Operating profit of EUR 25 to 55 million and higher net financial assets expected for 2018/19
EU compromise opens up further growth potential for renewable fuels after 2020.
Mannheim, 11 July 2018 - CropEnergies AG, Mannheim, started the 2018/19 financial year with a below-average 1st quarter compared to previous years. As already announced on 14 June 2018, revenues decreased by 17 percent to EUR 192 (previous year: 231) million.
EBITDA of EUR 14 (previous year: 33) million was slightly less than half of the previous year's figure. Accordingly, the operating result decreased to EUR 5 (previous year: 24) million. The main reason for the reduction is the significantly lower ethanol price, which was temporarily below the gasoline price. As a result, production was reduced by 8 percent to 257,000 (previous year: 280,000) cubic meters of ethanol. Net financial assets improved further to EUR 41 (28 February 2018: 37) million. A gradual improvement in ethanol prices and results is expected over the course of the year. Revenues of EUR 810 to 860 (previous year: 882) million and an operating profit of EUR 25 to 55 (previous year: 72) million are expected for the full 2018/19 financial year. This corresponds to an EBITDA of EUR 65 to 95 (previous year: 111) million, so that a further improvement in net financial assets and equity is expected. In Brussels on 14 June 2018, the negotiators of the European Parliament, Council and Commission agreed to increase the minimum share of renewable energies in transport from 10 percent in 2020 to 14 percent in 2030. Despite considerable doubts about the environmental and climate benefits of the envisaged fictitious multiple counting, e.g. electricity used in electric vehicles, CropEnergies sees significant progress in the compromise. This also applies to the gradual phase-out of the use of raw materials from carbon-rich areas (e.g. palm oil from rainforest regions) from 2023 onwards. Keeping established renewable fuels from locally produced biomass and the objective of expanding the use of residue- and waste-based fuels create opportunities for both environment and biofuels industry. The precondition for this is a rapid and targeted implementation in the member states. Thanks to its know-how and experience, CropEnergies is well positioned to make mobility even cleaner in the future with sustainably produced renewable fuels. The full financial report for the 1st quarter 2018/19 can be downloaded on the CropEnergies website.
Clean mobility – today and in the future – is CropEnergies’ business. Founded in Mannheim, Germany, in 2006, the member of the Südzucker Group is the leading European manufacturer of sustainably produced ethanol. With its annual production capacity of 1.3 million cubic meters in its German, Belgian, UK and French facilities, CropEnergies produces ethanol which predominantly replaces petrol. The highly efficient production facilities reduce CO2 emissions by approximately 70 percent on average across the whole value-added chain, compared to fossil fuel. In addition to fuel alcohol, CropEnergies produces 150,000 cubic meters of high-purity neutral alcohol which is used in the beverage, cosmetics, and pharmaceutical industry or for technical applications.
The use of local agricultural raw materials also results in more than 1 million tonnes of high-quality protein food and animal feed every year. Through advanced technology and innovation CropEnergies contributes to ensure a sustainable mobility from renewable sources today and in the future through its main product ethanol: mobility – sustainable. renewable. The CropEnergies AG (ISIN DE000A0LAUP1) is listed at the regulated market (Prime Standard) at the Frankfurt Stock Exchange.