Clonbio Group Ltd shows strong performance in renewables and animal nutrition

Date

06 Nov 2018
€30m new investment in bioproduct incubator and process efficiency

The trading and financial performance of ClonBio Group Ltd, the parent company of Ethanol Europe and Pannonia Bio, for the year ended December 31st, 2017 was strong with Revenues increasing by 11 per cent to €278 million and Gross Profit up €14.3m or almost 23 per cent to €77.2m, the Group announced in Dublin today. Operating profit was €11.4m higher at €35.5m.

Since the year end the Ethanol Europe’s Irish parent company has changed its name to ClonBio Group Ltd to better reflect the broadening of its bioproduct portfolio. Its subsidiaries, Ethanol Europe and Pannonia Bio will continue to represent the Group in advocating for the ethanol industry in regulatory matters.

The Group has developed Europe’s largest ethanol biorefinery, situated close to its corn feedstock source in Hungary. During 2017, ongoing investment in the biorefinery brought improved productivity, greater efficiency and higher operating levels. The installation of a new fermenter delivered additional capacity.  These factors enabled the plant to increase output in volume terms by almost 6%.

Higher ethanol prices contributed to the better performance. Influences on the price included increased demand for ethanol following the introduction of E10 in more European markets, higher international ethanol prices and reduced capacity elsewhere in Europe.

Volume output of animal feed and corn oil also grew. Animal feed prices were softer while corn oil prices strengthened. Pannonia Gold, the Group’s animal feed brand, is a premium product in demand for its enriched protein, GMO free and anti-biotic free status. Demand for animal feed is increasing at a time when feed shortage has become a major issue in Europe.

During the year, a storage and port facility direcly adjoining the biorefinery on the River Danube was acquired from Cargill. The acquisition gave the Group its own port, greater operational flexibility, added almost 10 ha of land for potential expansion and realised synergies that reduced costs.  

The Group entered the year with healthy cash resources that were furthered strengthened by strong cash flows throughout the period. These factors enabled significant paydown of debt. Short term borrowings were reduced by €49m to €35m while long term borrowings fell by €18m to €48m.

Commenting on the outlook for the current year, Mark Turley, founder and CEO of the Group said: “The year 2018 has started well with the Group investing a further €30m in the development of its biorefinery, which is now the largest ethanol plant in Europe and recognised as one of the most efficient.  Renewable biofuels are by far the most important technology in the world for reducing carbon emission in transport and were recently identified by IPCC and IEA as essential for decarbonising transport for decades ahead.  Our ethanol reduces carbon emissions in petrol by 70% and is on track for 90% by 2030.  We see our market growing as E10 is introduced more widely in Europe.“

“We also operate as an incubator for bioproducts, trialling laboratory proven concepts for their potential to achieve commercial scale.  Novel bioproducts are being developed in nutrition, health, biochemical and energy markets in partnership with concept originators.”

The Group’s production, marketing and Europe wide distribution activities are operated through its subsidiary, Pannonia Bio www.pannoniabio.com, which also changed its name from Pannonia Ethanol earlier this year.

For further information:

Daniel Murray   
+353 87 7750317     
dmurray@eerl.com                        
www.clonbio.com                                                                                    

November 6th, 2018