PRESS RELEASES
BIOPETROL shows strong growth in sales and profits
- Sales up approx. 46 %
- Group profits up 78 %
NB: Please note the disclaimer at the end of this press release
27 March 2007. BIOPETROL INDUSTRIES AG achieved a strong growth in sales and profits in the financial year 2006 (1.1. to 31.12.). Group sales, adjusted for the mineral oil tax, increased by 46% to €127.6 million (previous year: €87.1 million); gross profit increased by 31% to €13.7 million (€10.4 million); the gross margin was 10.7%. The operating result grew by 24% to €7.2 million (€5.8 million) and net group profits rose by 78% to €5.7 million (€3.2 million).
“In 2006 we extended our position in the biodiesel market further, increased the capacity as scheduled and prepared the company structure for our future growth in Europe,” said Klaus-Ulrich Henschel, Chief Executive Officer of BIOPETROL INDUSTRIES AG. In December, after only eleven months of construction, the BIOPETROL Group opened a new biodiesel facility in Rostock, increasing the Group's total capacity to 350,000 tonnes of biodiesel and 30,000 tonnes of pharmaceutical glycerine per year.
Distribution of sales
The Group's customer structure was further diversified in 2006: 35% of turnover was made with the mineral oil industry, 28% with large fleet operators and 38% with mineral oil traders and resellers. Biodiesel carrying the quality standard EN 14214 makes up 93% of the company's sales, pharmaceutical glycerine and the trade with raw materials contribute 5% and 2% to sales respectively.
Growth in fourth quarter
Sales in the fourth quarter of 2006 of €30.5 million showed a slight increase over the previous year (€29.9 million). The gross margin rose to 17.0%, a significant improvement on the previous year's margin (12.2%) and the previous quarter (9.6%), despite rising costs of raw materials. This was mainly due to implementation of successful measures towards sustainable optimisation of the production process and internal procedures. In the fourth quarter, the operating result rose to €3.6 million (€1.8 million) despite high start-up costs for the new facility in Rostock. Net group profits after taxes rose from €0.9 million to €3.0 million. The net margin of 9.8% (previous year: 3.1%) demonstrates the success of BIOPETROL INDUSTRIES AG and its superior business model in an increasingly difficult market.
High positive operative cash flow - solid balance sheet
The operative cash flow rose in 2006 to approximately €9 million (previous year: €-0.6 million). The total balance sheet increased due to investments and a higher volume of business to €87.4 million (Previous year: €71.3 million). The equity ratio was 78.8% (previous year: 88.6%). Investments in the financial year amounted to approx. €40.7 million (€3.6 million). At year's end, cash and cash equivalents amounted to €4.4 million (€35.1 million). BIOPETROL took in an additional €75 million in February 2007 by issuing convertible bonds to finance the planned investment in Rotterdam.
“From the end of 2007, we will be in a position to produce approximately 750,000 tonnes of biodiesel and 90,000 tonnes of pharmaceutical glycerine per year. With our large, efficient facilities in first-class locations near to the mineral oil industry, and with excellent connections to pipelines, deep-water ports, railways and the European motorway network, our market position is strong and we can reliably serve new, attractive markets,” said CEO Klaus Henschel.
Outlook:
The BIOPETROL Group will continue its internationalisation strategy in sourcing and sales and in building new capacities. The capacity increases in Rotterdam will enable BIOPETROL to move into new markets and reduce its dependency on the German market.
The comprehensive Annual Report 2006 is published in German and English on the company's homepage (www.biopetrol-ind.com).
The Company:
BIOPETROL INDUSTRIES AG, registered in Zug (Switzerland), and its German and Swiss subsidiaries, produce and trade in biodiesel and pharmaceutical glycerine of the highest quality. Its customers include mineral oil companies and traders, large fleet operators, public transport, agriculture and the construction industry. It also supplies the pharmaceutical and cosmetic industries with pharmaceutical glycerine.
BIOPETROL INDUSTRIES AG currently manufactures approximately 300,000 tonnes of biodiesel and 30,000 tonnes of pharmaceutical glycerine per year in Schwarzheide and Rostock. At the end of March, building will begin on another facility. In Rotterdam in the Netherlands, BIOPETROL is building a facility with a capacity of 400,000 tonnes biodiesel and 60,000 tonnes of pharmaceutical glycerine per year. By the end of 2007, annual capacity should have increased five-fold to a total of 750,000 tonnes biodiesel. Expansion of capacity in Rotterdam is being examined, along with extending growth by further acquisitions and extending the product range based on the combination product glycerine.
Disclaimer
This press release is neither an offer to sell nor an invitation to submit an offer to buy or subscribe to securities. This release and the information that it contains are not intended for direct or indirect circulation to or within the United States of America, Canada, Australia or Japan.
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