Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved by about 65% to approximately €115m ($129m).
Adjusted earnings before interest and taxes (EBIT) increased to approximately €70m (79m), compared to €44.5m ($50m) in the previous year, resulting in an EBIT margin of more than 18%.
The total dairy cow herd grew by 42% in the course of the year to over 133,000 animals at the end of 2018 (previous year: 93,500 animals). The group’s total raw milk output in the fiscal year 2018 amounted to 484,000 tons, up 62% on 2017. At the end of the year, the Group controlled an agricultural land area of approximately 504,000 hectares.
Stefan Dürr, CEO of Ekosem-Agrar AG, said, “In 2018, we have set the strategic course for the future. We are consistently pursuing our strategy of vertical integration and are successively expanding our milk processing capacities. In addition, we have successfully launched our EkoNiva umbrella brand for dairy products and receive a lot of positive feedback on our high-quality products every day. This encourages us on our way of establishing EkoNiva as Russia’s first integrated manufacturer of high-quality dairy products with nationwide coverage.”
Ekosem-Agrar said it will continue to expand its herd and its milk production, accompanied by the systematic expansion of milk processing.
The company said by the end of 2019, the number of dairy cows in the herd will probably exceed 100,000, with an annual milk output of more than 800,000 tons. This growth is largely based on the investments already started in 2018.