DGAP-News: VERBIO Vereinigte BioEnergie AG / Key word(s): Final
VERBIO Vereinigte BioEnergie AG: VERBIO AG: 2012/2013 financial year
results marked by one-off effects and market uncertainties
25.09.2013 / 07:30
VERBIO AG: 2012/2013 financial year results marked by one-off effects and
* New strategic direction and adjustments to the group structure lead to
first positive effects
* Positive EBITDA from continuing operations in the fourth quarter of
Leipzig, 25 September 2013 - In order to be able to react quicker and in a
more flexible manner to market changes especially with regard to the
acquisition of raw materials, the Board of VERBIO Vereinigte BioEnergie AG
(VERBIO) with approval of the Supervisory Board has decided to sell Märka
GmbH. The following group information therefore contains figures for the
continuing business segments biodiesel, bioethanol and others; the
comparative periods have been amended accordingly.
Group figures are characterised by one-off effects due to major distortion
of competition and significant market uncertainty within the German
VERBIO registered group turnover of EUR 705.2 million for the 2012/2013
financial year (2011/2012: EUR 772.1 million). Turnover fell by 8.7% and
can be traced back to a fall in production and sales volumes. In the period
between 1 July 2012 to 30 June 2013, a total of 492,788 tonnes of biofuels
(2011/2012: 554,153 tonnes) and 330,213 MWh of biomethane (2011/2012:
261,729 MWh) was produced. The fall in production was a result of the
replacement of local biofuel production by subsidised cheap biodiesel from
Argentina and Indonesia as well as biodiesel originating from used cooking
fats worldwide. In accordance with the reduced revenues, material expenses
were EUR 643.7 million this year and therefore considerably under those of
the 2011/2012 (2011/2012: EUR 716.8 million).
In the light of the difficult prevailing conditions in the 2012/2013
financial year, the earnings before interest, taxes, depreciation and
amortisation (EBITDA) as well as the expenditure due to the loss of
customer relationships totalled up to EUR 3.6 million and thus EUR 33.2
million below that of the previous financial year (2011/2012: EUR 36.8
million). The result was influenced by negative results from commodity
futures totalling up to EUR 1.6 million as well as losses from stock quotas
capitalised in the previous financial year. The impairment test resulted in
amortisations of the goodwill in the biodiesel segment (EUR 70.7 million)
and depreciations of fixed assets in the bioethanol segment (EUR 19.8
million), each without effects on liquidity. In addition, the disposal of
recognised customer accounts (EUR 11.8 million) had a negative effect. This
gives VERBIO an EBIT of EUR -122.3 million for the 2012/2013 financial
year, (2011/2012: EUR 13.8 million; 2012: EUR 4.9 million).
The group result before tax (EBT) for the 2012/2013 financial year is EUR
-126.5 million (2011/2012: EUR 9.8; 2012: EUR 2.8 million); the period
result was EUR -125.9 million (2011/2012: 8.4 million). 2012: 2.1 million).
These results in earnings per share (undiluted/diluted) of EUR -2.00
(2011/2012: EUR 0.13; 2012: EUR 0.03).
EBITDA has improved during the fourth quarter of 2012/2013, and is listed
at EUR 4.4 million.
Cost reduction measures and a new strategic direction were implemented
quickly and decisively
The cost reduction programme announced in December 2012 has also been
rigorously implemented. The tightening of the organisational structures,
spending cuts and also the salary sacrifice on the part of the Board of
Directors and senior management, have made savings of approximately EUR
five million during the second half of the 2012/2013 financial year.
Company debts have been reduced by EUR 97.1 million.
As a consequence of a strategy which focused on creating local value, Märka
ceased its own trading activities and warehouse sites. In total 21 of the
42 Märka locations in total were successfully sold off. By the middle of
2014 the sales process is expected to be finalized. By covering raw
materials requirements, which now largely takes place to order, storage
costs, the risk of price changes and hedging risks as well as reducing
VERBIO's financing needs were significantly reduced.
