MANNHEIM (dpa-AFX) - Biofuel producer Cropenergies expects a drop in revenues and operating profits in the current 2023/24 financial year due to a significant drop in ethanol prices. The price is significantly below last year's record level, the Südzucker subsidiary announced in Mannheim on Monday evening. Lower ethanol revenues than in the past record year 2022/23 (end of February) are thus to be expected. Overall, 2023/24 revenues are expected to fall to between EUR 1.27 billion and EUR 1.37 billion (previous year: 1.49 billion). Operating profit is expected to fall even more significantly to 95 to 145 million euros (prior year: 251 million euros). Cropenergies expects earnings before interest, taxes, depreciation and amortization (Ebitda) to slump to 140 to 190 (previous year: 294) million euros.

A significant decline in sales, Ebitda and operating profit is also expected for the 1st quarter (March to the end of February), the statement added. The main reasons were normalized prices for ethanol. In addition, raw material and energy costs are expected to be higher than in the same period last year.

The volatilities on the sales, raw material and energy markets, which have increased as a result of the ongoing war in Ukraine, are likely to continue in the group's view. However, the introduction of E10 in other European countries points to stable sales of fuel ethanol, which will, however, continue to be offset by high import volumes, the statement added.

The share price was relatively unimpressed by the news. The full report for fiscal 2022/23 is to be published on May 24./jha/he