DGAP-News: EnviTec Biogas increases revenues and earnings in FY 2017 to highest level since record year 2011

EnviTec Biogas increases revenues and earnings in FY 2017 to highest level since record year 2011

• Sales revenues climb 22.0% to EUR 198.8 million (previous year: EUR 162.9 million)
• Total output down 1.1% to EUR 202.6 million
• Earnings before interest and taxes (EBIT) of EUR 6.5 million (previous year: EUR 4.2 million)
• Earnings per share at EUR 0.33 (previous year: EUR 0.11)
• Dividend of EUR 1.00 per share proposed for FY 2017

Lohne, 15 May 2018 - EnviTec Biogas AG (ISIN: DE000A0MVLS8) increased its sales revenues and earnings noticeably in the fiscal year 2017, mainly due to a very positive performance of the Own Plant Operation and Services segments. Sales revenues in the company's largest segment, Own Plant Operation, picked up by 9.3% to EUR 111.2 million. The Services segment expanded at a clearly double-digit rate for the third consecutive year and boosted its revenues by 35.3% to EUR 42.0 million. The Group's positive revenue trend was also due to a larger number of projects invoiced in the Plant Construction segment, whose revenues increased by 51.0% to EUR 45.6 million. Total revenues of the Group rose by 22.0% to EUR 198.8 million (previous year: EUR 162.9 million), the highest level since 2011. The Group's total output declined by a moderate 1.1% to EUR 202.6 million. At the same time, capacity utilisation in the Plant Construction segment dropped sharply as deadlines and projects were postponed. To better cope with the volatile conditions in some core markets and the growing importance of the international markets, the Plant Construction segment was restructured at the end of 2017. In this context, operations such as permits and structural engineering were outsourced and the project development department was streamlined.

At the bottom line, the EnviTec Group generated clearly higher earnings in the reporting period although the conditions in the international biogas markets remained difficult and volatile. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed from EUR 22.2 million to EUR 24.6 million. Earnings before interest and taxes (EBIT) improved from EUR 4.2 million to EUR 6.5 million. The EBIT margin rose to 3.3% (previous year: 2.6%). Earnings per share amounted to EUR 0.33 in 2017 (previous year: EUR 0.11).

Accumulated profits of EUR 57.5 million were recognised in the separate financial statements of EnviTec Biogas AG. The Executive Board and the Supervisory Board propose to pay out a dividend of EUR 1.00 per share for the fiscal year 2017.

At the end of 2017, the EnviTec Group had cash and cash equivalents of EUR 14.9 million (previous year: EUR 16.5 million) and other current assets in the amount of EUR 10.0 million (previous year: EUR 11.6 million). At EUR 19.6 million, the EnviTec Group's net cash flow was almost on a par with the previous year's EUR 20.0 million. As of the balance sheet date, EnviTec's equity ratio again stood at a comfortable level of 54.7% (31 December 2016: 55.3%).

As the business activity in the Services and Own Plant Operation segments was expanded, the headcount increased from 439 to 447 people as of the reporting date of 31 December 2017.

Jörg Fischer, Chief Financial Officer of EnviTec Biogas AG: "On the one hand, the growth achieved in 2017 is based on the expansion of the business activity in our Own Plant Operation segment, which generates high cash flows. On the other hand, we have continuously expanded our business activity outside Germany since the record year 2011 and generated about one third of our revenues in the international biogas markets in 2017. Much of this growth came from the Services segment, which recorded strong growth especially in France and Denmark. But the Services segment saw its business volume grow also in Germany thanks to repowering projects and the servicing of additional plants. Where the Plant Construction segment is concerned, we believe that the ongoing international expansion holds the biggest opportunities for this segment, notwithstanding the difficulties it is facing. The recently optimised process and cost structure has proven its worth in the year to date. We are therefore optimistic that we will be able to efficiently complete the many projects in our pipeline on the basis of the new structure and to generate a positive segment result (EBIT) with a segment output of roughly EUR 40 million in the current fiscal year."

The Group's total output is expected to reach the prior year level in the fiscal year 2018. Moreover, EnviTec's Executive Board projects slightly improved earnings before interest and taxes (EBIT). The achievement of the company's targets will depend on the business trend in the key international markets of the Plant Construction segment, where EnviTec Biogas had an order backlog of EUR 102.9 million at the end of 2017 (previous year: EUR 103.3 million). France and Denmark are currently the most important output markets for the Plant Construction segment, followed by Great Britain and China.

The full Annual Report for 2017 is available at http://www.envitec-biogas.de/ir/veroeffentlichungen/finanzberichte.html

About EnviTec Biogas AG
EnviTec Biogas AG covers the entire value chain for the production of biogas, including the planning and turnkey construction of biogas plants and biogas upgrading plants as well as their commissioning. The company takes charge of biological and technical services on demand and also offers full plant and operational management. In addition, EnviTec also operates its own biogas plants. In 2011, EnviTec Biogas expanded its business operations into the direct marketing of upgraded biomethane as well as the marketing of green electricity and balancing energy. With a presence in 14 countries worldwide, EnviTec Biogas AG is represented by its own companies, sales offices, strategic partners and joint ventures. In 2017, EnviTec generated revenue of EUR 198.8 million and EBIT of EUR 6.5 million. The EnviTec Group currently has around 440 employees. EnviTec Biogas has been listed on the Frankfurt Stock Exchange since July 2007.
 

Contact:
Anne Selzer
EnviTec Biogas AG
Tel: +49 25 74 88 88 - 245
Email: a.selzer@envitec-biogas.de