Quarterly Report • Nov 12, 2024
Quarterly Report
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for the period ended September 30, 2024 (Q1 2024/2025)
| Results of operations | Q1 2024/2025 | Q1 2023/2024 | Q3 2023/2024 | Q3 2023/2024 | Q6 2023/2024 | 2023/2024 |
|---|---|---|---|---|---|---|
| Revenue | 358.0 | 488.1 | 420.8 | 409.2 | 339.9 | 1,658.0 |
| EBITDA | $-6.6$ | 48.8 | 26.1 | 7.3 | 39.5 | 121.6 |
| EBITDA margin (\%) | $-1.8$ | 10.0 | 6.2 | 1.8 | 11.6 | 7.3 |
| EBIT | $-21.5$ | 36.8 | 13.5 | $-5.6$ | 24.9 | 69.6 |
| Net result for the period | $-22.9$ | 21.8 | 0.8 | $-10.9$ | 8.4 | 20.1 |
| Basic earnings per share (EUR) | $-0.36$ | 0.34 | 0.02 | $-0.18$ | 0.13 | 0.31 |
| Diluted earnings per share (EUR) | $-0.36$ | 0.34 | 0.01 | $-0.17$ | 0.13 | 0.31 |
| Operational statistics | Q1 2024/2025 | Q1 2023/2024 | Q3 2023/2024 | Q3 2023/2024 | Q6 2023/2024 | 2023/2024 |
|---|---|---|---|---|---|---|
| Production (tonnes) | 301,862 | 283,983 | 286,718 | 290,961 | 297,028 | 1,158,690 |
| Production (MWh) | 271,203 | 243,187 | 275,945 | 281,004 | 300,048 | 1,100,184 |
| Utilisation Biodiesel/Bioethanol (\%) ${ }^{\text {1) }}$ | 80.0 | 75.2 | 76.0 | 77.1 | 78.7 | 76.7 |
| Utilisation Biomethane (\%) ${ }^{1)}$ | 54.8 | 49.1 | 55.8 | 56.8 | 60.6 | 55.6 |
| Investments in property, plant and equipment | 25.9 | 44.7 | 54.2 | 30.3 | 50.3 | 179.5 |
| Number of employees ${ }^{2)}$ | 1,540 | 1,337 | 1,376 | 1,367 | 1,395 | 1,395 |
[^0]
[^0]: ${ }^{1}$ At the balance sheet date.
${ }^{2)}$ For the financial year 2024/2025 the annual production capacity of the production plants is as follows:
biodiesel: 710,000 tonnes; bioethanol: 800,000 tonnes; biomethane: 1,980 GWh.
| Group key figures | Segment key figures | Business report and the Group's position | Consolidated profit and loss account | Consolidated balance sheet | Consolidated statement of cash flows | Financial calendar |
|---|---|---|---|---|---|---|
| Net asset position | 30.09.2024 | 30.09.2023 | 31.12.2023 | 31.03.2024 | 30.06.2024 |
|---|---|---|---|---|---|
| Net debt | 63.1 | 10.1 | 13.6 | 55.0 | 32.9 |
| Equity | 884.9 | 945.8 | 929.0 | 916.4 | 928.2 |
| Equity ratio (\%) | 65.0 | 72.6 | 69.3 | 68.4 | 67.4 |
| Balance sheet total | 1,361.7 | 1,303.2 | 1,340.9 | 1,339.3 | 1,377.8 |
| Financial position | Q1 2024/2025 | Q1 2023/2024 | Q3 2023/2024 | Q3 2023/2024 | Q6 2023/2024 | 2023/2024 |
|---|---|---|---|---|---|---|
| Operating cash flow | $-6.1$ | 19.3 | 34.1 | 15.5 | 47.9 | 116.8 |
| Operating cash flow per share (EUR) | $-0.10$ | 0.30 | 0.54 | 0.24 | 0.75 | 1.83 |
| Cash and cash equivalents ${ }^{\text {1) }}$ | 121.3 | 155.3 | 142.5 | 136.1 | 132.6 | 132.6 |
[^0]
[^0]: ${ }^{1)}$ At the balance sheet date; includes amounts held in segregated accounts.
