Ekosem-Agrar announces preliminary operating figures for FY 2021 and current business performance
6 May 2022 Corporate News
- Continued revenue and earnings growth in 2021
- Operating performance in Q1 largely stable; spring sowing a critical milestone with minor qualifications
- Further developments subject to uncertainty
Walldorf, 6 May 2022 – According to preliminary figures, Ekosem-Agrar AG, the German holding company of Russian milk producer Ekoniva Group, generated sales revenues of EUR 583 million in the financial year 2021, up 26% on the previous year (previous year preliminary: EUR 464 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) amounted to EUR 653 million (previous year preliminary: EUR 616 million). The greatly reduced share of these changes in the increased total output shows that cash flow generation has increased noticeably due to the growing number of operating dairy farms. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached approx. EUR 190 million (previous year preliminary: EUR 195 million). Preliminary cash EBITDA (EBITDA minus non-cash effective change in fair value) more than doubled from EUR 74 million to approx. EUR 160 million.
As published at the beginning of March, the company’s auditor, Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, has announced that the audit of the 2020 financial statements cannot be completed for the time being due to the current political and economic uncertainty. The same therefore also applies to the consolidated financial statements for 2021. Consequently, all figures communicated for 2020 and 2021 are still preliminary and unaudited. The operating figures will not change materially from today’s perspective. With regard to any valuation adjustments that may become necessary due to external circumstances, the completion of the respective audit must be awaited; the company is in close dialog with the auditor in this respect.
Stable operating performance in Q1 2022
In the company’s largest business area, dairy farming, further dairy cow facilities are being completed following the general agreement reached with the Russian RSHB Bank. Milk output in the first quarter of 2022 increased by just under 6% to 287,113 tons. Average annual raw milk output rose from 3,016 tons in the first quarter of 2021 to 3,190 tons in the first quarter of 2022. The average number of dairy cows amounted to 112,406 animals in the first quarter (year-end 2021: 112,807; Q1/2021: 106,789), while the total herd increased to approx. 220,126 animals (year-end 2021: 219,325; Q1/2021: 205,340). In the crop farming segment, spring sowing has been largely satisfactory to date in spite of the considerable challenges in terms of logistics and a partial lack of input materials. In the youngest business area, milk processing, the volume of dairy products sold was up by 29% on the prior year period to 36,498 tons in the first quarter. The loss of customers in the hospitality sector has so far been offset by stronger demand from the retail sector.
Stefan Dürr, Chairman of the Management Board and main shareholder of Ekosem-Agrar AG: “The operating performance in the first quarter of 2022 is largely stable. The whole team has done a fantastic job over the past weeks in coping with the constantly changing conditions. Due to the importance of our company, we have received extensive support from the government.”
Wolfgang Bläsi, CFO of Ekosem-Agrar AG: “In spite of the currently stable operating performance, there are considerable uncertainties with regard to further economic developments in the next 24 months. In our opinion, the economic framework data do not adequately reflect the existing risks. Under the current circumstances, the range and reliability of forecasts are extremely limited and we do not expect this to change much in the foreseeable future. Against this background, we consider the steps proposed in the invitations to the noteholders’ meetings to be indispensable. The numerous talks we have had with a large number of noteholders show that most of them understand and approve these steps.”
Ekosem-Agrar AG, Walldorf, is the German holding company of the Ekoniva Group, one of the largest Russian agricultural companies. A herd of more than 210,000 cattle (thereof over 112,000 dairy cows) and a daily output of approx. 3,200 tons of raw milk make the company the largest milk producer in the country. The Group controls an agricultural land area of approx. 630,000 hectares and is also one of the leading Russian seed producers. The founder and CEO of the company is Stefan Dürr, who has been active in the Russian agricultural sector since the end of the 1980s and has been instrumental in modernizing the industry in the past three decades. In 2009, he was awarded the Order of Merit of the Federal Republic of Germany in recognition of his contributions to the German-Russian Dialogue on Agriculture. The Group employs some 12,000 people and has a presence in nine administrative areas in Russia. Ekosem-Agrar generated a total output of EUR 565 million and adjusted EBITDA of EUR 167 million in 2019.
Irina Makey // Ekosem-Agrar AG // Johann-Jakob-Astor-Str. 49 // 69190 Walldorf // T: +49 (0) 6227 3585 919 // E: email@example.com
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Fabian Kirchmann, Anna-Lena Mayer // IR.on AG // T: +49 (0) 221 9140 970 // E: firstname.lastname@example.org