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VERBIO Vereinigte BioEnergie AG

Quarterly Report Nov 10, 2022

464_10-q_2022-11-10_5a12ee4b-ac70-45fb-9b2a-9e1dc6624160.pdf

Quarterly Report

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Quarterly statement for the period ended September 30, 2022 (Q1 2022/2023)

Group key figures

[in EUR millions]

Group key figures

Segment key figures

Business report and the Group's position

Consolidated profit and loss account

Consolidated balance sheet

Consolidated cash flow statement

Financial calendar

Results of operations Q1 2022/2023 Q1 2021/2022 Q2 2021/2022 Q3 2021/2022 Q4 2021/2022 2021/2022
Sales 592.2 350.4 458.7 428.4 575.0 1,812.5
EBITDA 121.4 40.2 147.0 127.7 188.4 503.3
EBITDA margin (percent) 20.5 11.5 32.0 29.8 32.8 27.8
EBIT 111.9 33.1 139.3 119.1 170.5 462.0
EBT 112.0 32.8 139.1 151.9 137.3 461.1
Net result for the period 76.9 22.6 97.7 79.6 115.9 315.8
Earnings per share (basic) (EUR) 1.21 0.36 1.55 1.26 1.82 4.99
Operational statistics Q1 2022/2023 Q1 2021/2022 Q2 2021/2022 Q3 2021/2022 Q4 2021/2022 2021/2022
Production (tonnes) 216,514 209,066 223,347 206,672 199,047 838,132
Production (MWh) 261,020 199,877 214,841 237,183 233,058 884,959
Utilisation Biodiesel/
Bioethanol (percent) 1)
90.2 90.9 97.1 89.9 86.5 91.1
Utilisation Biomethane (percent) 1) 80.3 88.8 95.5 105.4 103.6 98.3
Investments in property, plant and equipment 42.9 19.3 23.4 38.2 41.0 121.4
Number of employees 2) 1,091 892 922 958 978 978
Net asset position 30.09.2022 30.09.2021 31.12.2021 31.03.2022 30.06.2022 30.06.2022
Net financial assets 261.9 111.5 140.5 147.5 284.1 284.1
Equity and liabilities 889.3 541.7 635.1 724.0 818.5 818.5
Equity ratio (percent) 72.0 71.8 71.3 72.5 72.5 72.5
Balance sheet total 1,234.7 754.8 890.5 999.3 1,128.6 1,128.6
Financial position Q1 2022/2023 Q1 2021/2022 Q2 2021/2022 Q3 2021/2022 Q4 2021/2022 2021/2022
Operating cash flow –44.2 18.5 76.9 64.6 165.0 325
Operating cash flow per share (EUR) –0.70 0.29 1.22 1.03 2.62 5.16
Cash and cash equivalents 3) 291.9 141.5 170.5 177.5 314.1 314.1

1) From July 1, 2022 the annual production capacity of the production plants is as follows:

biodiesel: 660,000 tonnes (unchanged); bioethanol: increased to 300,000; biomethane: increased to 1,300 GWh.

2) At the balance sheet date.

3) At the balance sheet date, includes amounts held in segregated accounts.

Segment key figures

[in EUR millions]

Group key figures

Segment key figures
--------------------- -- --

Business report and the Group's position

Consolidated profit and loss account

Consolidated balance sheet

Consolidated cash flow statement

Financial calendar

Biodiesel Q1 2022/2023 Q1 2021/2022 Q2 2021/2022 Q3 2021/2022 Q4 2021/2022 2021/2022
Sales 435.4 261.6 324.1 292.0 392.0 1,269.7
EBITDA 91.5 22.2 96.1 75.3 104.8 298.4
EBIT 88.9 19.6 93.6 72.9 86.6 272.7
Production (tonnes) 145,124 150,007 155,185 138,988 129,851 574,031
Utilisation (percent) 1) 88.0 90.9 94.1 84.2 78.7 87.0
Number of employees 2) 219 224 219 220 216 216
Bioethanol (incl. biomethane) Q1 2022/2023 Q1 2021/2022 Q2 2021/2022 Q3 2021/2022 Q4 2021/2022 2021/2022
Sales 152.8 86.0 131.7 133.7 179.9 531.3
EBITDA 28.9 17.1 50.2 52.0 83.0 202.3
EBIT 22.6 13.0 45.6 46.4 83.9 188.9
Production (tonnes) 71,390 59,059 68,161 67,684 69,196 264,101
Production (MWh) 261,020 199,877 214,841 237,183 233,058 884,959
Utilisation Bioethanol (percent) 1) 95.2 90.9 104.9 104.1 93.9 101.6
Utilisation Biomethane (percent) 1) 80.3 88.8 95.5 105.4 89.1 98.3
Number of employees 2) 591 456 477 498 401 514
Other Q1 2022/2023 Q1 2021/2022 Q2 2021/2022 Q3 2021/2022 Q4 2021/2022 2021/2022
Sales 7.5 5.4 4.7 5.3 6.0 21.4
EBIT 0.4 0.5 0.1 –0.2 0.0 0.4

