Press release 10.04.2015
Ad hoc announcement pursuant to Section 15 of the German Securities Trading Act (WpHG)
CropEnergies expects difficult financial year 2015/16
Mannheim, 10 April 2015 - The revenues of CropEnergies AG, Mannheim, increased to EUR 827 million (previous year: EUR 781 million) in the financial year 2014/15 (1 March 2014 to 28 February 2015). As expected, operating profit fell significantly and reached EUR -11 million (previous year: EUR 35 million). The temporary standstill of the production site in Wilton, UK, which was announced in February 2014, led to restructuring costs and special items of EUR -28 million. In addition to this, there will be one-time costs of EUR 9 million from the depreciation of deferred tax assets. The result after taxes for the full financial year 2014/15 will therefore be negative.
In the context of quarterly reporting, CropEnergies had already drawn attention to the anticipated difficult market conditions in the 1st half of the financial year 2015/16. Even though the ethanol prices in the EU have increased in the last few weeks, there are still doubts about the sustainability of the current price level. Against this background, CropEnergies expects an operating profit in the range of EUR minus 20 to EUR plus 10 million for the financial year 2015/16. In addition, there will be extraordinary expenses of up to EUR 15 million annually during the standstill of the bioethanol plant in Wilton.
CropEnergies continues to assume that the decision of the EU expected for April 2015 will lead to positive impulses for the European bioethanol market in the mid term through an increase of blending quotas and the introduction of E10 in additional member states. This should lead to an improvement in the revenues and earnings situation of bioethanol producers in Europe.
The full annual report for the financial year 2014/15 with additional information about the forecast for the financial year 2015/16 will be published on 19 May 2015.
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 million tonnes 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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