- EBITDA increased by 32 percent to EUR 38.1 million and EBIT by 73 percent to EUR 21.5 million compared to the corresponding previous year period
- Fully utilized production capacity of biodiesel and bioethanol
- Best annual results since the Company's IPO expected
Leipzig, May 7, 2015 – VERBIO AG’s earnings growth continued in the first three quarters of the 2014/2015 financial year. The Group’s sales revenues fell by 22 percent to EUR 447.4 million compared to the corresponding period in the previous year (9 M 2013/2014: EUR 573.1 million). The fall was primarily due to the lower price levels for biofuels and to the lower level of merchandise revenues from fossil and biofuel trading.
Earnings before interest, taxation, depreciation and amortization (EBITDA) amounted to EUR 38.1 million, EUR 9.2 million (32 percent) more than in the corresponding period in the previous year (9 M 2013/2014: EUR 28.9 million). The Group's earnings before interest and taxation (EBIT) increased by 73 percent, totaling EUR 21.5 million (9 M 2013/2014: EUR 12.4 million). The Group result before taxes (EBT) totaled EUR 18.1 million (9 M 2013/2014: EUR 9.7 million), and the net result for the period is EUR 16.6 million (9 M 2013/2014: EUR 8.7 million). Based on the result for the period, earnings per share (basic and diluted) is EUR 0.26 (9 M 2013/2014: EUR 0.14).
The improvement in results is primarily due to the successful adjustment to the greenhouse gas quota system in place since January 1, 2015 and the renewed increase in plant capacity utilization rates. Against market trends, the production of biodiesel and bioethanol increased in the period July 1, 2014 to March 31, 2015 to 510,222 tons, an increase of 9 percent over the 466,866 tons produced in the same period of the previous year. In addition, a total of 334.1 GWh of biomethane was produced in the first nine months of the 2014/2015 financial year (9 M 2013/2014: 219.2 GWh), an increase of 52 percent compared to the equivalent period of the previous year. The production of biomethane from 100 percent straw is stable, proving that large-scale industrial production of biofuels from non-foodstuff sources is already possible today. As a result, there should be no further barrier to the voluntary implementation of compulsory biofuel quotas for advanced biofuels following the agreement on iLUC in Brussels.
Development of the Biodiesel, Bioethanol, and Other segments
Sales revenues in the Biodiesel segment in the first three quarters of 2014/2015 were EUR 289.2 million (9 M 2013/2014: EUR 360.9 million). The production of biodiesel increased a further 4 percent to 327,863 tons of biodiesel (9 M 2013/2014: 314,600 tons). This represents a 97 percent production capacity utilization rate. The Biodiesel segment contributed with and EBITDA of EUR 20.3 million (9 M 2013/2014: EUR 19.2 million) and EBIT of EUR 16.5 million (9 M 2013/2014: EUR 15.4 million) to the Group's results.
The Bioethanol segment generated sales revenues of EUR 151.4 million in the 2014/2015 reporting period (9 M 2013/2014: EUR 197.4 million). Production of bioethanol totaled 182,359 tons (9 M 2013/2014: 152,266 tons) and production of biomethane 334.1 GWh (9 M 2013/2014: 219.2 GWh), representing an increase of 20 percent and 52 percent respectively. The bioethanol segment contributed EBITDA of EUR 16.4 million (9 M 2013/2014: EUR 11.1 million) and EBIT of EUR 4.4 million (9 M 2013/2014: EUR -0.4 million) to the Group's results.
Revenues generated in the Other segment totaled EUR 11.7 million in the first nine months of the 2014/2015 financial year (9 M 2013/2014: EUR 34.7 million), primarily from transport and logistic ser-vices. The segment result amounted to EUR 0.6 million (9 M 2013/2014: EUR -1.8 million).
Earnings forecast for the financial year 2014/2015 raised
The Management Board expects an EBITDA in the range of between EUR 48 million and EUR 52 million and EBIT in the range between EUR 26 million to EUR 30 million for the full 2014/2015 financial year. In its most recent previous forecast the Company had expected EBITDA of between EUR 36 million and EUR 44 million and EBIT of between EUR 14 million and EUR 22 million. The amendments to earnings guidance is primarily due to the strong third quarter and the very high order level for the next three months, together with the good margins achieved in the Bioethanol segment. Accordingly, VERBIO expects to close the financial year 2014/2015 with the best results since the Company’s initial public offering. Earnings estimates for the 2015/2016 financial year will be published together with the annual report on September 23, 2015.
Detailed information on business developments in the first nine months of the 2014/2015 financial year are provided in the interim report for the first nine months of 2014/2015. The report can be viewed from 9 a.m. on Verbio's website, www.verbio.de.
Information about VERBIO Vereinigte BioEnergie AG (VERBIO)
VERBIO is one of the leading independent producers and providers of biofuels and is at the same time the only large industrial producer of biodiesel, bioethanol and biomethane in Europe. The production capacity is at a rounded 450,000 tons biodiesel, 260,000 tons bioethanol and 480 gigawatt hours biomethane per year. In the production of its highly efficient fuels, the company uses energy-saving production processes and innovative technologies of own development. The biofuels of VERBIO achieve CO2 reductions of up to 90 percent compared to petrol or diesel. VERBIO delivers its products directly to the European mineral oil conglomerates, mineral oil trading companies, independent gas stations, freight forwarders, municipal utilities and vehicle fleets. In addition, VERBIO markets high-quality pharma glycerine for the consumer goods and cosmetics industry (glycerine is gained as a by-product in biodiesel production). Within the group, VERBIO Vereinigte BioEnergie AG acts as Management Holding. The operative business is exercised by the subsidiaries, VERBIO Diesel Bitterfeld GmbH & Co. KG, VERBIO Diesel Schwedt GmbH & Co. KG, VERBIO Ethanol Schwedt GmbH & Co. KG, VERBIO Ethanol Zörbig GmbH & Co. KG and Märka GmbH. The VERBIO stock (ISIN DE000A0JL9W6 / WKN A0JL9W) has been listed at the Prime Standard of the Frankfurt stock exchange since October 2006.
Important notice
This publication contains certain forward-looking statements concerning the VERBIO group of companies. The forward-looking statements contained herein represent the judgment of VERBIO as of the date of this release and involve risks and uncertainties. Should actual conditions differ from the Company's assumptions, actual results and actions may differ from those anticipated. VERBIO does not intend to update any of these forward-looking statements as far as the wording of the relevant publication is concerned.