CropEnergies reports increased revenue

By Erin Voegele | February 09, 2015

European-based CropEnergies AG has announced revenues of €626 million ($710.42 million) for the first nine months of fiscal year 2014/2015, up 9.4 percent from €573 million in revenue reported for the same period of the prior year. According to the company, increased consumption and the expansion of trading activities contributed to the growth.

EBITDA was €21 million, down from €62 million the previous year. The company reported an operating loss of €6 million for the nine-month period. CropEnergies attributed the reduced earnings to the slump in European ethanol prices along with lower earnings for food and animal feed products. Ethanol prices fell from €515 per cubic meter in November 2013 to €447 per cubic meter in November 2014. Prices were as low as €434 per cubic meter in July. In a statement, CropEnergies indicated that while raw materials costs were down compared to the prior year, the decrease only partially offset the drop in sales price.

CropEnergies produced 777,000 cubic meters of ethanol during the first three quarters of the fiscal year, up 24 percent from the same period of the previous year. According to the company, it produced more than 300,000 cubic meters during a quarter for the first time. Increased production is attributed to better utilization of the company’s Wilton, U.K., plant.

For the full financial year, the company expects to achieve revenues of €820 million to €860 million, up from €781 million last year. EBIDA is expected to range from €20 million to €40 million, down from €68 million last year. Operating profit is expected to range from €0 to -€20 million.

CropEnergies operates four ethanol plants, including facilities located in Germany, Belgium, U.K. and France. The company also has two tank storage facilities in Rotterdam, Netherlands, and Duisburg, Germany.