CM Biomass financials at an all-time high
CM Biomass announces record-breaking financial results with an increase in gross profit to EUR 66 million despite a challenging and unpredictable year due to a very stretched market and highly volatile prices for wood pellets. The solid result leaves CM Biomass in a strong position as Morten Buchgreitz succeeds founder Simon Rodian Christensen as CEO.
CM Biomass, one of the world’s largest suppliers of biomass and wood pellets, managed to increase momentum in a year characterized by unpredictability and can report a record-setting financial result, increasing revenue, profit, and volume. CM Biomass can report its highest gross profit to date of EUR 66 million and a revenue of EUR 826 million, largely driven by an increase in volume and the price for wood pellets.
“I am extremely proud that we have managed to raise our profit and volume. This past year has been challenging in many ways, to put it mildly. But despite the challenges, we have managed to come out stronger,” says Simon Rodian Christensen, departing CEO of CM Biomass and second-generation owner and CEO of Copenhagen Merchants, and continues:
“The global wood pellet market was already very stretched before Russia’s invasion of Ukraine. As the war broke out and the EU decided on strict sanctions against Russia, the supply of wood pellets from Russia and Belarus, equivalent to almost a third of our supply, was cut off. This combined with already undersupplied energy markets led to a tremendous worldwide shortage. It is a great accomplishment that CM Biomass managed to scale up production and source wood pellets from new markets to meet the demand from private consumers and power plants.”
Growth and new markets
In 2022, as geopolitical tensions and volatility in the energy market were at their highest and the supply of wood pellets was at its lowest, CM Biomass doubled its production capacity in the US with the strategic acquisition of Mohegan Renewable Energy (MRE), including its three manufacturing facilities in Alabama, Mississippi, and Tennessee. The acquisitions form part of CM Biomass’ growth strategy and have resulted in a doubling of its production capacity in the US, also largely supported by the establishment of three new pellet plants.
CM Biomass’ production capacity in the USA is now more than 1 million metric tons, equivalent to approximately one third of CM Biomass’ annual sales volume of 3.3 million metric tons.
Moreover, CM Biomass has increased its presence and entered new markets in Asia with the opening of offices in Singapore, Vietnam, and South Korea, thus facilitating new product flows through its representation in a total of 12 countries.
“CM Biomass has been on an extraordinary growth journey in recent years, having multiplied our workforce, opened new production facilities, and entered new markets. At the same time, we have had to navigate a global energy crisis. The fact that we have succeeded in this has only been possible thanks to a fantastic management team and staff and the support of our parent companies USTC and Copenhagen Merchants,” says Christian Junker, Chairman of the Board of CM Biomass.
New CEO
Danish United Shipping and Trading Company (USTC) entered into an agreement in March 2021 to purchase a majority stake in CM Biomass. In May 2023, USTC further increased its shares in CM Biomass by purchasing additional shares from one of CM Biomass’ co-founders. Since the purchase agreement came into effect in 2021, founder and second-generation owner of CM Biomass Simon Rodian Christensen has held the role of CEO of both CM Biomass and parent company Copenhagen Merchants.
Following a successful transitional period and integration of CM Biomass into USTC's portfolio of companies, and with the prospect of continued growth, the time is now ideal for Simon Rodian Christensen to pass the baton on to a new CEO, who can focus 100 percent on CM Biomass. This will also free up time for Simon Rodian Christensen to increase his focus on the family’s main companies, which are also experiencing sustained growth.
Morten Buchgreitz will replace Simon Rodian Christensen as CEO of CM Biomass on July 1st this year. He comes from a position as Group SVP of Vestas Global Offshore and has previously held the role of CEO of Markets & Bio Energy at energy company Ørsted. CM Biomass’ Executive Management will thus comprise Morten Buchgreitz as CEO, Michael Hjorth Christensen, who is appointed Deputy CEO, Ask Michael Munck who is CFO, and Todd G. Bush, Head of North America.
“I am very proud and excited to have been appointed CEO. At the same time, I realize that I have some very big shoes to fill. I look forward to continuing to build on the great work that Simon and the entire organization have already accomplished. The strong financial results, which the company can present today, is a testament to that and puts CM Biomass in a solid position to continue its growth trajectory in the years to come,” says Morten Buchgreitz, CEO of CM Biomass.
Morten Buchgreitz is already well-acquainted with CM Biomass, as he has been a member of CM Biomass' Board of Directors since December 2021. He was also a member of the Board of Directors for USTC in 2014-2022.
"We are very happy to welcome Morten Buchgreitz as our new CEO. Professionally and in terms of values, he represents a strong asset with in-depth knowledge and a comprehensive understanding of the international energy industry, where he has extensive experience working with green transition and sustainable alternatives. We are positive that together with the incredibly talented team in CM Biomass, he will continue to deliver impressive results through readiness for change, organic growth, and relevant acquisitions," says Christian Junker, Chairman of the Board of CM Biomass.
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