VERBIO AG makes a strong start in the new financial year

Leipzig, November 10, 2022 – Group revenues in the first three months of the financial year 2022/2023 total EUR 592.2 million (Q1 21/22: EUR 350.4 million), an increase of 69 percent compared to the same period in the previous year. The increase in sales revenues compared to the first quarter of the previous year is primarily due to the higher sales prices of both biodiesel and bioethanol. Earnings before interest, taxation, depreciation and amortisation (EBITDA) amounted to EUR 121.4 million, a 202 percent increase compared to the comparative period (Q1 21/22: EUR 40.2 million).

The Group has net cash of EUR 261.9 million at the reporting date (June 30, 2022: EUR 284.1 million). Cash outflows for investments totalled EUR 39.6 million (Q1 21/22: EUR 20.2 million), primarily in connection with the projects to expand the biorefinery in Nevada, Iowa, to increase the Group’s capacity to manufacture advanced biofuels, and build on its own BioLNG/BioCNG infrastructure in Germany to optimise the Group’s value added chain.

The equity ratio was 72.0 percent (June 30, 2022: 72.5 percent).

More than proportionate increase in earnings in the Biodiesel segment

In the Biodiesel segment VERBIO generated record sales revenues of EUR 435.4 million, a 66 percent increase compared to the comparative period (Q1 21/22: EUR 261.6 million). Sales and production volumes were almost unchanged compared to the same period in the previous year. In addition to the very high prices, in particular for advanced biofuels, the Group’s price hedging arrangements also contributed to the positive results for the period. As a result, EBITDA increased by 312 percent to EUR 91.5 million (Q1 21/22: EUR 22.2 million).

In the Bioethanol segment VERBIO achieved record production volumes, producing 261.0 GWh of biomethane and 71,390 tonnes of bioethanol. Although it was not possible to maintain the sales and results levels seen in the previous quarter due to falling sales prices for bioethanol and seasonal effects on the quota business, sales revenues were higher than in the same quarter of the previous year, totalling EUR 152.8 million (Q1 21/22: EUR 86.0 million). EBITDA was EUR 28.9 million (Q1 21/22: EUR 17.1 million).

Forecast confirmed

The numbers for the first quarter of 2022/2023 represent a very good start to the current financial year. In view of the current prices for goods sold and the prices of raw materials, VERBIO confirms the forecast published on September 27, 2022 in its Annual Report 2021/2022 of full year earnings (EBITDA) of EUR 300 million.

Over the remaining course of the year VERBIO aims to accelerate investments in expanding production capacity, product diversification and internationalisation. Accordingly, the Management Board continues to expect net financial assets at the end of the financial year 2022/2023 to be approximately EUR 30 million.

The forecast is made subject to the proviso that the continued course of the Russian aggression in Ukraine and its consequences do not have a significant further negative effect on the market for biofuels, and in particular on the procurement of raw materials and energy.

VERBIO key figures

Detailed information on business developments in the first three months of the 2022/2023 financial year is provided in the quarterly statement for the period ended September 30, 2022, which can be viewed from 8.30 a.m. CET on VERBIO’s website at www.verbio.de/financial-reports.