CropEnergies reports lower revenues, improved operating margins

By Erin Voegele | January 19, 2021

European ethanol producer CropEnergies has released financial results for third quarter of its 2020-’21 financial year, reporting improved operating margins for the first nine months of the fiscal year. Sales volumes, however, were down.

Ethanol production for the first nine months of the fiscal year, a period ending Nov. 30, reached 735,000 cubic meters, up from 729,000 cubic meters during the same period of last year. The production of food and animal feed coproducts was also up slightly.

The company generated revenues of EUR 625 million ($757.88 million) during the nine-month period, down from EUR 668,000 during the same period of the previous year. CropEnergies attributed the reduction to lower sales volumes and lower sales prices for food and animal feed products.

EBITDA was EUR 109 million for the period, up from EUR 102 million. The company said the increase was due to higher ethanol sales prices and lower raw materials prices. Operating margin was 12.7 percent, up from 10.5 percent during the first nine months of the previous financial year.

EBITDA for the third quarter was EUR 39 million, up from EUR 37 million during the same three-month period of last year, with an operating profit of EUR 29 million, up from EUR 27 million.

Moving into 2021, CropEnergies said it will continue to work on development projects at its biorefineries. The company said a production plant for biogenic carbon dioxide is now online at its facility in Wanze, Belgium. Also at the Wanze site, the company is investing approximately EUR 50 million in a biomass project that will allow the facility to be completely climate-neutral. That project is expected to begin operations in 2023.

In addition to the Wanze facility, CropEnergies operates currently operates ethanol plants in Zeitz, Germany; Wilton, U.K.; and Loon-Plage, France.