CropEnergies: Ethanol production, earnings up in fiscal Q1

By Erin Voegele | July 11, 2022

European ethanol producer CropEnergies AG on July 6 released financial results for its fiscal first quarter, reporting higher ethanol production volumes, increased revenues and improved operating profit.

CropEnergies operates biorefineries located in Zeitz, Germany; Wanze, Belgium; Loon-Plage, France; and Wilton, U.K. Together, those four facilities produced 281,000 cubic meters (74.23 million gallons) of ethanol during the first fiscal quarter of 2022-2023, the three months ended May 31. Production was at 235,000 cubic meters during the same period of last year. CropEnergies reported that food and feed coproduct production was also up during the first quarter.

The company reported first quarter revenues of EUR 399 million, up from EUR 214 million during the first fiscal quarter of last year. Operating profit reached EUR 87 million, up from EUR 15 million, while EBITDA improved to EUR 98 million, up from EUR 25 million.

CropEnergies attributed its strong first quarter performance to price hedging for raw materials and energy. Those hedges were in place prior to Russia’s invasion of Ukraine and the associated sharp increase in raw materials and energy prices. The company cautioned that the positive impact on earnings of those early hedging positions will weaken noticeably in the coming months. However, CropEnergies also said it expects that increased energy and raw material costs will be at least partially offset by higher sales prices for ethanol and coproducts.  

A full copy of CropEnergies’ first quarter report can be downloaded from the company’s website