Corporate | 10 May 2012 07:30


VERBIO Vereinigte BioEnergie AG: significantly increases quarterly revenue by 41% and EBIT by 34%


VERBIO Vereinigte BioEnergie AG / Key word(s): Quarter Results

10.05.2012 / 07:30


VERBIO AG significantly increases quarterly revenue by 41% and EBIT by 34%

– Q1 revenue up 41% year-on-year thanks to strong biodiesel and bioethanol sales

– Further improvement in EBITDA and EBIT

– Energy turnaround on roads brings growth to biofuels

Zörbig/Leipzig, 10 May 2012 – Vereinigte BioEnergie AG (VERBIO) increased its consolidated revenue to EUR 200.7 million in the first quarter of 2012, up almost 41% as against the same period of the previous year (Q1/2011: EUR 142.5 million). Factors contributing to this growth included the rise in sale volumes and the price level in the biodiesel and bioethanol segments. Significant growth was also recorded in fossil fuel trading (EUR 17.8 million as against EUR 0 million in Q1/2011) and income from quota sales (EUR 12.3 million as against EUR 1.8 million in Q1/2011). The share of revenue for Märka also rose slightly to EUR 20.8 million in the first quarter of 2012 (Q1/2011: EUR 19.5 million).

EBITDA amounted to EUR 10.6 million, an increase of EUR 0.9 million on the previous year (Q1/2011: EUR 9.7 million). EBIT climbed by 34% to EUR 4.3 million (Q1/2011: EUR 3.2 million).
EBT was stable at EUR 2.2 million (Q1/2011: EUR 2.3 million), and net income for the period rose to EUR 2.1 million (Q1/2011: EUR 2.0 million).

Total assets declined by EUR 15 million as against 31 December 2011 to EUR 643.9 million (31 December 2011: EUR 658.9 million). In particular, the reasons for this include the seasonal reduction in inventories, the rise in trade receivables and the drop in other assets. VERBIO's equity amounted to EUR 333.5 million as at the end of the first quarter of 2012 with an equity ratio of around 52%, a rise of two percentage points as against the end of 2011.

The operating cash flow for the reporting period was EUR 16.6 million (Q1/2011: EUR 39.5 million). The decline essentially resulted from the EUR 30.4 million increase in trade receivables as against the end of 2011, after a drop of EUR 16.4 million in this item in the first quarter of 2011. However, this was offset by the positive effect of the reduction of inventories (EUR 31.4 million; Q1/2011: EUR 21.4 million) and the rise in other liabilities (EUR 17.9 million; Q1/2011: EUR 1.8 million).

As at 31 December 2011, VERBIO had cash and cash equivalents of EUR 28.8 million (31 December 2010: EUR 37.0 million).

VERBIO retains business forecasts

VERBIO is forecasting revenue for the first half of 2012, the 2012 short financial year, of between EUR 350 and EUR 400 million. This is based on the assumption that sales prices in particular remain at their current level. VERBIO anticipates that developments in EBIT will match those in the second half of 2011 (EUR 7.4 million).
VERBIO is aiming for revenue of between EUR 700 and EUR 800 million for the 2012/2013 financial year. EBITDA is expected to amount to between EUR 40 and EUR 45 million with EBIT of EUR 15 to EUR 20 million. Provided that there is no significant change in the economic and regulatory environment currently forecast, VERBIO is anticipating moderate revenue and earnings growth in the short financial year and in the 2012/2013 financial year.

Biofuels a long-term growth market

VERBIO continues to see the biofuel market as a growth market, as without biofuels from renewable energy sources the energy turnaround on the roads and therefore the EU's binding climate targets will not be possible. While pure biodiesel (B100) will only be of minor significance in 2012, VERBIO considers the additives market to be the main sales market for both biodiesel and bioethanol. Acceptance for E10 among German consumers is rising constantly.

Biomethane is increasingly being used in place of natural gas, especially in public transport. In particular, the VERBIO product verbiogas, which is chemically identical to natural gas, has substantial market prospects as it reduces CO 2 emissions per kilometre travelled by up to 90% compared to petrol or diesel. 100% verbiogas is today available at almost 50 natural gas filling stations in Germany. Since 2011, the company has been working on a dual fuel concept in order to market more biomethane as a fuel. A series-manufactured diesel truck can run on a diesel-biomethane mix with the aid of a refit. The tests with the company's own truck fleet have highlighted the high day-to-day practicality of this drive concept. Using biomethane means more than just ecological benefits for haulage and fleet operators – fuel costs are significantly lower than for diesel.

