Clonbio Group Ltd Financial Statement 2018

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Strong trading performance in renewable energy and animal nutrition

Dublin Group develops Europe’s largest grain based biorefinery

€30m new investment in bioproduct incubator and process efficiency

Growing market for renewable fuel that reduces transport carbon emissions by 70%

Increased importance for animal nutrition products

 

The trading and financial performance of ClonBio Group Ltd for the year ended December 31st 2017 was strong with Revenues increasing by 11 per cent to €278 million and Gross Profit up €14.3m or almost 23 per cent to €77.2m. Operating profit was €11.4m higher at €35.5m.

 

ClonBio is an Irish owned agribusiness manufacturing sustainable bioproducts from grain. Founded by Dubliner Mark Turley in 2008, the Group has grown to be a market leader and large-scale producer of renewable energy and animal nutrition in Europe. Since the year end the Group has changed its name to ClonBio Group Ltd www.clonbio.com from Ethanol Europe Renewables Ltd to better reflect the broadening of its bioproduct portfolio. It has also opened a new Group head office in Fitzwilliam Place, Dublin.

 

ClonBio has developed Europe’s largest grain-based biorefinery.  Situated close to its corn feedstock source in Central Europe, the refinery purchases 1.1m tons of corn from farmers every year. During 2017, ongoing investment in the biorefinery brought improved productivity, greater efficiency and higher operating levels.  The installation of a new fermenter delivered additional capacity.  These factors enabled the plant to increase output in volume terms by almost 6%.

 

Higher ethanol prices contributed to the better performance.  Influences on the price included increased demand for ethanol following the introduction of E10 in more European markets, higher international ethanol prices and reduced capacity elsewhere in Europe.

 

Volume output of animal feed and corn oil also grew. Animal feed prices were softer while corn oil prices strengthened. Pannonia Gold, the Group’s animal feed brand, is a premium product in demand for its enriched protein, GMO free and anti-biotic free status. Demand for animal feed is increasing at a time when feed shortage has become a major issue in Ireland and Europe.

 

During the year, a storage and port facility direcly adjoining the biorefinery on the River Danube was acquired from Cargill. The acquisition gave the Group its own port, greater operational flexibility, added almost 10 ha of land for potential expansion and realised synergies that reduced costs.  

 

The Group entered the year with healthy cash resources that were furthered strengthened by strong cash flows throughout the period.  These factors enabled significant paydown of debt.  Short term borrowings were reduced by €49m to €35m while long term borrowings fell by €18m to €48m. Net profits benefitted from reductions in corporate tax rates in Hungary.

 

Commenting on the outlook for the current year, Mark Turley, founder and CEO of the Group said: “The year 2018 has started well with the Group investing a further €30m in the development of its biorefinery, which is now the largest ethanol plant in Europe and recognised as one of the most efficient.  Renewable biofuels are by far the most important technology in the world for reducing carbon emission in transport.  Our ethanol reduces Carbon emissions in petrol by 70% and is on track for 90% by 2030.  We see our market growing as E10 (10% ethanol blended into petrol) is introduced more widely in Europe.  We are strongly advocating for the introduction of E10 in Ireland. “

 

“ClonBio also functions as an incubator for bioproducts, trialling laboratory proven concepts for their potential to achieve commercial scale.  Novel bioproducts are being developed in nutrition, health, biochemical and energy markets in partnership with concept originators. Commercialisation is being mentored through the biorefinery and at the Group’s head office in Dublin.”

 

ClonBio’s production, marketing and Europe wide distribution activities are operated through a subsidiary, Pannonia Bio www.pannoniabio.com. The Ethanol Europe identity is being retained after the name change as an ethanol advocacy platform through a subsidiary company.

 

 

 

For further information:

 

Daniel Murray    +353 87 7750317                                 dmurray@eerl.com

                                                                                       www.clonbio.com

 

November 6th, 2018

 

 

Notes for Editors:

ClonBio’s subsidiary, Ethanol Europe (EERL) www.eerl.com, is strongly advocating the upgrading of E5 to E10 in Ireland.  E5 is the standard petrol in Ireland containing 5% ethanol.  By raising the mix to 10%, E10 would greatly increase the economic and environmental benefits with immediate effect and no extra cost.  E10 is the standard in a growing number of European countries.  It is also the standard in the US where it is used in 250 million petrol engines of all types and ages and where they are moving to E15, or 15% ethanol. EERL has commissioned reports that will be available shortly on the potential for economic and environmental benefits from increasing the use of ethanol in Ireland.

 

Pannonia Gold www.pannoniagold.com  is a premium animal feed produced in conjunction with ethanol.  Its GMO free and antibiotic free status make it an increasingly important feed for farmers seeking premium classification for livestock with retailers who insist on these standards.

 

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Daniel Murray