| Biodiesel | Q1 2024/2025 | Q1 2023/2024 | Q3 2023/2024 | Q3 2023/2024 | Q6 2023/2024 | 2023/2024 |
|---|---|---|---|---|---|---|
| Revenue | 197.1 | 322.8 | 250.1 | 217.8 | 196.8 | 987.5 |
| EBITDA | 15.4 | 44.9 | 29.3 | 11.4 | 28.5 | 114.1 |
| EBIT | 12.5 | 42.2 | 26.3 | 8.6 | 25.7 | 102.8 |
| Production (tonnes) | 161,833 | 161,291 | 160,553 | 161,274 | 154,165 | 637,283 |
| Utilisation (\%) ${ }^{5}$ | 91.2 | 90.9 | 90.5 | 90.9 | 93.4 | 89.8 |
| Number of employees ${ }^{2)}$ | 248 | 220 | 221 | 230 | 215 | 240 |
| Bioethanol/Biomethane | Q1 2024/2025 | Q1 2023/2024 | Q3 2023/2024 | Q3 2023/2024 | Q6 2023/2024 | 2023/2024 |
| Revenue | 157.5 | 162.0 | 166.5 | 188.1 | 139.9 | 656.5 |
| EBITDA | $-21.5$ | 3.0 | $-5.2$ | $-5.2$ | 9.9 | 2.5 |
| EBIT | $-32.4$ | $-5.2$ | $-13.7$ | $-14.0$ | $-0.8$ | $-33.7$ |
| Production (tonnes) | 140,029 | 122,692 | 126,165 | 129,687 | 142,863 | 521,407 |
| Production (MWh) | 271,203 | 243,187 | 275,945 | 281,004 | 300,048 | 1,100,184 |
| Utilisation Bioethanol (\%) ${ }^{5}$ | 70.0 | 61.3 | 63.1 | 64.8 | 122.1 | 65.2 |
| Utilisation Biomethane (\%) ${ }^{1)}$ | 54.8 | 49.1 | 55.8 | 56.8 | 92.3 | 55.6 |
| Number of employees ${ }^{2)}$ | 765 | 663 | 700 | 659 | 669 | 669 |
| Other | Q1 2024/2025 | Q1 2023/2024 | Q3 2023/2024 | Q3 2023/2024 | Q6 2023/2024 | 2023/2024 |
| Revenue | 9.3 | 7.3 | 7.8 | 8.2 | 8.3 | 31.6 |
| EBITDA | $-0.4$ | 0.9 | 2 | 1.1 | 1.1 | 5.1 |
[^0]
[^0]: ${ }^{5}$ For the financial year 2024/2025 the annual production capacity of the production plants is as follows:
biodiesel: 710,000 tonnes; bioethanol: 800,000 tonnes; biomethane: 1,980 GWh.
${ }^{6}$ At the balance sheet date.
Verbio generated revenues of EUR 358.0 million in the first quarter (Q1 2023/2024: EUR 488.1 million). The lower level of revenues is due to lower price levels and to the change in the structure of the purchase and sales contracts for the production volumes of biodiesel in North America from December 2023. These lower revenues were offset to some extent by higher sales volumes in the Bioethanol/Biomethane segment.
Verbio's earnings before interest, taxes and depreciation and amortisation (EBITDA) were EUR -6.6 million (Q1 2023/2024: EUR 48.8 million). The market environment for biofuels in Europe continued to weaken in the first quarter, and the gross margin fell significantly. This trend was primarily driven by a lower demand for greenhouse gas (GHG) reductions in the German market. In contrast, in the first half of 2023/2024 Verbio was still able to benefit from contractually fixed and more attractive GHG premiums, meaning that the basis for comparison is at a high level.
At the same time, changes in the values of financial assets due to the weak dollar and changes in the fair values of open commodity forward contracts had a negative impact on earnings. As a result, in Q1 2024/ 2025, for the first time, the earnings from the Group's European activities were not sufficient to offset the EBITDA losses resulting from the growth of the Group's North America business.
