Crop Energies reports increased revenue in annual results

By Erin Voegele | May 21, 2014

European ethanol producer Crop Energies AG has reported financial results for its financial year 2013/14, which closed Feb. 28. According to the company, its revenue increased by 13 percent during the year, reaching €781 million ($1.07 billion). During the previous year, Crop Energies reported €689 million in revenue. The increase is attributed to the July 2013 acquisition of U.K.-based Ensus.

Crop Energies reported an operating profit of €34.5 million, down from €87 million the previous year. The operating margin was 4.4 percent, down from 12.6 percent. “Given the difficult market conditions the executive board of CropEnergies is satisfied with the earnings situation in the 2013/14 financial year,” said the company in a statement.

Crop Energies sold more than 1 million cubic meters of ethanol during the 2013/14 crop year. Ethanol production increased 9 percent during the year, reaching 884,000 cubic meters, up from 808,000 cubic meters the previous year. Sales increased by 20 percent reaching 1.01 million cubic meters of ethanol, up from 840,000 cubic meters the previous year.

According to the company, the high volatility of ethanol prices in Europe makes the outlook for the current financial year difficult to predict. However, Crop Energies expects revenue to increase from €850 million to €900 million.

In its results, Crop Energies also noted that current uncertainty in the European Union’s biofuel policy is slowing growth in the ethanol market. According to the company, this uncertainty is making member states hesitant to increase the share of biofuels, including the introduction of E10 in the market.

Crop Energies owns and operates four ethanol plants in Europe, including a 360,000 cubic meter plant Zeitz, Germany, a 300,000 cubic meter plant in Wanze, Belgium, a 100,000 cubic meter plant in Loon-Plage, France, and a 400,000 cubic meter plant in Wilton, Great Britain.