Verbio (VBK) Q1 24/25 earnings summary

Executive summary

• Q1 2024/25 saw a sharp EBITDA decline to -€6.6 million from €48.8 million year-over-year, mainly due to challenging market conditions, lower sales prices, and weaker European biofuels demand, despite higher production volumes in some segments.

• Revenue dropped to €358.0 million from €488.1 million, with the net result at €-22.9 million and EPS at €-0.36.

• Net debt increased to €67.4 million as investments continued in key projects in the US and Germany.

• Biodiesel remained the main profit driver, offsetting weaker bioethanol and biomethane performance.

• Cash and cash equivalents decreased by €24.6 million, ending at €96.9 million.

Financial highlights

• Group EBITDA fell to -€6.6 million in Q1 2024/25, with the margin turning negative at -1.8% versus 10.0% a year ago.

• Revenue declined 27% year-over-year to €358.0 million.

• Biodiesel segment revenue dropped to €197.1 million from €322.8 million, with EBITDA at €15.4 million.

• Bioethanol/Biomethane revenue was stable at €157.5 million, but EBITDA declined to €-21.5 million.

• Net debt increased to €67.4 million, mainly due to ongoing investments.

Outlook and guidance

• Full-year EBITDA guidance is confirmed at €120 million to €160 million, with net debt not to exceed €190 million.

• Q2 is expected to improve due to appreciating ethanol prices, a stronger dollar, and positive FX/commodity contract effects.

• Regulatory changes in Germany are anticipated to boost GHG quota prices and demand in 2025/26.

• Capacity utilization in biodiesel, bioethanol, and biomethane is expected to improve year-over-year.

• Net debt is forecast to rise to a maximum of €190 million due to planned investments.