Press release 19.09.2014
CropEnergies with growth in revenues and operating loss in 1st half of 2014/15
Low bioethanol prices in Europe put pressure on industry
Mannheim, 19 September 2014 - In the 1st half of the financial year 2014/15 (1 March 2014 - 31 August 2014), CropEnergies AG, Mannheim, increased its revenues by 9 percent to EUR 405 (previous year: EUR 372) million compared to the previous year. The growth in revenues is the result of additional increases in production and sales of bioethanol as well as of high-protein food and animal feed products.
However, EBITDA decreased significantly to EUR 13 (previous year: EUR 42) million. Accordingly, after depreciation, this results in an operating loss of EUR -4 (previous year: EUR +26) million. The main reason for this drop in profit is the dramatic deterioration of bioethanol prices in Europe. They fell by more than 25 percent from more than EUR 600 per cubic meter at the end of August 2013 to EUR 434 per cubic meter on 22 July 2014 and were at EUR 495 per cubic meter at the end of August 2014. Since the end of November 2013, the price of bioethanol has been more than 10 cents below that of petrol at times. In the same period of time, raw material prices sank by only approximately 10 percent and could only partially compensate for the decrease in bioethanol prices. An additional burden came from the scheduled maintenance standstill of the plant in Zeitz, Germany, in the 2nd quarter as well as temporary technical hold-ups in Zeitz and Wilton, UK.
Correspondent with the developments of the 1st half 2014/15, CropEnergies specifies the outlook for the financial year 2014/15. A growth in revenues of 5 to 10 percent to EUR 820 to EUR 860 (previous year: EUR 781) million is expected. EBITDA should reach a spread of EUR 20 to EUR 40 (previous year: EUR 68) million. Despite the bioethanol prices having risen in the last weeks, CropEnergies - due to continuing uncertainties in the price and market development - now expects an operating result between zero and minus EUR 20 million.
Ensuring mobility in a climate friendly way - today and in the future - is CropEnergies' business. Founded in Mannheim, Germany, in 2006, the young and dynamically growing member of the Südzucker Group is one of the leading European manufacturers of sustainably produced bioethanol for the fuel sector today. With its production capacities of 1.2 million cubic meters of bioethanol per year, CropEnergies produces bioethanol which predominantly replaces petrol in four modern production facilities in Germany, Belgium, the UK, and France. The highly efficient production facilities reduce CO2 emissions by up to 70 percent across the whole value-added chain compared to fossil fuel. With the production sites, the unique logistics network in Europe as well as trading offices in the USA and Brazil, CropEnergies is one of the leading companies in a major emerging market.
At the same time, CropEnergies is an important producer of food and animal feed products. The raw materials which are used such as cereals and sugar beets are completely utilized. As a result, more than 1 milliontonnes of high-quality protein food and animal feed products are manufactured every year out of the non-fermentable components of the raw materials.
Through advanced technology and innovation CropEnergies contributes to ensure a sustainable mobility from renewable sources today and in the future through its main product bioethanol: mobility - sustainable. renewable.
The CropEnergies AG stock (ISIN DE000AOLAUP1) has been listed at the regulated market (Prime Standard) at the Frankfurt Stock Exchange since 2006.
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