12 May 2010 10:44 [Source: ICIS news]
LONDON (ICIS news)--BDI Biodiesel's first quarter net profit rose by nearly 51% to €1.1m ($1.4m) from €729,000 in the same period last year mainly due to higher sales and lower-than-expected costs, it said on Wednesday.
Sales in the first three months to 31 March increased 49.4% to €10.8m, while the ratio of material expenses to sales decreased, the biodiesel plant and technology manufacturer said.
Earnings before interest and tax (EBIT) climbed to €1.3m from €700,000 in the same period last year, with the EBIT margin rising from 9.7% to 12.5%, it added.
A strong existing order book, with total orders amounting to €30.8m at 31 March 2010 compared with €21.1m a year ago, would guarantee positive annual earnings, BDI said.
The Austrian company further said it expected to match sales of previous years and was still targeting an EBIT margin as high as 10%.
According to BDI, demand in the biodiesel industry had stabilised, raw material prices have returned to normal and there were signs that large projects were becoming easier to finance.
BDI said it continued to have strong cash reserves, with total equity of €69.3m at 31 March, and it would concentrate on introducing new products and entering new markets in 2010.
The company said it had strengthened its sales team to target future markets such as eastern Europe, the Commonwealth of Independent States (CIS), North and South America, south-east Asia and ?xml:namespace>
It was also continuing to invest in R&D with research being undertaken to examine biomass-to-liquid and biodiesel-from-algae processes, it added.
($1 = €0.78)
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