EkoNiva announces 2019 financial results

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Ekosem-Agrar AG, the holding company of Russian milk producer EkoNiva Group, has published its Annual Report for the year 2019.

EkoNiva announces 2019 financial results

In the fiscal year 2019, the Group recorded a strong increase in total output, sales revenues and operating result. Sales revenues climbed to EUR 402.7 million, up 64% on 2018. Total output adjusted for one-time lucky buy effects from acquisitions also rose noticeably by approx. 50% to EUR 564.5 million (previous year: EUR 376.5 million).

Revenues were primarily driven by raw milk production, which rose by 85% to EUR 255 million and accounted for 63% of total revenues, up from 56% in 2018. Revenues from the sale of grain and other agricultural products also grew by an impressive 58% to EUR 78 million.

Major progress was also achieved in milk processing, the youngest business area of the Group, whose revenues rose by approx. 39% to EUR 38.3 million.

‘By converting and expanding our processing capacity and investments in the umbrella brand EkoNiva, we are pushing ahead with our strategic objective to become a leading vertically integrated supplier of dairy products in Russia’, says Stefan Duerr.

Earnings before interest, taxes, depreciation and amortization (EBITDA) improved by 44% to EUR 167.0 million (previous year: EUR 116.1 million). EBIT increased from EUR 74.2 million to EUR 92.5 million. This is equivalent to an EBITDA margin of roughly 30% and an EBIT margin of 16%. The Group’s net income after taxes amounted to EUR 14.4 million, compared to EUR 18.7 million in the previous year. All earnings figures are adjusted for lucky buy effects from acquisitions.

Operating cash flow after interest paid and interest subsidies received from the public sector amounted to EUR 23.3 million.

The Group’s equity capital increased to EUR 316.5 million in the fiscal year, up by close to 82% on the previous year’s EUR 174.3 million. The equity ratio climbed to 14.4% (31 December 2018: 12.9%).

The Management Board expects the dairy cow herd to grow to roughly 110,000 animals by the end of 2020. The raw milk output is expected to increase to approx. 1 million tonnes in the fiscal year 2020. The company projects revenues of between EUR 525 million and EUR 545 million and EBITDA of between EUR 180 million and EUR 200 million for the fiscal year 2020.

The Annual Report 2019 is published on the company website at https://www.ekosem-agrar.de/investor-relations/finanzpublikationen/.