The Group result before interest and taxes (EBIT) totalled EUR - 21.5 million (Q1 2023/2024: EUR 36.8 million). The profit or loss for the period amounted to EUR -22.9 million
(Q1 2023/2024: EUR 21.8 million). Based on the result for the period, earnings per share are EUR -0.36
(Q1 2023/2024: EUR 0.34).
Cash flow from operating activities in the first three months of the financial year 2024/2025 amounted to EUR -6.1 million (Q1 2023/2024: EUR -19.3 million). With a lower result for the period amounting to EUR - 22.9 million (Q1 2023/2024: EUR 21.8 million), the slight improvement compared to the previous year was largely driven by the reduction in trade receivables (Q1 2024/2025: a reduction of EUR 32.7 million; Q1 2023/2024: an increase of EUR 17.6 million) together with an increase in the trade payables balance (Q1 2024/2025: an increase of EUR 13.8 million; Q1 2023/2024: a decrease of EUR 4.0 million). In contrast, however, cash tied up in working capital increased, particularly in inventories (Q1 2024/2025: an increase of EUR 23.6 million; Q1 2023/2024: an increase of EUR 3.6 million) and in other assets and other current financial assets (Q1 2024/2025: an increase of EUR 15.1 million; Q1 2023/2024: a decrease of EUR 11.5 million).
Driven by investments made in property, plant and equipment, total cash outflows in the first three months of 2024/2025 amounted to EUR 33.1 million (Q1 2023/2024: EUR 50.1 million), which largely also corresponds to the total cash flows from investing activities.
The cash flows from financing activities in the current reporting period largely consisted of cash inflows from drawdowns of financial liabilities (Q1 2024/2025: EUR 30.0 million; Q1 2023/2024: EUR 39.8 million), which were offset to a small extent by cash outflows for the repayment of financial liabilities (Q1 2024/2025: EUR 12.5 million; Q1 2023/2024: EUR 56.5 million).
As a result of the above, cash and cash equivalents fell by a total of EUR 24.6 million in the period from July 1, 2024 to September 30, 2024. Cash and cash equivalents reported in the balance sheet at September 30, 2024 amounted to EUR 96.9 million.
The Group's bank and loan financing arrangements of EUR 184.3 million are offset by cash and cash equivalents and cash held in segregated accounts totalling EUR 121.3 million, so that the reported net debt at September 30, 2024 amounted to EUR 63.1 million (June 30, 2024: EUR 10.1 million).
In the Biodiesel segment Verbio generated revenue of EUR 197.1 million in the first quarter of the financial year 2024/2025 (Q1 2023/2024: EUR 322.8 million). With production volumes stable, the revenue trends were primarily driven by the sharp decline in biodiesel prices and the lower level of sales of GHG quotas in Europe. In addition,
the changes to the manner in which purchase and sales contracts for the production volumes in Canada have been structured since December 2023 means that they are seen as processing contracts in economic terms, with the result that there has been a reduction - with no effect on EBITDA - in the reported amounts for revenues and in the cost of raw materials compared to the same period of the previous year.
The EBITDA amounted to EUR 15.4 million in the first quarter of 2024/2025, following EUR 44.9 million in the first quarter of 2023/2024. In addition to the lower absolute product margin despite favorable rapeseed oil procurement, the low GHG quota prices in Europe also had a negative impact on earnings in comparison with Q1 2023/2024.
Revenues in the Bioethanol/Biomethane segment in all regions remained stable as a result of increases in production and sales volumes, despite lower sales prices (Q1 2024/2025: EUR 157.5 million; Q1 2023/2024: EUR 162.0 million). In comparison to the previous quarter (Q6 2023/2024) there was a fall in the production volumes of biomethane since the raw material used in the plant currently being ramped up in Nevada, Iowa (USA) has been switched from corn to stillage - a residue from ethanol production.
