Capacity adjustments made in production plants
Mannheim, 10 January 2024 – After an extraordinarily strong previous year, CropEnergies AG, Mannheim, generated revenues of EUR 943 (previous year: EUR 1,177) million in the first nine months of the financial year 2023/24 (1 March 2023 – 29 February 2024). EBITDA decreased significantly to EUR 94 (previous year: EUR 267) million, operating profit was reduced to EUR 61 (previous year: EUR 235) million.
The main reasons for this were significantly decreased ethanol sales prices and planned maintenance stoppages, as a result of which production and sales volumes were well below the previous year's level. Ethanol production reached 722 (previous year: 811) thousand cubic metres.
At EUR 312 (previous year: EUR 328) million, revenues in the 3rd quarter also remained below the previous year's figure. Increased sales volumes due to higher production volumes could not compensate for the significantly lower sales prices for ethanol. The operating result reached EUR 27 (previous year: EUR 56) million; this corresponds to EBITDA of EUR 38 (previous year: EUR 66) million. Although slightly improved raw material prices were unable to offset the negative impact of the decline in revenues, earnings improved compared to the 2nd quarter of 2023/24.
For the financial year 2023/24, CropEnergies expects revenues of 1.23 to 1.25 (previous year: EUR 1.49) billion. Operating profit is expected to lie between EUR 40 and EUR 60 (previous year: EUR 251) million. This corresponds to an EBITDA of EUR 85 to EUR 105 (previous year: EUR 294) million. Ethanol prices have fallen sharply since November 2023 and are currently quoted at a level slightly above EUR 600 per cubic metre of ethanol. Against this background, CropEnergies has made capacity adjustments at the plants in recent weeks, which are being reviewed on an ongoing basis.
CropEnergies continues to assume that the increased volatility on the sales, raw material and energy markets, particularly in the previous year as a result of the war in Ukraine, may increase again due to the recent escalation in the Middle East and uncertainties in the implementation of regulatory framework conditions. The introduction of E10 in other European countries continues to point to stable sales of fuel ethanol, although this is still offset by high import volumes.
The main shareholder of CropEnergies AG, Mannheim, Südzucker AG, Mannheim, published its decision on 19 December 2023 to submit a voluntary delisting tender offer to all outstanding shareholders of CropEnergies AG. Both companies signed a delisting agreement in this regard on 19 December 2023. All information in connection with the delisting tender offer is available at the following link: www.powerofplants-offer.com.
The full report for the first nine months of the financial year 2023/24 is available for download on the CropEnergies website.