BERLIN (dpa-AFX) - CropEnergies AG reported that operating profit for the nine-month of the financial year 2013/14 almost halved to 37.2 million euros from 70.2 million euros in the same period last year.
EBITDA for the period declined to 61.8 million euros from last year's 94.0 million euros owing to the fall in market prices for bioethanol at the same time as the increase in net raw material expenses. Further operating costs resulted from the commissioning of the Ensus bioethanol plant in Wilton, UK, acquired in July 2013, and the flood in Zeitz, Germany, in June 2013.
Group revenues for the period increased 12 percent to 572.8 million euros from previous year's 509.7 million euros. Higher sales volumes of bioethanol as well as food and animal feed products significantly accounted for the growth. These were based on increased production volumes especially due to the start of production at Ensus in the third-quarter. A further growth in revenues resulted from higher trading volumes as well as better revenues for food and animal feed products.
In the 2013/14 financial year, CropEnergies said it plans to further strengthen the market position that it has achieved. Production and sales volumes are expected to be significantly above those achieved in the previous year owing to the acquisition of Ensus and the expansion in trade volume. CropEnergies therefore expects revenues to increase by between 10 and 20 percent compared with the previous year's 689 million euros.
CropEnergies expects operating profit to range between 33 million euros and 43 million euros in the full financial year 2013/14, compared to 87 million euros reported last year.
Furthermore CropEnergies expects the current developments on the European bioethanol market to also burden the operating profit of the financial year 2014/15. In addition, CropEnergies has expanded its position in the South American market with the foundation of Ryssen Chile SpA, Santiago de Chile, Chile, and by taking over operations of a Chilean alcohol distributor. In the medium term, CropEnergies will achieve revenues of 1 billion euros.
Copyright RTT News/dpa-AFX