Ekosem-Agrar AG: Positive operational development in the first six months of 2023

Ekosem-Agrar AG: Positive operational development in the first six months of 2023

20 July 2023 Corporate News

  • Raw milk production increases by 6% to 619,000 tons
  • Milk processing segment reports significant growth of 77% to 127,900 tons due to optimized production processes
  • Harvesting work has started

Walldorf, 20 July 2023 - Ekosem-Agrar AG, the German holding company of Russian milk producer Ekoniva Group, has again recorded a positive operational development in the first half of 2023. The company produced a total of more than 619,000 tons of raw milk from January to June – an increase of 6% compared to the first half of last year. The average daily milk production in the reporting period was 3,422 tons (previous year: 3,216 tons). The increase in raw milk production is particularly due to the growth in daily output per dairy cow, which rose to 30.4 kg in the first half of 2023 (previous year: 29.0 kg). This improvement is mainly the result of an optimized herd structure and improved feed efficiency. The average number of cattle from January to June was 233,700 (previous year: 219,000 cattle), including 112,600 dairy cows.

In the milk processing segment, the Ekosem-Agrar Group achieved a particularly positive development in the first half of 2023. The production of finished dairy products grew by around 77% to approximately 127,900 tons. The largest part of this, 122,500 tons, was fresh milk and traditional dairy products. The production of yogurt and dessert products (including ice cream) increased by 63% to about 3,000 tons. Cheese production quadrupled to almost 2,400 tons. The significant growth in dairy processing is mainly a result of the ongoing modernization of the facilities and optimized production processes, which enable higher utilization of the facilities. The products range under the EkoNiva brand grew further in the first half of 2023 to now 87 products. In addition, the company is continuously expanding the distribution channels for dairy products. The total number of retail outlets selling Ekosem-Agrar Group products now stands at 56,400, up from 39,300 at the end of 2022.

In the crop farming segment, the Group started harvesting operations with more than 140,200 tons of dry matter feed harvested by the end of June. In total, the Group aims to produce more than 1 million tons of dry matter feed by the end of the year.

About Ekosem-Agrar

Ekosem-Agrar AG, Walldorf, is the German holding company of the Ekoniva Group, one of Russia’s largest agricultural companies. With a herd of more than 223,000 cattle (including over 112,000 dairy cows) and a milk output of 3,400 tons of raw milk per day, the company is the country's largest milk producer. The group controls an agricultural area of approximately 630,000 hectares and is also one of Russia's leading seed producers. The founder and CEO of the company is Stefan Dürr, who has been active in Russian agriculture since the late 1980s and has played a key role in its modernization over the past three decades. In 2009, he was awarded the Federal Cross of Merit for his services to the German-Russian agricultural dialogue. The group of companies has around 13,500 employees in nine administrative regions in Russia. Ekosem-Agrar generated a total output of EUR 616 million and EBITDA of EUR 190 million in fiscal 2020.

Ekosem-Agrar Contact

Irina Makey // Ekosem-Agrar AG // Johann-Jakob-Astor-Str. 49 // 69190 Walldorf // T: +49 (0) 6227 3585 919 // E: irina.makey@ekosem-agrar.de

Press / Investor Relations

Fabian Kirchmann, Jonas Schneider // IR.on AG // T: +49 (0) 221 9140 970 // E: presse@ekosem-agrar.de