The segment EBITDA amounted to EUR - 21.5 million in the first quarter, compared with EUR 3.0 million in the first quarter of 2023/2024. In Europe, the slight fall in grain procurement prices, accompanied by significantly lower GHG quota prices and premiums and declining ethanol prices, was not able to contribute to support results. In addition, negative results from commodity forward contracts and changes in the fair values of financial assets
due to the weak dollar had a negative impact on results. The negative year-on-year change in EBITDA resulting from the above was EUR 8.3 million. In the USA the Group was able to reduce the growth-driven EBITDA losses compared to the same quarter of the previous year, thanks to improvements in the capacity utilisation.
As already communicated in the ad hoc announcement on September 10, 2024, and confirmed with the publication of the annual report on September 26, 2024, the Executive Board expects to generate EBITDA in the range of EUR 120 million to EUR 160 million in financial year 2024/2025. Net debt is expected to increase to a maximum of EUR 190 million at the end of the financial year as a result of planned investments in expanding production capacities in Europe and North America as well as in biobased speciality chemicals, the Group's future growth business.
In principle, Verbio welcomes the paper published by the German Federal Ministry for the Environment (BMUV) on September 20. It is expected to have a positive effect in the second half of the year as a result of significantly higher sales levels for GHG quotas. However, there is uncertainty as to whether an impairment of the carrying values of inventories of GHG quotas to reflect lower net realisable values (in accordance with IAS 2) will need to be recognised by the end of the year depending on the further development of GHG quota prices in 2024. A potential impairment write-down under the assumption
of increasing GHG quota prices going forward would result in unrecognised reserves being created, which would result in future earnings that may be generated from 2027.
The draft paper provides for the suspension of the option of carrying forward excess GHG reductions from one commitment year to the following year for the years 2025 and 2026. This suspension of the carry forward of GHG quotas aims to increase the demand for quota fulfilment options, and to support the price of GHG quotas in 2025 and 2026. Since the publication of the draft paper demand for the GHG quota year 2024 has come to an almost complete standstill.
The deadline for trade associations to comment on the BMUV draft expired on October 11, 2024. A cabinet resolution is expected by the end of November. Controls and sanctions, also outside Europe, remain essential.
There have been no changes to the opportunities and risks presented in the 2023/2024 annual report. In Verbio's assessment, the draft paper issued by the BMUV in the reporting period will, above all, provide new opportunities. Please refer to the information provided in the forecast report for further details.
There are no present risks or discernible potential risks that represent a threat to the ability of the Group to continue as a going concern.
| EUR (thousands) | Q1 2024/2025 | Q1 2023/2024 |
|---|---|---|
| 1. Revenue | 358,000 | 488,135 |
| 2. Changes in inventories of finished goods and work in progress | 10,946 | 306 |
| 3. Own work capitalised | 975 | 988 |
| 4. Other operating income | 2,240 | 2,324 |
| 5. Raw material and consumables used | $-317,168$ | $-395,220$ |
| 6. Employee benefit expense | $-26,928$ | $-24,806$ |
| 7. Other operating expenses | $-29,856$ | $-26,057$ |
| 8. Changes in the value of financial assets and liabilities | $-2,767$ | 2,164 |
| 9. Result from commodity forward contracts | $-2,002$ | 942 |
| 10. EBITDA | $-6,560$ | 48,776 |
| 11. Depreciation and amortisation | $-14,979$ | $-12,026$ |
