German Pellets GmbH

EANS-News: German Pellets has significantly extended market presence in Central Europe

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annual report

Subtitle: Group annual accounts 2011: turnover and earnings increased 

Wismar/Germany (euro adhoc) - The German Pellets Group has concluded its 2011
business year with a clear increase in turnover and profit. In Europe's pellet
market, characterized by growth, the group of companies has expanded its market
position. A key contributing factor in this was the takeover of FireStixx
Holzenergie GmbH, Vilsbiburg. 

In the 2011 business year, the total operating performance of the German Pellets
Group rose to 292.9 million Euro, compared to 165.4 million Euro in 2010. The
company's EBITDA rose from 24.9 million Euro in 2010 to 29.6 million Euro in the
last business year. 

A key determining factor in the 2011 business year was the integration of the
FireStixx group of companies into the German Pellets organisation. 

2011: the first bond, the first US site, "PowerPlus" …
Apart from the takeover of Firestixx, German Pellet Group's business year 2011
was also characterized by its first bond issue, for the purpose of opening up
new production sites, as well as extending and rationalising existing sites.
German Pellets Group's productivity was further enhanced by this. The company
addressed the global increase in demand for wooden pellets by building its
pellet production facility in the USA. From 2013, in Texas the group of
companies will produce a half million tonnes of wooden pellets each year. 

The Group's brands - German Pellets, FireStixx and German Horse Pellets - were
further established in 2011, thanks to targeted marketing measures and the use
of new dealers. The proportion of deliveries into the higher-priced
private-customer segment has further increased as a result. In introducing the
innovative product refinement process "Power Plus", German Pellets has attained
a further competitive advantage, thereby also strengthening its ties with its
partner dealers. German Pellets has also significantly intensified its level of
business with the distributive trade. Above all, it is industrial pellets for
large producers of electricity and heating that are traded throughout Europe by
German Pellets. In this segment, demand has shown significant growth due to
increasing energy prices and politically favourable framework conditions, with
German Pellets' competence making it a trading partner much in demand. The group
of companies has also further developed its storage sites in Europe. 
2012: Good growth prospects in the European pellet market
This current business year, not least because of its market presence, the German
Pellets Group's expectation is that business will continue to develop
positively. In view of rising prices for fossil-based energy sources and
favourable framework conditions established by the State, the projection is one
of robust market growth worldwide, in which German Pellets continues to extend
its market share in Europe, with its international orientation and the
associated export opportunities. Current market studies see the largest pellet
market worldwide evolving in the United Kingdom. In July, Britain's energy
ministry significantly improved the framework conditions for producing
electricity fuelled by wooden pellets. Following this, energy companies and
dealers in raw materials are trying to secure large quantities on a long-term
basis. In the end-user sector also, in view of clear cost advantages favouring
pellets (up to 50 per cent cheaper than oil and gas), expectations throughout
Europe point to increasing sales of pellets. Experts forecast that pellet
consumption in Europe will almost treble by 2020, approaching 35 million tonnes
(Pöyry Study 2011).

In Germany itself, around 300,000 pellet-based central heating units and
pellet-burning stoves could be installed by the end of the year, an increase of
50,000. In the medium-sized customer sector, supplying local-heat, district-heat
and process-heat networks, demand has more than doubled, coming from industry,
municipalities, the domestic market, the health sector and the distributive

Likewise, on the Austrian market there is a discernible trend towards facilities
with higher output and correspondingly high demand for pellets. This year, sales
of pellet boilers in Austria increased between 20 per cent (boilers up to 30 kW)
to 38 per cent (boilers of 30 kW and higher).

Regarding sales of its animal hygiene products, the company subsidiary German
Horse Pellets is benefiting from the latest innovations in production capacity
and packaging, permitting various lot sizes to be offered. High levels of
precipitation and also unfavourable situations regarding raw materials for
alternative products are causing an increase in demand for animal litter close
to nature. 

In terms of heating from renewable energies, Germany is still a developing
country. The recently-discussed disposal premium for the exchange of old
oil-based and gas-based heating facilities may prove helpful. The intention is
for the subsidy favouring renewable heating to be covered by an apportioned
charge on fossil-based energies.

The complete Group report can be viewed on the Internet at, under "Investor Relations".

About German Pellets
German Pellets GmbH was founded in 2005 in Wismar (Mecklenburg-Vorpommern) and
has developed into the leading producer of wood pellets in Germany and Europe.
German Pellets produces wooden pellets at twelve sites in Germany and Austria,
as well as products for animal hygiene.

Further inquiry note:
Claudia Röhr
Tel.: +49 3841 30306412

end of announcement                               euro adhoc 

company:     German Pellets GmbH
             Am Torney 2a
             D-23970 Wismar
phone:       +49 (0) 3841 30 30 6 0
FAX:         +49 (0) 3841 - 30 30 6 91 00
sector:      Energy
ISIN:        DE000A1H3J67
stockmarkets: free trade/Bondm: Stuttgart, Open Market: Frankfurt 
language:   English

Weitere Meldungen: German Pellets GmbH

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