EQS-News: Verbio SE: Verbio announces results for Q3 2024/25

Verbio announces results for Q3 2024/25

• Q3 2024/25 EBITDA of EUR 8.2 million, up on the same quarter in the previous year
• Biodiesel is key driver of earnings
• Progress in ramping up the plant in Nevada: stable Ethanol and biomethane production in the USA

Leipzig, May 13, 2025 – Group revenues fell by 13 percent in the first nine months of the current financial year, totalling EUR 1,146.5 million compared to EUR 1,318.1 million in the same period in the previous year. Earnings before interest, taxes and depreciation and amortisation (EBITDA) for the nine-month period were EUR 22.4 million (9 M 2023/24: EUR 82.1 million). This was due to the weak first quarter of 2024/25 compared to the strong first quarter of 2023/24.

Net financial debt at March 31, 2025 totalled EUR 154.1 million (June 30, 2024: EUR 32.9 million), and the equity ratio was 63.1 percent (June 30, 2024: 67.4 percent). The increase in net financial debt is due to the negative free cash flow in the reporting period. This largely reflects Verbio’s investments in strategic projects, although there has been a slowdown in investment activity. Verbio invested EUR 91.5 million in property, plant and equipment in the first nine months of the current year, compared to EUR 129.2 million during the same period in the previous year. Investments are being actively scaled back, and a further significant decline is set to follow.

Q3 2024/25: Biodiesel is key driver of earnings

In the third quarter of the financial year 2024/25 the Verbio Group generated sales revenues of EUR 394.9 million (Q3 2023/24: EUR 409.2 million) and an EBITDA of EUR 8.2 million (Q3 2023/24: EUR 7.3 million), following EUR 20.8 million in the preceding quarter.

The performance of the Biodiesel segment in the third quarter of 2024/25 particularly reflects production volumes in Welland, Canada, which were reduced as planned due to the difficult margin environment resulting from regulatory changes in the USA. Purchase and sales contracts that guarantee a gross margin have been in place again since March 2025. Total sales in the segment also fell slightly from EUR 217.8 million to EUR 210.3 million in the third quarter because of the decrease in production volumes in Canada. Nevertheless, Verbio was able to increase EBITDA in the segment, reaching EUR 16.8 million following EUR 11.4 million in the third quarter of 2023/24.

In the Bioethanol/Biomethane segment, Verbio set new production records for bioethanol and biomethane in the third quarter of 2024/25, underlining the segment’s increased performance. Despite increased production and sales volumes, however, revenue fell to EUR 181.5 million in Q3 2024/25, after EUR 188.1 million in Q3 2023/24. The decrease in the segment EBITDA of EUR 8.8 million compared to the same quarter in the previous year (EBITDA 2023/24: EUR –5.2 million) is due in part to the biomethane and greenhouse gas reduction quota (GHG quota) business, as well as a negative effect from the absence of a non-recurring positive contribution to earnings from commodity futures and changes in the value of financial assets in the same quarter of the previous year. The start-up costs of Verbio’s growth projects remain the main driver of the negative result in the segment. Over the course of the year Verbio was able to increase the EBITDA result at Group level, with the effect that a total EBITDA of EUR –14.0 million is reported in the third quarter.

In the Other segment, Verbio generated revenues of EUR 8.8 million from transport and logistics services in the third quarter of 2024/25 (Q3 2023/24: EUR 8.2 million). Together with the expenses and income from the Trading division, the reported segment EBITDA was EUR 5.4 million (Q3 2023/24: EUR 1.1 million, excluding the Trading division). The result from commodity futures transactions totalled EUR 10.2 million.

Outlook: Focus on stable ramp-up in Nevada and operational efficiency

An EBITDA result in the mid-double-digit million range is expected for the current financial year 2024/25. With the publication of the results for the third quarter, the Management Board firmed up its guidance to indicate that EBITDA was likely to be at the lower end of the given range. The expectation for net financial debt at the end of the financial year remains unchanged at a maximum of EUR 190 million.

The ramp-up of the Nevada facility is a key milestone in Verbio’s growth and diversification strategy. Following the technical challenges previously reported, at times in recent weeks the plant has reached new peak values for production and efficiency. The progress achieved confirms the efficiency of the technology. Production is now being ramped up in stages, with a focus on process stability and a reliable expansion of production volumes; Verbio expects continuous, although not yet fully utilised, production for summer 2025.

