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DGAP-News: VERBIO Vereinigte BioEnergie AG / Key word(s): Half Year Results VERBIO Vereinigte BioEnergie AG:

06.02.2014 / 07:00

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VERBIO AG continues its positive business development

- Significant increase in biofuel production and sales - Increases in EBITDA to EUR 21.5 million and in EBIT to EUR 10.5 million - Debt reduction by EUR 56.6 million - Raising of the earnings forecast for financial year 2013/2014

Leipzig, 6 February 2014 - VERBIO is very satisfied with the performance in the first half of financial year 2013/2014 and optimistic about the prospects for the current year. For the continued operations consolidated sales increased, compared to the corresponding prior-year figure, by 15 percent to EUR 420.2 million (1 HY 2012/2013: EUR 363.9 million). The significant sales increase is essentially demand-driven and has been favoured by the re-establishment of fair competition for the biofuel market in Europe. Overall, in the first half of 2013/2014, VERBIO produced 309,441 tons of biofuel, an increase of more than 20 percent compared with the first half of 2012/2013. At the same time gross margin improved by about 26 percent, personnel expenses amounted to EUR 11.1 million and other operating expenses turned out to be significantly reduced by 26 percent or EUR 3.7 million to EUR 12.5 million compared to those of the previous year. This initially increased earnings before interest, taxes, depreciation and amortization (EBITDA) significantly by EUR 14.5 million to EUR 21.5 million. Results were enhanced by the increased production and sales volumes, higher selling prices and targeted cost reduction measures. The operating profit (EBIT) for the first half of 2013/2014 is reported at EUR 10.5 million (1 HY 2012/2013: EUR -4.2 million). Consolidated earnings before taxes (EBT) for the reporting period amounted to EUR 8.8 million (1 HY of 2012/2013: EUR -6.0 million), and net results for the period were EUR 7.9 million (1 HY 2012/2013: -6.4 million). This resulted in earnings per share (diluted/undiluted) of EUR 0.13 (1 HY 2012/2013: EUR -0.10).

As of the balance sheet date 31 December 2013, liquid assets totalled EUR 25.1 million. Due to the positive cash flow from operating activities as well as cash inflows from the sale of Mrka locations bank and loan liabilities were reduced up to a total of EUR 56.6 million. With net financial liabilities in the amount of EUR 55.9 million the ratio of net financial liabilities to EBITDA, related to the overall financial year, is again clearly below two.

Segment development

Biodiesel segment benefits from improved conditions

The biodiesel capacity of VERBIO was utilized at a rate of 98 percent in the first half of 2013/2014, which is almost full utilization. Overall, in this period, significantly more biodiesel (209,522 tons) was produced than in the corresponding period (1 HY 2012/2013: 173,387 tons). This is mainly due to the decline in imports of subsidized biodiesel from Argentina and Indonesia, as well as the declining amounts of UCOME (Used Cooking Oil Methyl Ester), and thus to the elimination of the market turmoil which had been ongoing since 2012.

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PRESS RELEASE: VERBIO Vereinigte BioEnergie AG: