MANNHEIM (dpa-AFX) - Persistently high energy and raw material costs are making biofuel producer Cropenergies more cautious. Also due to the recent decline in ethanol prices, the pressure on earnings is increasing, the Südzucker subsidiary announced in Mannheim on Wednesday. The first effects were already evident in the third quarter. The company's management specified its operating profit forecast for the financial year that runs until the end of February. The news caused displeasure on the stock market. Shortly after trading opened, Cropenergies shares fell by up to 6.1 percent. The share price thus fell back to its December level.

Management now expects an operating profit of 225 to 255 million euros for fiscal 2022/23, the SDax-listed company further announced. In a best-case scenario, Cropenergies would thus double its prior-year figure. Previously, the forecast range was ten million euros lower at the lower end, but the same amount higher at the upper end. The forecast for sales remained unchanged at 1.47 to 1.57 billion euros (previous year 1.08 billion euros).

In the third fiscal quarter (to the end of November), Cropenergies slightly increased sales to 328.1 million euros (previous year 317.7) thanks to higher prices, more than offsetting a decline in volumes. Compared with previous quarters, however, sales are down because ethanol prices in Europe are falling. This is because more and more is being imported from countries with lower raw material and energy costs. In addition to biofuel, Cropenergies also produces food and animal feed.

In addition, the company is having to contend with significantly higher purchasing costs for raw materials, which are having a negative impact on earnings. As a result, the operating result for the third quarter was only stable at around 55.7 million euros, whereas Cropenergies was able to report significant increases in this area in previous quarters. Below the line, the manufacturer earned 27 percent more at just under 44.7 million euros - this was due to the fact that significantly fewer taxes were paid./ngu/tav/stk