Agrana hold

Natalia Frey, analyst at Raiffeisen Centro Bank classifies the stock of Agrana (ISIN AT0000603709 / WKN 779535) with the rating continues to “hold” one.

The start of the new year had succeeded. While the share price after the publication of the figures for the fiscal year 2008/09 in anticipation of an improving fiscal 2009/10 had attracted, 1Q 2009/10-Ergebnis have shown that these hopes were not unfounded. The presented
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Figures were partly slightly above market expectations and the outlook for full year had been confirmed. The new additions to the bioethanol segment, the losses in other areas can easily overcompensate and commodity prices and foreign currencies would have played this for AGRANA.

No negative surprises provided that the analysts would believe that, in particular the operating result in the further course of the year could be further improved and the already triggered improvements in operating cash flows should bear its fruits. The prospects were so all in all positive, but unfortunately - as would the analysts believe - also all in all, the course included.

The company had a diversified business model and a strong market position in the fruit preparations and fruit juice concentrates segment. Relevant sugar markets were partially deficient. After the changes of the sugar regime, the EU sugar prices stable than feared. The sugar segment is not konjunktursensitiv. The decline in commodity prices could lead to cost reductions in the production of bioethanol.

The cyclical substitution effects in the fruit preparation segment would be the sales and margin impact. Industrial strength is also konjunktursensitiv. The volatility of the Eastern European currencies would lead to strong earnings fluctuations. The company was taken up by the large shareholders depends.