CM Biomass announces strong results in difficult year
Having for the past two years added production to CM Biomass’ portfolio of trading and expanded on logistics and sourcing solutions, CM Biomass has in the latest annual result shown the strength of combining production and trading as a flexible provider with a record setting result.
The past financial year of 2023/24 has posed significant challenges to the biomass industry, including a mild and late winter season with less demand and lowered prices on wood pellets as a result. Despite this, CM Biomass has been able to deliver the best result in its 15 years of operation, landing an EBT of EUR 41 million.
CEO of CM Biomass, Morten Buchgreitz, credits several factors to this year’s record result.
“We’re incredibly proud to deliver year on year positive results, this year being no different, and even record-breaking. Much of this success can be credited to our organisation and the many dedicated people, who run production, trading, and back-office functions. It would not be possible without their dedication,” says Morten Buchgreitz, adding:
“Our business model as a flexibility provider has especially in a year with lower demand allowed us to accommodate our clients, storing or buying back any excess products. This grows trust and builds strong partnerships with clients, that leads to better business.”
CM Biomass annually trades 3.6 million tonnes of biomass and owns directly or through joint ventures 11 production facilities in the US and in Denmark, have access to 65 warehouses across the world and have sales offices from Seoul to Sweden underlining the global bandwidth of the company.
A strong and independent organisation
CM Biomass has this year taken another step towards operating independently, as the company has both physically and support function wise moved away from the founding company, Copenhagen Merchants. By moving office and in-sourcing support functions, CM Biomass is now ready to stand on its own.
“CM Biomass has been on a massive growth journey for the past years with many new people joining, especially within our production. To support this growth along with our evolving business, also the support functions have seen upgrades with new colleagues covering risk and insurance, ESG, VAT and tax, market analysis, and IT. This has led us to move our Copenhagen headquarter into our own offices” says Ask Michael Munck, Group CFO of CM Biomass.
Also, on the ESG and sustainability agenda of the biomass industry, CM Biomass has moved ahead this year, completing the company’s first double materiality assessment in preparation for upcoming CSRD reporting requirements.
Investments into ESG supports CM Biomass aspiration towards supporting and documenting a sustainable operation of the biomass industry. This includes carbon accounting on products and the implementation of FSC, SBP, GGl, and PEFC certifications throughout the supply chain along with adherence to EUTR and individual national trade requirements.
Following this, the goal is to continue to support the transition of energy intensive industries towards less carbon-emission intensive energy sources.
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