|10 million in non-current assets, due mainly to the fact that Total revenue 770,587 737,015 investment was below depreciation.