Irish-owned ClonBio Group has announced record profits after tax for the year ended December 31, 2021 of €111 million, an increase of 24% on the previous year outturn of €89.4 million.
Employing over 400 staff and with operations in Hungary, Slovenia, Serbia, Lithuania, Ireland, the US and Canada, ClonBio Group Ltd. is a developer and manufacturer of sustainable bioproducts from grain, including GMO-free proteins (for animal and human nutrition).
It also develops and manufactures biofuels, including liquid and gaseous.
ClonBio Group accounts
The increase in profits before tax occurred at a time of record cost inflation with the company stating that multi-fold increases in input costs for corn, gas and electricity, were offset by strong commodity pricing for bio-ethanol and animal feeds, as well as an improving product mix towards higher value outputs.
The latest financials for the company reveal that turnover in the period increased by 25% to €450 million (2021: €361 million), driven by strong pricing and a higher proportion of higher value sales into 35 countries.
Richie Boucher, chairman, ClonBio said: “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.”
Mark Turley, founder and chief executive added: “Despite inflationary pressures and unprecedented supply chain challenges and price spikes [over] the last year, all of our previously announced investments (€200 million investment programme 2020-2022) will be completed and commissioned by the end of this year.
“This activity is in addition to an active and ongoing programme of M&A [mergers and acquisitions], that will see ClonBio become a leading biogas producer in Hungary, Serbia, Slovenia and Ireland.”
The chief executive added that two of the group’s most important investments right now are a new barley protein plant in Hungary and investment in Green Generation in Ireland.
“Our barley processing plant will be fully operational by year end and is set to become a key source of plant proteins for human consumption, whilst Billy Costello’s Green Generation is already a trailblazer in biomethane and plastic recycling,” Turley explained.
ClonBio operations
- Group subsidiary Pannonia Bio Zrt. produces protein products, ethanol, biogas, animal feeds and organic fertiliser in Hungary;
- Group subsidiaries in Hungary, Ireland and Slovenia produce renewable power from biogas, solar and wind;
- Group subsidiary Green Generation produces biomethane in Ireland;
- Group subsidiaries in Ireland recycle and upcycle waste plastics;
- Group subsidiaries in Hungary, Ireland and Slovenia produce organic fertiliser;
- Group subsidiary Renix Inc. develops uninterrupted ion exchange technology in Canada;
- Group subsidiaries in Lithuania, Serbia and the U.S are developing new biofuels production facilities;
- Group subsidiaries in Lithuania and the U.S are developing new alternative protein production facilities.
The group’s primary operation is Pannonia Bio Zrt, a wholly-owned Hungarian subsidiary that manufactures sustainable bio-products from grain produced by more than 600 Hungarian farmers.
Green Generation in Ireland
In 2021, ClonBio established ClonBio Green Gas Ltd., a joint venture (JV) with the Costello family.
As a result of this transaction, ClonBio Green Gas Ltd., became the owner of Costello’s flagship Green Generation business, as well as other biomethane interests.
Green Generation has developed food waste solutions for Irish businesses, ensuring that logistics are powered by renewable fuels; organic waste becomes biomethane and plastics are upcycled into new products rather than being discarded or incinerated.
The JV anticipates expanding this business model in Ireland, as well as expanding it onto the continent.
Green Generation is a key partner to Tesco segregating and recycling its food and associated plastic packaging nationally. It is also the only biogas producer in Ireland supplying biogas directly into Gas Networks Ireland.
Outlook
According to ClonBio,“trading to mid-year was ahead of expectation, with higher input costs also reflected in higher market prices”.
However, the group admits that “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”.