14.11.2006 | Ad hoc announcements
VERBIO publishes figures for first nine months of 2006 Strong growth in sales and earnings compared with 2005
VERBIO Vereinigte BioEnergie AG (ISIN DE000A0JL9W6), one of Europe’s leading producers and suppliers of biofuels, today reported strong growth in sales and earnings for the first nine months of its fiscal year 2006.
Listed in the Prime Standard segment of the German Stock Exchange (Deutsche Börse) since October 16, 2006, the company raised sales revenue to EUR 325.7 million in the first nine months of 2006. This represents an increase of 14.4% or EUR 41.1 million over 2005 as a whole (EUR 284.6 million). In the same period, the company’s EBIT margin before special items rose to 13.8% (2005 as a whole: 8.8%) and after special items to 12.0% (2005 as a whole: 8.4%).
Special items amounting to EUR 5.8 million have to be taken into account in the group’s operating result for the first nine months of 2006. They concern amortization of intangible assets, as well as structural costs for the development of the AG and IPO costs.
Sales revenue in the Biodiesel and Bioethanol segments grew to EUR 234.0 million (2005 as a whole: EUR 205.8 million) and EUR 78.2 million (2005 as a whole: EUR 55.7 million), respectively. Whereas the EBIT margin in the Biodiesel segment fell slightly, it continued to improve in the Bioethanol segment. In the case of biodiesel, the reduction of tax breaks as of August 1, 2006 and the over-20% fall in mineral oil prices both negatively impacted earnings. The recent strong increase in corn prices for our Bioethanol segment, however, was absorbed by higher sales prices and prudent hedging.
“Our development in the first nine months clearly shows that we’re on the right path. Compared with 2005 we have greatly expanded capacities in our biodiesel and, especially, our bioethanol business and were thus able to anticipate the current strong growth in demand,” says Claus Sauter, CEO of Verbio.
Cumulative cash flow from operating activities for the first nine months rose to EUR 37.5 million (2005 as a whole: EUR 18.4 million). “In the period July to September 2006 alone, cash flow from operating activities amounted to EUR 22.8 million, underlining the strong performance of VERBIO’s operating business,” says Dr. Herbert Bäsch, CFO of VERBIO AG.
Consolidated revenue in the period July to September 2006 amounted to EUR 120.3 million. Consolidated EBIT before special items reached EUR 14.6 million (EBIT margin: 12.1%) and after special items EUR 11.2 million (EBIT margin: 9.3%).
Earnings per share amount to EUR 0.13 for the period July to September 2006 and EUR 0.51 for the first nine months of 2006 (2005 as a whole: EUR 0.23).
Over the next few years, the company plans to invest some EUR 300 to 400 million in order to extend its cost and market leadership. Apart from expanding its current facilities, this is to be achieved above all by adding new locations.
Viewed on an annual basis, the Management Board expects that VERBIO will achieve significant growth in consolidated revenues and results for the Group in comparison with previous year’s figures.
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