Amendment of the Renewable Energy Directive - blessing or curse
Ultimately, the way this Renewable Energy Directive is configured will play
a decisive role in the future development of VERBIO and the whole biofuels
sector. It is important that the amendment creates stable framework
conditions for all market participants.
VERBIO is one of the leading producers for 2nd generation biofuels.
verbiogas will profit of the special promotion of 2nd generation biofuels.
Nevertheless, biodiesel and bioethanol are currently the most important
foundations of our business. This is because without the use of
first-generation biofuels, the climate targets set out for 2020 will not be
achieved. Second-generation biofuels are not yet in sufficient quantities.
VERBIO therefore assumes that first-generation biofuels will retain a
significant market share and commit ourselves to ensuring that this is the
The 2013/2014 financial year will be influenced by further one-off effects.
Developments in the first quarter of the new financial year show that the
regulatory measures taken on EU- and national level (anti-dumping
proceedings, revision of the 36. BImSchV) are having an effect and that the
situation in the biofuels market is easing. Production plants are showing
good capacity utilisation up until the end of the year and the margins
achieved have grown. The cost reduction and restructuring measures are also
beginning to bear fruit. The Board considers the current 2013/2014
financial year to be a year of transition in the face of sustained pressure
regarding the implementation of the adopted package of measures for
reducing costs, and in terms of positive effects from optimising the
We expect to achieve a turnover of between EUR 600 and 700 million with an
EBITDA of EUR 17 million for the 2013/2014 financial year. Operating
results (EBIT) will be at approximately EUR -5.0 million, with a
considerable positive cash flow being generated from operating activities.
Positive operating results are expected in the 2014/2015 financial year.
Detailed information regarding business developments in the 2012/2013
financial year can be found in the 2012/2013 financial report, which can be
called up on www.verbio.de after 9am.
Information about VERBIO Vereinigte BioEnergie AG (VERBIO)
VERBIO is one of the leading independent producers and providers of
biofuels and is at the same time the only large industrial producer of
biodiesel, bioethanol and biomethane in Europe. The nominal capacity is at
a rounded 450,000 tons biodiesel, 300,000 tons bioethanol and 480 gigawatt
hours biomethane per year. In the production of its highly efficient fuels,
the company uses energy-saving production processes and innovative
technologies of own development. The biofuels of VERBIO achieve CO2
reductions of up to 90 percent compared to petrol or diesel. VERBIO
delivers its products directly to the European mineral oil conglomerates,
mineral oil trading companies, independent gas stations, freight
forwarders, municipal utilities and vehicle fleets. In addition, VERBIO
markets high-quality pharma glycerine for the consumer goods and cosmetics
industry (glycerine is gained as a by-product in biodiesel production).
Within the group, VERBIO Vereinigte BioEnergie AG acts as Management
Holding. The operative business is exercised by the subsidiaries, VERBIO
Diesel Bitterfeld GmbH & Co. KG, VERBIO Diesel Schwedt GmbH & Co. KG,
VERBIO Ethanol Schwedt GmbH & Co. KG, VERBIO Ethanol Zörbig GmbH & Co. KG
and Märka GmbH. The VERBIO stock (ISIN DE000A0JL9W6 / WKN A0JL9W) has been
listed at the Prime Standard of the Frankfurt stock exchange since October
This Corporate News contains forward-looking statements, which are based on
assumptions and estimates of the company management of VERBIO Vereinigte
BioEnergie AG. Although the company management is of the opinion that these
assumptions and estimates are accurate, the actual future development and
actual future results may differ significantly from these assumptions and
estimates due to various factors. Among these factors may be, for example a
change in the overall economic situation, legal and regulatory framework
conditions in Germany and the EU, as well as changes within the industry.
VERBIO does not assume any guarantee or liability for the consistency of
the future development and the actual results achieved in the future with
the assumptions and estimates expressed in this Corporate News.
VERBIO Vereinigte BioEnergie AG
End of Corporate News
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Company: VERBIO Vereinigte BioEnergie AG
Phone: +49 (0)341 308530-0
Fax: +49 (0)341 308530-998
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
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