| 12. Operating result (EBIT) | $-21,539$ | 36,750 |
| 13. Finance income | 328 | 148 |
| 14. Finance costs | $-3,387$ | $-985$ |
| 15. Finance result | $-3,059$ | $-837$ |
| 16. Result before tax | $-24,598$ | 35,913 |
| 17. Income tax expense | 1,680 | $-14,148$ |
| 18. Net result for the period | $-22,918$ | 21,765 |
| Result attributable to shareholders of the parent company | $-22,940$ | 21,802 |
| Result attributable to non-controlling interests | 22 | $-37$ |
| Basic earnings per share (EUR) | $-0.36$ | 0.34 |
| Diluted earnings per share (EUR) | $-0.36$ | 0.34 |
at September 30, 2024
| EUR (thousands) | 30.09.2024 | 30.06.2024 | |
|---|---|---|---|
| Assets | |||
| A. Non-current assets | |||
| I. | Intangible assets | 1,420 | 1,302 |
| II. | Property, plant and equipment | 725,545 | 728,193 |
| III. | Right-of-use assets under leasing arrangements | 31,291 | 27,802 |
| IV. | Financial assets | 1,540 | 1,540 |
| V. | Other assets | 30,006 | 34,120 |
| VI. | Deferred taxes | 1,569 | 1,009 |
| Total non-current assets | 791,371 | 793,966 | |
| B. Current assets | |||
| I. | Inventories | 268,502 | 244,872 |
| II. | Trade receivables | 86,308 | 119,014 |
| III. | Derivatives | 11,557 | 21,341 |
| IV. | Other current financial assets | 25,423 | 17,912 |
| V. | Current tax receivables | 38,560 | 26,089 |
| VI. | Other current assets | 43,104 | 31,375 |
| VII. | Cash and cash equivalents | 96,864 | 123,186 |
| Total current assets | 570,318 | 583,789 | |
| Total assets | 1,361,689 | 1,377,755 |
| Group key figures | Segment key figures | Business report and the Group's position | Consolidated profit and loss account | Consolidated balance sheet | Consolidated statement of cash flows | Financial calendar |
|---|---|---|---|---|---|---|
| EUR (thousands) | 30.09.2024 | 30.06.2024 | ||||
| Equity and liabilities | ||||||
| A. Equity | ||||||
| I. Share capital | 63,638 | 63,638 | ||||
| II. Capital reserve | 503,868 | 503,482 | ||||
| III. Retained earnings | 324,922 | 347,862 | ||||
| IV. Reserve for cash flow hedges | $-1,359$ | 2,245 | ||||
| V. Translation reserve | $-8,771$ | 8,448 | ||||
| Equity attributable to owners of the parent | 882,298 | 925,675 | ||||
| VI. Non-controlling interests | 2,564 | 2,541 | ||||
| Total equity | 884,862 | 928,216 | ||||
| B. Non-current liabilities | ||||||
| I. Borrowings | 152,072 | 152,080 | ||||
| II. Lease liabilities | 23,803 | 20,667 | ||||
| III. Non-current provisions | 187 | 187 | ||||
| IV. Investment grants | 31,906 | 33,745 | ||||
| V. Other non-current financial liabilities | 19,645 | 19,645 | ||||
| VI. Deferred tax liabilities | 2,769 | 8,142 | ||||
| Total non-current liabilities | 230,382 | 234,466 |
| Group key figures | Segment key figures | Business report and the Group's position | Consolidated profit and loss account | Consolidated balance sheet | Consolidated statement of cash flows | Financial calendar |
|---|---|---|---|---|---|---|
| EUR (thousands) | 30.09.2024 | 30.06.2024 | ||||
| C. Current liabilities | ||||||
| I. Borrowings | 32,253 | 13,437 | ||||
| II. Lease liabilities | 8,516 | 8,012 | ||||
| III. Trade payables | 132,362 | 126,394 | ||||
| IV. Derivatives | 9,709 | 9,517 | ||||
| V. Other current financial liabilities | 44,587 | 43,216 | ||||
| VI. Current tax payable | 2,277 | 2,796 | ||||
| VII. Current provisions | 1,068 | 293 | ||||
| VIII. Investment grants | 2,229 | 2,454 | ||||
| IX. Other current liabilities | 13,444 | 8,954 | ||||
| Total current liabilities | 246,445 | 215,073.00 | ||||
| Total equity and liabilities | 1,361,689 | 1,377,755 |
| EUR (thousands) | Q1 2024/2025 | Q1 2023/2024 |
|---|---|---|
| Net result for the period | $-22,918$ | 21,765 |
| Income tax expense | $-1,680$ | 14,148 |
| Interest result | 3,059 | 837 |
| Depreciation and amortisation | 14,979 | 12,026 |
| Non-cash expenses for share-based remuneration | 386 | 446 |
