VERBIO share gives way: VERBIO with weaker result
The biofuel manufacturer VERBIO is suffering from the sharp rise in raw material prices.
Even if the prices for biodiesel and bioethanol have risen to record levels, concluded price hedges had a disproportionately high dampening effect given the also increased raw material prices, the SDAX company announced on Thursday in Leipzig. According to stockbrokers, sales in the first quarter of the fiscal year developed better than expected, but the profit figures are disappointing. The share fell on XETRA at times 5.31 percent to 66.90 euros.
Before interest and taxes (EBIT), the operating result for the first quarter of the business year (end of September) was EUR 33.1 million, around 27 percent below the same period of the previous year. The margin deteriorated significantly to 9.4 percent. However, at 17.4 percent in the same period of the previous year, this was also above average and had already deteriorated in the previous quarters since then. VERBIO announced that in the next few months the prices for biofuels would rise disproportionately to the raw material costs, which will contribute to improved margins in all segments.
The result for the period also fell significantly in the first quarter: at 22.6 million euros, this was almost 29 percent less than last year. In contrast, sales increased by around a third to EUR 350.4 million. According to the announcement, VERBIO expects a “very strong” second quarter.
The quarterly figures disappointed investors, however, and there was a sell-off. Most recently, the share was down 12 percent at EUR 62.10 and thus at the level of the beginning of October. This means that profit-taking is taking place on a large scale after the most recent record rally. Because over the course of the year, the paper has still doubled in price.
/ lew / stk