Irish-owned agribusiness company ClonBio Group has announced record profits after tax of €111 million for 2021, up 24 per cent on the previous year.
This increase occurred at a time of record cost inflation with multi-fold increases in input costs for corn, gas and electricity, offset by strong commodity pricing for bio-ethanol and animal feeds, as well as an improving product mix towards higher value outputs, it said.
Turnover in the period increased by 25 per cent to €450 million driven by strong pricing and a higher proportion of higher value sales into 35 countries.
“Climate change, the war in Ukraine and the unfolding energy crisis further highlight the necessity for food chain resilience, energy security and rapid progress on decarbonisation. Biofuels from diverse sources offer immediate and sustainable solutions to the current food, energy and climate crises, as well as new income sources for Europe’s farmers,” said ClonBio chairman Richie Boucher.
ClonBio founder and chief executive Mark Turley said all of its previously announced investments will be completed and commissioned by the end of the year despite inflationary pressures and unprecedented supply chain challenges.
“This activity is in addition to an active and ongoing programme of M&A, that will see ClonBio become a leading biogas producer in Hungary, Serbia, Slovenia and Ireland,” he said.
The group’s primary operation is Pannonia Bio Zrt, a wholly owned Hungarian subsidiary that manufactures sustainable bio-products from grain produced by upwards of 600 Hungarian farmers, many of scale. These include high value GMO-free proteins for animal and also human nutrition as well as bio-ethanol/alcohol, used in an increasing range of industrial applications — hand sanitisers, hygiene products, windscreen wash — and as a biofuel.
Group average employment increased by 77 to 356 staff in 2021, with the number set to increase to 500 by current year end.
The group has been engaged in multiple acquisitions and company formations in 2021 and 2022 in Europe and North America in plastic recycling, biofuels, process technology, and renewable power generation.
Mr Turley said trading in the first half of 2022 was ahead of expectations, with higher input costs also reflected in higher market prices.
“However, commodity price volatility over recent months alongside a poor grain harvest in Hungary and rising energy and transport costs make for a more challenging outlook to year end and into 2023.
“Despite these challenges we are optimistic about ClonBio’s breakthroughs in alternative proteins, some of which we see coming to market over the course of 2022 and we are confident that 2022, will see further meaningful progress developing new, higher value sustainable products, whilst supporting food chain resilience, energy security and the green transition.”
