By David Sachs
Shares of Verbio Vereinigte BioEnergie experienced a significant decline on Tuesday following the announcement that falsely labelled Asian biodiesel imports had caused a sharp drop in prices, ultimately affecting the company's earnings for 2023.
At 0951 GMT, Verbio shares saw a decline of 9.5% to EUR34.69.
Verbio revealed that its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fiscal year ending on June 30 had fallen by 52%, amounting to 240.3 million euros ($254.5 million) compared to the previous year. The company's EBITDA margin also decreased from 28% to 12%.
The company attributed the decline in biodiesel prices to falsely labelled biodiesel imports and reported that Germany's federal government had requested an investigation into the matter by the European Union in June, as reported by Reuters. Additionally, Verbio stated that the delay between procurement and sales negatively impacted their results.
Despite the biodiesel decline, Verbio's overall sales revenue increased by 9% to EUR1.97 billion. This growth was partially offset by improvements in Verbio's bioethanol business.
Looking ahead, Verbio anticipates an EBITDA range between EUR200 million and EUR250 million for fiscal year 2024.
Verbio plans to propose a dividend of EUR0.20 per share.