1) From July 1, 2022 the annual production capacity of the production plants is as follows:

biodiesel: 660,000 tonnes (unchanged); bioethanol: increased to 300,000; biomethane: increased to 1,300 GWh.

2) At the balance sheet date.

Group key figures

Segment key figures

Business report and the Group's position

Consolidated profit and loss account

Consolidated balance sheet

Consolidated cash flow statement

Financial calendar

Business report and the Group's position

VERBIO AG reports a significant increase in earnings for the first three months of the financial year 2022/2023 compared to the same period in the previous year.

Group revenues increased by 69 percent to EUR 592.2 million compared to the previous year (Q1 2021/2022: EUR 350.4 million).

Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first three months of the financial year 2022/2023 amounted to EUR 121.4 million, above the level in the comparative period in the previous year (Q1 2021/2022: EUR 40.2 million). The Group result before interest and taxes (EBIT) totalled EUR 111.9 million (Q1 2021/2022: EUR 33.1 million). The net result for the period amounted to EUR 76.9 million (Q1 2021/2022: EUR 22.6 million). Based on the result for the period, earnings per share are EUR 1.21 (Q1 2021/2022: EUR 0.36).

Net assets and financial position

Cash flows

Cash flows from operating activities in the first three months of the financial year 2022/2023 amounted to EUR –44.2 million (Q1 2021/2022: EUR 18.5 million). With higher net profits for the period (EUR 76.9 million; Q1 2021/2022: EUR 22.6 million), the fall in cash flows from operating activities compared to the corresponding quarter in the previous year was due to the higher increase in inventories in the period (Q1 2022/2023: an increase of EUR 28.1 million; Q1 2021/2022: an increase of EUR 7.4 million), and in addition to cash and cash equivalents of EUR 113.9 million tied up in trading activities in other financial and non-financial assets (Q1 2021/2022: EUR 8.2 million).

Driven by investments made in property, plant and equipment, total cash outflows in the first three months of 2022/2023 amounted to EUR 39.6 million (Q1 2021/2022: EUR 20.2 million), which almost corresponds to the total of cash flows from investing activities.

The cash flows from financing activities in the current reporting period wholly comprised repayments of lease liabilities of EUR 1.6 million (Q1 2021/2022: EUR 1.6 million).

As a result of the above, cash and cash equivalents fell by a total of EUR 84.7 million in the period July 1, 2022 to September 30, 2022. Cash and cash equivalents reported in the balance sheet at September 30, 2022 amounted to EUR 214.9 million.

Net cash

The Group's bank and loan finance arrangements are offset by cash and cash equivalents as well as additional cash held in segregated accounts totalling EUR 291.9 million, so that the reported net cash balance at September 30, 2022 amounted to EUR 261.9 million (June 30, 2022: EUR 284.1 million).

Group key figures

Segment key figures

Business report and the Group's position

Consolidated profit and loss account

Consolidated balance sheet

Consolidated cash flow statement

Financial calendar

Development of the Biodiesel, Bioethanol and Other segments

The primary driver of the improvement in results in the first quarter of the financial year 2022/2023 compared to the same period in the previous year was the significantly higher margins achieved in the Biodiesel segment in the first quarter of 2022/2023. It was possible to maintain the trend set in the final quarter of the previous financial year. On the other hand, the margins in the Bioethanol segment were markedly below the levels of the first quarter of the previous year, with raw material costs largely unchanged. Capacity utilisation of the production plants in both the Biodiesel and Bioethanol segments was good. The production volume of biodiesel and bioethanol in the period from July 1, 2022 to September 30, 2022 totalled 216,514 tonnes, compared with 209,066 tonnes in the same period in the previous year. In addition, 261.0 GWh of biomethane were produced in the first three months of the financial year 2022/2023 (Q1 2021/2022: 199.9 GWh). Here, new capacity was available at the Group's new plants in the USA and India. These have not yet reached their full capacity utilisation, with the result that the capacity utilisation of the biomethane plants in the first three months of the financial year 2022/2023 is below the level reported for the previous year.