At the same time, Verbio is increasingly focussing on projects with a direct value contribution. The prioritisation of investments already communicated and measures to optimise the organisational and cost structure, including the necessary job cuts, will strengthen the Group’s competitiveness. The objective is to make Verbio more resilient in the challenging market environment, and to optimise the investments made in order to improve the operating cash flow. The expansion of the plant for the production of speciality chemicals is continuing apace. With the successful installation of further distillation columns, the largest part of the steel and concrete superstructure of the production building was recently completed.

In the context of current regulatory policy developments, Verbio expects further stabilisation in the GHG quota and biofuel market in Germany. Verbio sees the plans announced in the coalition agreement – including an increase in the GHG quota, more consistent fraud prevention and more effective import controls – as important steps towards fair market conditions and a stronger contribution of sustainable biofuels to local energy supply. “Decisive political action is now needed to end the unfair and competition-distorting, sometimes fraudulent, market disruptions for the industry,” said Claus Sauter, CEO of Verbio SE. At the same time, the trade policy environment remains in flux, particularly with regard to possible US tariffs. Verbio does not see itself directly affected by the measures discussed so far, but is monitoring further developments closely.

Verbio key figures

(EUR millions)	9M 23/24	9M 24/25	yoy	Q3 23/24	Q3 24/25	yoy
Production
Biodiesel (tonnes)	483,118	459,104	-5.0%	161,274	133.026	-17.5%
Bioethanol (tonnes)	378,544	420,015	11.0%	129,687	145.667	12.3%
Biomethane (MWh)	800,136	865,640	8.1%	281,004	305.649	8.8%
Revenue	1,318.1	1,146.5	-13.0%	409.2	394.9	-3.5%
Segment Biodiesel	790.7	649.8	-17.8%	217.8	210.3	-3.4%
Segment Bioethanol	516.6	486.0	-5.9%	188.1	181.5	-3.5%
EBITDA	82.1	22.4	-72.7%	7.3	8.2	12.7%
EBITDA margin (percent)	6.2%	2.0%	-4.3pp	1.8%	2.1%	0.3pp
Segment Biodiesel	85.6	68.8	-19.6%	11.4	16.8	47.3%
EBITDA margin (percent)	10.8%	10.6%	-0.2pp	5.2%	8.0%	2.7pp
Segment Bioethanol	-7.4	-50.9	n.a.	-5.2	-14.0	n.a.
EBITDA margin (percent)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.

 

(EUR millions)	30.06.2024	31.03.2025	+/–
Net debt	32.9	154.1	368.4%
Equity ratio (percent)	67.4%	63.1%	-4.3pp

Detailed information on business developments in the first three months of the 2024/25 year is provided in the quarterly statement for the period ended March 31, 2025, which can be viewed from 8.30 a.m. CEST on Verbio’s website at www.verbio.de/financialreports.

About Verbio

At Verbio we make more from biomass. In our biorefineries we convert raw materials and residues from regional agriculture into climate-friendly fuels, green energy and renewable products for chemicals and agriculture. In addition, we create high-value components from sustainably-generated biomass for the animal feed and food industries. We employ approximately 1,500 people at our locations in Europe, Asia and North America. Our motto “Pioneering green solutions” sums up what drives our international team; with innovative technologies and green solutions, we are shaping the social and industrial transformation toward climate neutrality and ecological production. We contribute to preserving natural resources and to leaving the Earth in a habitable state for the generations that will follow us. In doing so we combine global growth with economic success, social responsibility and security of supply. Verbio shares (ISIN DE000A0JL9W6/WKN A0JL9W) have been listed in the prime standard segment of the Frankfurt Stock Exchange since October 2006. Our headquarters are in Zörbig, Germany.

 

Important notice

This publication contains forward-looking statements based on assumptions and estimates by the management of Verbio SE. Although the Company’s management is of the opinion that these assumptions and estimates are realistic, actual future developments and actual future results may differ significantly from these assumptions and estimates due to a variety of factors. For example, these factors can include changes to the overall economic climate, changes to the legal and regulatory framework in Germany and the EU, and changes in the industry. Verbio can give no guarantees and accepts no liability as to whether future developments and the results actually achieved in future will match the assumptions and estimates made in this publication.

 

Contact:
Verbio SE
Ritterstraße 23 (Oelßner's Hof)
04109 Leipzig

Alina Köhler (IR)
Ulrike Kurze (PR)
+49(0)341/308530-299
E-Mail: ir@verbio.de/pr@verbio.de