Ekosem-Agrar publishes final consolidated figures for 2018 – Net income climbs to EUR 18.7 million
- Significant increase in sales revenues and earnings
- Consolidated net income up by an impressive 149% to EUR 18.7 million
- Profitable growth to continue in 2019
- Revenues of EUR 380 million to EUR 410 million forecast for 2019 (+ >55%)
- Bond issue and exchange offer for ESA bond I planned
Walldorf, 24 June 2019 - Ekosem-Agrar GmbH, the German holding company of Russian milk producer Ekoniva Group, achieved even slightly higher key revenue and earnings figures for the fiscal year 2018 than the preliminary figures published in early June 2019. Revenues climbed 40% to EUR 244.9 million (previous year: EUR 174.6 million). Total output (revenue plus changes in the balances of fall-ploughed land and of agricultural produce and biological assets as well as other operating income) adjusted for one-time “lucky buy” effects from acquisitions rose significantly by about 74% to EUR 376.5 million (previous year, adjusted: EUR 216.8 million). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved by about 67% to approx. EUR 116,1 million (previous year, adjusted: EUR 69.5 million). This is equivalent to an EBITDA margin of 31%. Adjusted earnings before interest and taxes (EBIT) increased to EUR 74,2 million, compared to EUR 44.5 million in the previous year, resulting in an EBIT margin of close to 20%. Adjusted consolidated net income soared by 149% from EUR 7.5 million to EUR 18.7 million.
“The year 2018 has shown that we have reached a size and cost structure that allow us to successfully manage negative influences such as low raw milk prices on the earnings side,” said Stefan Dürr, Chief Executive Officer of Ekosem-Agrar AG. “This is all the more true as we are gradually expanding our value chain by setting up our own dairies. This enables us to tap additional revenue and earnings potential and reduce the influence of price fluctuations in the raw milk market. It remains our objective to position the Ekosem-Agrar Group as Russia’s first fully integrated producer of dairy products with almost nation-wide coverage.”
Supported by what remain excellent growth conditions for milk production, Ekosem-Agrar AG will continue to expand its herd and its milk production in 2019, accompanied by the systematic expansion of milk processing. The Group is currently building a total of 15 dairy cow facilities with a combined capacity for roughly 50,000 dairy cows in seven Russian regions. All facilities are subject to the Russian government’s subsidization program of non-repayable subsidies and low-interest investment loans and are almost fully financed.
By the end of 2019, the dairy cows herd is expected to exceed 100,000 animals, with an annual milk output of over 800,000 tons in 2019. Based on the developments described above, the company’s Management Board projects sales revenues of EUR 380 million to EUR 410 million for the current fiscal year.
Total assets increased from around EUR 940 million at the end of the last fiscal year to EUR 1.36 billion on 31 December 2018. This is primarily attributable to the strong expansion of raw milk production through the construction of further dairy cow facilities. Financial liabilities, which mainly comprise subsidized bank loans, amounted to around EUR 808 million (31 December 2017: EUR 554.3 million). Equity capital climbed from EUR 165.0 million to close to EUR 175 million. This is equivalent to an equity ratio of 12.9% (31 Dec. 2017: 17.5%).