Outlook, opportunity and risk report

Outlook report

VERBIO is making no changes to the results forecasts provided in the 2021/2022 annual report published on September 27, 2022. Based on current sales volumes and raw material prices as well as the planned production capacity usage, the VERBIO Vereinigte BioEnergie AG Management Board expects to achieve an EBITDA for the financial year 2022/2023 of around EUR 300 million.

The Group plans significant amounts of investments to expand production capacity and in product diversification and internationalisation in the current financial year. This will be financed using the free cash reserves generated in previous financial periods and cash flows from current operations. Accordingly, the Management Board expects that the Group will have net financial assets of approximately EUR 30 million at the end of the financial year 2022/2023. This forecast is made subject to the proviso that the continued course of the Russian aggression in Ukraine and its consequences do not have a significant further negative effect on the market for biofuels and, in particular, on the procurement of raw materials and energy.

Risk and opportunity report

There have been no changes to the opportunities and risks presented in the 2021/2022 annual report. Further, there have been no changes in the risks and opportunities profile of the VERBIO Group during the reporting period. 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.

Group key figures

Segment key figures

Business report and the Group's position

Consolidated profit and loss account

Consolidated balance sheet

Consolidated cash flow statement

Financial calendar

Consolidated profit and loss account

for the period from July 1, 2022 to September 30, 2022

EUR (thousands) Q1 2022/2023 Q1 2021/2022
1. Sales revenue (including energy taxes collected) 592,384 350,609
less: energy taxes –219 –181
Sales revenue 592,165 350,428
2. Change in unfinished and finished goods 14,320 585
3. Own work capitalised 876 610
4. Other operating income 2,911 1,961
5. Cost of materials –462,359 –258,971
6. Personnel expenses –18,472 –15,253
7. Amortisation and impairment of non-current assets –9,514 –7,137
8. Other operating expenses –17,221 –11,851
9. Changes in the value of financial assets and liabilities 7,758 1,993
10. Result from commodity forward contracts 1,431 –29,313
11. Operating result 111,895 33,052
12. Interest income 267 36
13. Interest expense –175 –279
14. Financial result 92 –243
15. Result before tax 111,987 32,809
16. Income taxes –35,082 –10,171
17. Net result for the period 76,905 22,638
Result attributable to shareholders of the parent company 76,878 22,545
Result attributable to non-controlling interests 27 93
Earnings per share (basic) in euros 1.21 0.36

Quarterly statement
for the period
ended September 30, 2022

Group key figures

Segment key figures

Business report and the Group's position

Consolidated profit and loss account

Consolidated balance sheet

Consolidated cash flow statement

Financial calendar

Consolidated balance sheet

at September 30, 2022

EUR (thousands) 30.09.2022 30.06.2022
Assets
A.
Non-current assets
I.
Intangible assets
849 846
II.
Property, plant and equipment
436,950 391,523
III.
Right-of-use assets under leasing arrangements
21,403 18,950
IV.
Financial assets
3,129 2,397
V.
Other assets
61,554 57,762
VI.
Deferred taxes
4,965 807
Total non-current assets 528,850 472,285
B.
Current assets
I.
Inventories
197,393 169,335
II.
Trade receivables
128,089 112,234
III.
Derivatives
17,464 40,975
IV.
Other current financial assets
83,819 20,828
V.
Tax refunds
224 84
VI.
Other assets
64,044 13,266
VII.
Cash and cash equivalents
214,864 299,612
Total current assets 705,897 656,334
Balance sheet total 1,234,747 1,128,619

