VERBIO Vereinigte BioEnergie AG

Earnings Release • Aug 14, 2008

News Details

Corporate | 14 August 2008 21:58

VERBIO Vereinigte BioEnergie AG:Growth in cash flow and earnings in first half of 2008

VERBIO Vereinigte BioEnergie AG / Half Year Results

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Study proves VERBIO biofuels reduce CO2 emissions by over 80 per cent

Leipzig/Zörbig, 14 August 2008: VERBIO Vereinigte BioEnergie AG, one of the
leading producers and suppliers of biofuels, achieved significant
year-on-year growth in sales, as well as cash-flow and earnings, in the
first six months of its fiscal year 2008. Sales revenue was up 46.6 percent
to EUR 298.8 million as of 30 June 2008. Gross margin improved from EUR
29.6 million to EUR 37.6 million. The company’s operating result
(EBIT)before commodity futures rose to EUR 10.2 million, compared with EUR
1.1 million last year.

VERBIO had cash and cash equivalents of EUR 73.8 million as of 30 June
2008, representing an increase of EUR 16.7 million compared with EUR 57.1
million as of 31 December 2007.

VERBIO bucks market trend with double-digit growth
With growth in sales volume of 10 percent, VERBIO was able to escape the
general fall in demand in the biodiesel sector and expand its market share.
Sales of bioethanol also made encouraging progress compared with the two
preceding quarters.

Growing sales and contract-related pressure on margins
The growth in sales of Biodiesel is also reflected in the company’s
revenues for the first six months of 2008, which improved by EUR 75.4
million to EUR 208.5 million (1st half-year 2007: EUR 133.1 million). The
operating result (EBIT) before commodity futures totalled EUR 2.2 million,
due to contractual obligations, compared with EUR 3.8 million as of 30 June
2007. The operating result (EBIT) amounted to a loss of EUR 2.2 million
after consideration of forward commodity contracts. These will be offset by
income from sales revenue in the coming quarters.

Improved sales volume and earnings in the Bioethanol segment
With revenue of EUR 76.4 million, sales in the Bioethanol segment were up
almost 33 percent on the prior-year figure of EUR 57.5 million. Key factors
for the rise in sales included the relaunching of production at the
Schwedt/Oder facility in May 2008, measures implemented by the Management
Board and sales of grain. The improvement in gross margin resulted mainly
from the raw material mixture used (largely sugar or sugar-based raw
materials and lower-priced grain). The operating result (EBIT) before
commodity futures in the Bioethanol segment improved from EUR -5.9 million
last year to EUR 7.0 million. The result is just as little as the first
quarters result to be carried forward.

Independent study proves high reduction in CO2 with VERBIO biofuels
Generating energy from renewable resources is an important part of the
energy mix of the future. A study conduced by Institut für Energie- und
Umweltforschung Heidelberg GmbH (IFEU) proves that VERBIO biofuels reduce
CO2 emissions by more than 80 per cent. This means that using VERBIO
biofuels cuts CO2 emissions by 80 percent compared with fossil fuels.
VERBIO thus already meets the criteria for second generation of biofuels
and is setting the standard. IFEU is a non-profit ecological research body,
which played a major role in drafting Germany’s Sustainability Ordinance.

Outlook: market share growth
VERBIO aims to strengthen its position as a reliable and financially strong
supplier and partner. Both the consolidation of the biodiesel market and
the company’s positioning as a biofuels producer and supplier are expected
to lead to more stable income and cash flows in the medium term.

In the Biodiesel segment, the previous year’s high capacity utilisation
will be exceeded. VERBIO expects full utilisation of its Bioethanol
facility in Schwedt/Oder by the end of the year.

Contact

VERBIO Vereinigte BioEnergie AG
Anna-Maria Schneider (Investor Relations)
Sandra Haacker (Public Relations)
Augustusplatz 9
04109 Leipzig

Phone: +49 (0) 341 30 85 30 90
Fax: +49 (0) 341 30 85 30 98
Email: ir@verbio.de
Email: pr@verbio.de

Information on VERBIO Vereinigte BioEnergie AG
The VERBIO Group is one of the leading producers and suppliers of biofuels
and also the only industrial-scale producer of biodiesel and bioethanol in
Europe. Nominal capacity currently amounts to around 450,000 tons of
biodiesel and 300,000 tons of bioethanol per year. The company has
developed its own processes and innovative technologies for the production
of biodiesel and bioethanol. It supplies its products directly to European
mineral oil corporations, mineral oil traders, independent gas stations and
haulage companies. VERBIO AG also markets high-quality pharmaglycerin for
the consumer goods and cosmetic industries (glycerin is a by-product of
biodiesel production). Within the Group, VERBIO AG acts as the management
holding company. The Group’s operating business is run by its subsidiaries:
VERBIO Diesel Bitterfeld GmbH & Co. KG, VERBIO Diesel Schwedt GmbH & Co.
KG, VERBIO Ethanol Zörbig GmbH & Co. KG, VERBIO Ethanol Schwedt GmbH & Co.
KG and VERBIO STS AG.

Important Note
This press release contains forward-looking statements, which are based on
assumptions and estimates of the company management of VERBIO Vereinigte
BioEnergie AG. Even though the company management believes that these
assumptions and estimates are correct, the actual future development and
actual future results can deviate substantially from these assumptions and
estimates due to many factors. For example, these factors can include
alteration of the economic situation, legal and regulatory constraints in
Germany and the EU, and changes in the industry. VERBIO assumes no
liability and provides no warranty that future developments and actual
future results will agree with the assumptions and estimates expressed in
this press release.
14.08.2008 Financial News transmitted by DGAP

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Language: English
Issuer: VERBIO Vereinigte BioEnergie AG
Augustusplatz 9
04109 Leipzig
Deutschland
Phone: +49 (0)341 30 85 30 90
Fax: +49 (0)341 30 85 30 98
E-mail: ir@verbio.de
Internet: www.verbio.de
ISIN: DE000A0JL9W6
WKN: A0JL9W
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, Düsseldorf, München

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