Verbio reports earnings up 15% over same period last year

By Verbio AG | May 07, 2020

Verbio Vereinigte BioEnergie AG reported an improvement May 7 in results for the first nine months of the current financial year 2019-’20 compared to the same period in the previous year.

The positive trend in the group’s results is due to the comparatively higher than average good margins in ethanol in the third quarter of 2019-’20. Earnings before interest, taxation, depreciation and amortization (EBITDA) for the nine-month period amounted to 97.1 million euros, 15 percent ahead of the comparative period in the previous year (84.4 million euros). The group result before tax (EBIT) totaled 75.9 million euros compared to 68.5 million euros the same period last year. The group result before taxation (EBT) totaled 75.3 million euros compared to 68.4 million euros in the same period last year, and the net result for the period was 50.2 million euros, compared to 49.7 million euros for the same nine-month period last year. Based on the result for the period, earnings per share amount to 79 eurocents, the same as last year.

The production volume of biodiesel and ethanol in the period from July 1, 2019, to March 31, 2020, totaled 612,957 metric tons, compared with 540,367 tons in the same period the previous year. In addition, 601.6 GWh of biomethane were produced in the first nine months of the financial year 2019-’20, an increase of 17 percent compared with the same period in the previous year.

Development of biodiesel, ethanol segments
The primary drivers of the revenue and results trends in biodiesel in the first nine months of the current financial year 2019-’20 were the increases in production and sales volumes. In contrast, the capacity utilization percentage fell in the current financial year to 86.1 compared to 102.1 percent the previous nine-month reporting period last year due to the increase in capacity. The margins in the third quarter of 2019-’20 improved compared to the first two quarters. There was also a further significant increase in margins in the ethanol segment in the third quarter of 2019-’20, with increased production and sales volumes compared to the previous year.

Earnings estimates for the financial year, risks
Verbio makes no change to the earnings forecast published in an ad hoc report Jan. 22, 2020. Accordingly, EBITDA is expected to be around 110 million euros and the net cash balance at the end of the financial year is expected to be approximately 40 million euros.

There have been no changes to the opportunities and risks presented in the 2018-’19 annual report. However, a significant additional risk has arisen since then in the form of the coronavirus pandemic situation, a unique historical event which could not have been foreseen. The massive effects of the lockdowns worldwide and the deterioration in the economic conditions, which has already taken place and may indeed continue to worsen, also has an effect on Verbio’s results. Verbio will make efforts to minimize the negative effects on earnings, one example of this being the production of disinfectant products starting in March.

Detailed information on business developments in the first nine months of the 2019-’20 financial year are provided in the quarterly statement for the period ended March 31 can be viewed on Verbio’s website.

Matters concerning management board
At its meeting held April 1, the supervisory board made a resolution for the early reappointment of the current members of the management moard of Verbio AG, namely Claus Sauter (chairman, CEO), Prof. Lüdtke (vice-chairman, chief operating officer of the ethanolbiomethane segment), Theodor Niesmann (chief operating officer of the biodiesel segment) and Bernd Sauter (chief operating officer of procurement and logistics), extending their periods of office from the current expiry date of Oct. 31, 2020, to June 30, 2025.

In addition, at its meeting held April 1, the supervisory board appointed Stefan Schreiber as an additional member of the management board with effect from July 1, 2020, until June 30, 2023. He will hold board responsibility for the group’s activities in North America. Schreiber has been employed by Verbio AG as head of business development since July 1, 2017.

With the contract extensions and the appointment of Schreiber as a member of the management board, the supervisory board is putting the Verbio Group on course for continued development.

“In the name of the entire management board I offer my thanks for the confidence that the supervisory board has placed in us,” Sauter said.

Verbio AG is a leading independent bioenergy manufacturer, and is also the only large-scale producer of biodiesel, ethanol and biomethane in Europe. The group has approximately 700 employees at its locations in Saxony, Saxony-Anhalt and Brandenburg as well as at its foreign subsidiaries in India, the U.S., Canada, Poland and Hungary. Verbio concentrates on the use of internally developed innovative technologies and efficient energy-saving production processes. Verbio’s biofuels achieve CO2 savings of up to 90 percent compared to petrol or diesel. The group’s annual production capacity amounts to approximately 660,000 tons of biodiesel, 260,000 tons of ethanol and 750 giga-watt hours of biomethane. In addition, Verbio manufactures biofertilizer and animal feed for agricultural use as well as high-value raw materials for the pharmaceutical, cosmetic and foodstuff industries. Verbio has been listed in the prime standard segment of the Frankfurt Stock Exchange since October 2006.


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