Group key figures

Segment key figures

Business report and the Group's position

Consolidated profit and loss account

Consolidated balance sheet

Consolidated cash flow statement

Financial calendar

EUR (thousands) 30.09.2022 30.06.2022
Equity and liabilities
A.
Equity
I.
Share capital
63,398 63,398
II.
Additional paid-in capital
499,789 499,393
III.
Retained earnings
298,139 221,261
IV.
Reserve for cash flow hedges
–9,439 13,438
V.
Reserve for translation adjustments
35,191 18,741
Total equity attributable to owners of the parent 887,078 816,231
VI.
Non-controlling interests
2,252 2,224
Total equity 889,330 818,455
B.
Non-current liabilities
I.
Bank loans and other loans
30,000 30,000
II.
Lease liabilities
16,088 14,419
III.
Provisions
131 131
IV.
Deferred investment grants and subsidies
1,148 1,342
V.
Other non-current financial liabilities
224 224
VI.
Deferred taxes
286 11,912
Total non-current liabilities 47,877 58,028
C.
Current liabilities
I.
Lease liabilities
5,793 4,967
II.
Trade payables
109,767 95,371
III.
Derivatives
22,939 15,867
IV.
Other current financial liabilities
20,525 14,304
V.
Tax liabilities
117,121 89,156
VI.
Provisions
4,151 3,655
VII.
Deferred investment grants and subsidies
830 837
VIII.
Other current liabilities
16,414 27,979
Total current liabilities 297,540 252,136
Balance sheet total 1,234,747 1,128,619

Group key figures

Segment key figures

Business report and the Group's position

Consolidated profit and loss account

Consolidated balance sheet

Consolidated cash flow statement

Financial calendar

Consolidated cash flow statement

for the period from July 1, 2022 to September 30, 2022

EUR (thousands) Q1 2022/2023 Q1 2021/2022
Net result for the period 76,905 22,638
Income taxes 35,082 10,171
Interest result –92 243
Depreciation and amortisation 9,514 7,137
Non-cash expenses from share-based remuneration 396 359
Other non-cash income and expenses 587 176
Gains on disposal of property, plant and equipment and disposal of investment grants –46 –82
Release of deferred investment grants and subsidies –202 –213
Non-cash changes in derivative financial instruments –3,165 3,207
Increase in inventories –28,059 –7,405
Increase in trade receivables –15,855 –24,836
Increase in other assets and other current financial assets –113,908 –8,210
Increase (previous year: decrease) in provisions 425 –4,148
Increase in trade payables 11,380 14,946
Decrease (previous year: increase) in other current financial and non-financial liabilities –5,968 11,505
Interest paid –109 –225
Interest received 267 37
Income taxes paid –11,353 –6,759
Cash flows from operating activities –44,201 18,541
Quarterly statement EUR (thousands) Q1 2022/2023 Q1 2021/2022
for the period Acquisition of intangible assets –49 –51
ended September 30, 2022 Acquisition of property, plant and equipment –39,619 –20,243
Group key figures Proceeds from disposal of property, plant and equipment 40 81
Segment key figures Cash outflows for investments in associated companies –733 0
Cash flows from investing activities –40,361 –20,213
Business report and
the Group's position
Payments for the redemption of lease liabilities –1,569 –1,589
Cash flows from financing activities –1,569 –1,589
Consolidated profit
and loss account
Cash-effective change in cash funds –86,131 –3,261
Change in cash funds due to effects of exchange rates 1,383 468
Consolidated balance sheet Cash funds at beginning of year 299,612 105,025
Consolidated cash flow statement Cash funds at end of year 214,864 102,232

Financial calendar

Financial calendar

Quarterly statement
for the period
ended September 30, 2022
Financial calendar
Group key figures
Segment key figures February 3, 2023 Virtual annual general meeting 2023
Business report and
the Group's position February 9, 2023 Publication of the half-yearly interim report 2022/2023 (July 2022 to December 2022)
Consolidated profit Conference call
and loss account May 11, 2023 Publication of the quarterly statement for the period ended March 31, 2023 (July 2022 to March 2023)
Conference call
Consolidated balance sheet September 26, 2023 Publication of the annual report 2022/2023
Analysts' and annual financial press conference
Consolidated cash flow statement

Imprint

Publisher/editing

VERBIO Vereinigte BioEnergie AG

Contact

VERBIO Vereinigte BioEnergie AG Ritterstraße 23 (Oelßner's Hof) 04109 Leipzig Telephone: +49 341 308530-0 www.verbio.de

Forward-looking statements

This quarterly statement includes various statements concerning forecasts, expectations and information that relate to the future development of the VERBIO Group and VERBIO Vereinigte BioEnergie AG. 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 situation, may therefore differ substantially from the expectations and assumptions stated. 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 directives, 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 at http://www.verbio.de in both languages.

Further information about VERBIO Vereinigte BioEnergie AG is available on request. Telephone: +49 341 308530-0 E-Mail: [email protected]

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