VERBIO is planning to invest around EUR 50 million in the extension of its biomethane facilities in Schwedt and Zörbig in 2012/2013. The first increases in capacity to 60 MW and 45 MW respectively are already underway. The first straw processing plant has also been operational in Zörbig since March 2012 – a further facility is also set to go live before the end of this year. Thus, VERBIO's biomethane plants also process the agricultural by-product of straw in addition to by-products from bioethanol production. There are also plans to build an industrial standalone biomethane facility in both Germany and Hungary. In expanding its biomethane capacity, VERBIO is therefore systematically implementing its policy of producing biomethane without the use of foodstuffs and without diverting land otherwise used for agricultural purposes.


Q1 2012 key figures – Group and segments:

in EUR million
Group Q1 2012 Q1 2011 2011 2010
Sales 200.7 142.5 754.0 520.6
EBIT 4.3 3.2 7.6 10.4
PAT 2.1 2.0 1.3 8.0
Segment reporting
Biodiesel Sales (3rd parties) 116.3 84.2 455.4 334.4
EBIT 0.5 8.3* 15.7* 0.0**
Bioethanol Sales (3rd parties) 61.6 34.3 215.3 158.6
thereof Biomethane Sales (3rd parties) 3.2 1.8 8.3 1.8
EBIT 1.9 -3.5* -11.6* 2.0***
Märka Trading Sales (3rd parties) 20.8 19.5 71.7 11.1
EBIT 1.3 0.3* 2.3* -0.9
Other Sales (3rd parties) 2.0 4.5 11.6 16.5
EBIT 0.5 0.1* 1.6* 5.5
Key figures per share in EUR
EpS (undiluted/diluted) 0.03 0.03 0.02 0.13
Operating cashflow (undiluted/diluted) 0.26 0.63 -0.26 0.41
Number of shares in million 63.0 63.0 63.0 63.0

* Excluding elimination of intercompany results (Q1 2011: in total EUR -2.0; 12 M 2011: in total EUR million -0.4 )
** Expenses from write-downs (EUR million 85.0) excluded
*** Income from reversals of write-downs (EUR million 86.1) excluded.

The full Q1 financial report is available at www.verbio.de/en/investor-relations/news-publications/financial-reports/ .


About VERBIO Vereinigte BioEnergie AG (VERBIO)

VERBIO is one of the leading independent producers and suppliers of biofuels and also the only industrial-scale producer of biodiesel, bioethanol and biomethane in Europe. Nominal capacity currently amounts to around 450,000 tons of biodiesel, 300,000 tons of bioethanol and 480 gigawatt hours of biomethane per year. In the production of its highly efficient fuels, the company uses its own energy-saving production processes and innovative technologies. The biofuels produced by VERBIO achieve CO2 reductions of up to 90% compared with petrol and diesel. VERBIO supplies its products directly to European mineral oil corporations, mineral oil traders, independent petrol stations, haulage companies, public utilities and vehicle fleets. VERBIO AG also markets high-quality pharma glycerine for the consumer goods and cosmetic industries (glycerine is a by-product of biodiesel production). VERBIO Vereinigte BioEnergie AG acts as the management holding company within the Group. The Group's operating business is run by its 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. VERBIO shares (ISIN DE000A0JL9W6 / WKN A0JL9W) have been listed on the Prime Standard of the Frankfurt Stock Exchange since October 2006.

Important note
This corporate news contains forward-looking statements, which are based on assumptions and estimates of the company management of VERBIO Vereinigte BioEnergie AG. Even though the company management believes that these assumptions and estimates are correct, the actual future development and actual future results can deviate substantially from these assumptions and estimates due to many factors. For example, these factors can include alteration of the economic situation, legal and regulatory constraints in Germany and the EU, and changes in the industry. VERBIO assumes no liability and provides no warranty that future developments and actual future results will agree with the assumptions and estimates expressed in this corporate news.



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Language: English
Company: VERBIO Vereinigte BioEnergie AG
Augustusplatz 9
04109 Leipzig
Germany
Phone: +49 (0)341 30 85 30 90
Fax: +49 (0)341 30 85 30 98
E-mail: ir@verbio.de
Internet: www.verbio.de
ISIN: DE000A0JL9W6
WKN: A0JL9W
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
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169030  10.05.2012