| Other non-cash income and expenses | $-1,932$ | 939 |
| Gain on disposal of property, plant and equipment | $-8$ | $-73$ |
| Release of investment grants | $-599$ | $-201$ |
| Non-cash changes in derivative financial instruments | 4,861 | $-71$ |
| Increase in inventories | $-23,629$ | $-3,599$ |
| Decrease (previous year: increase) in trade receivables | 32,706 | $-17,571$ |
| Increase (previous year: decrease) in other assets and other current financial assets | $-15,129$ | 11,537 |
| Increase (previous year: decrease) in provisions | 559 | $-27$ |
| Increase (previous year: decrease) in trade payables | 13,782 | $-4,090$ |
| Increase in other current financial and non-financial liabilities | 6,286 | 1,317 |
| Interest paid | $-1,774$ | $-808$ |
| Interest received | 328 | 148 |
| Income taxes paid | $-15,352$ | $-17,375$ |
| Cash flows from operating activities | $-6,075$ | 19,348 |
| Group key figures | Segment key figures | Business report and the Group's position | Consolidated profit and loss account | Consolidated balance sheet | Consolidated statement of cash flows | Financial calendar |
|---|---|---|---|---|---|---|
| EUR (thousands) | Q1 2024/2025 | Q1 2023/2024 | ||||
| Acquisition of intangible assets | $-193$ | $-209$ | ||||
| Acquisition of plant, property and equipment | $-33,126$ | $-50,116$ | ||||
| Proceeds from sale of property, plant and equipment | 10 | 395 | ||||
| Cash flows from investing activities | $-33,309$ | $-49,930$ | ||||
| Proceeds from borrowings | 29,998 | 39,766 | ||||
| Repayment of borrowings | $-12,500$ | $-56,500$ | ||||
| Repayment of lease liabilities | $-2,690$ | $-2,228$ | ||||
| Cash flows from financing activities | 14,808 | $-18,962$ | ||||
| Net change in cash funds | $-24,576$ | $-49,544$ | ||||
| Effects of exchange rate changes on changes in cash funds | $-1,746$ | 691 | ||||
| Cash funds at the beginning of the period | 123,186 | 170,306 | ||||
| Cash funds at the end of the period | 96,864 | 121,453 |
| November 12, 2024 | Quarterly statement for the period ended September 30, 2024 (Q) 2024/2025) |
|---|---|
| December 6, 2024 | Annual general meeting 12/2024 |
| February 12, 2025 | Half-year interim report for the period ended December 31, 2024 (H1 2024/2025) |
| May 13, 2025 | Quarterly statement for the period ended March 31, 2025 (Q3 2024/2025) |
| September 25, 2025 | Annual report 2024/2025 for the year ended June 30, 2025 (FY 2024/2025) Financial statement press and analysts' conference |
This quarterly statement includes various statements concerning forecasts, expectations and information that relate to the future development of the Verbio Group and Verbio SE. These statements are based on assumptions and estimates and may be associated with known and unknown risks and uncertainties. Actual developments and results, as well as the financial and asset position, may therefore differ significantly from the expressed expectations and assumptions. Such differences may be due, among other things, to market fluctuations, changes in worldwide market prices for raw materials as well as financial markets and exchange rates, changes in national and international laws and regulations, or fundamental changes in the economic and political climate. Verbio does not intend to and does not undertake an obligation to update or revise any forward-looking statements to adapt them to events or developments after the publication of this quarterly statement.
This quarterly statement is published in German (original version) and in English (non-binding translation). It is available for download in both languages on the internet at https://www.verbio.de.
Further information material about Verbio SE is available on request.
Telephone: +49 341308530-0
Email: [email protected]
Verbio SE
Verbio SE
Ritterstraße 23 (Oelßner's Hof)
04109 Leipzig
Telephone: +49 341 308530-0
www.verbio.de
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