BERLIN (dpa-AFX) - CropEnergies AG, a member of the German sugar producer Suedzucker Group (SUEZF.PK), Thursday reported a decline in operating profit for the nine-month period ended November 30, 2013. However, revenues increased 12 percent helped by higher sales volumes as well as better revenues for food and animal feed products.
Looking ahead, for the full year, the firm expects lower operating profit, but sees about 10 to 20 percent growth in revenues. CropEnergies expects the current developments on the European bioethanol market to burden the operating profit of the financial year 2014/15.
The company, which produces bioethanol for fuel sector, and also food and animal feed products, reported operating profit of 37.2 million euros for the period, which almost halved from 70.2 million euros in the same period last year.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, a key earnings metric, declined to 61.8 million euros from 94.0 million euros last year, reflecting fall in market prices for bioethanol and increase in net raw material expenses.
For the nine-month period, the firm posted revenues of 572.8 million euros, higher than 509.7 million euros in the previous year.
Bioethanol production for the period increased 5 percent from last year. Production was up mainly due to start of production at Ensus in the third quarter, the company said.
CropEnergies noted that decline of bioethanol prices since September 2013, resulted from increase in competition intensity, and due to imports that are circumventing current customs regulations.
According to the company, further operating costs resulted from commissioning of the Ensus bioethanol plant in Wilton, UK, acquired in July 2013, and flood in Zeitz, Germany, in June 2013.
In the financial year 2013/14, CropEnergies expects production and sales volumes to be significantly above those achieved in the previous year, due to the acquisition of Ensus and the expansion in trade volume.
For the fiscal year, the firm expects operating profit to range between 33 million euros and 43 million euros, compared with 87 million euros reported last year. Revenues are expected to increase by between 10 and 20 percent from the previous year's 689 million euros.
On Frankfurt's Xetra, CropEnergies shares closed Wednesday's regular trading at 6.07 euros, up 0.31 percent.
Copyright RTT News/dpa-AFX