Ekosem-Agrar AG presents preliminary figures for 2020
Sales revenues increased by 15% in the past fiscal year and will amount to about €464m/$558m (previous year: €402.7m/$484.3m). Denominated in rubles, sales revenues increased by approximately 31%. Earnings before interest, taxes, depreciation and amortization (EBITDA) will be between €180m ($216.5m) and €200m ($240.5m), at or above the upper end of the forecast range of €165m ($198.5m) to €185m ($222.5m). The final consolidated figures and annual report will be published on May 17, 2021.
The positive operating performance of the fiscal year 2020 also continued in the first three months of 2021. Sales revenues in the seasonally weakest quarter totaled around €111m ($133.5m). This corresponds to the prior year level for currency-related reasons; on a ruble basis, the company’s revenues were up by 20% on the prior year period.
Stefan Dürr, chairman of the management board of Ekosem-Agrar AG, said, “We are pleased that we were able to continue the good performance of the fiscal year 2020 in the first three months of 2021. Our meanwhile 41 state-of-the art dairy cow facilities have achieved a very good coverage in our core regions.
“This year will see us further increase the efficiency of all facilities recently taken into operation; only two more plants are currently under construction. Accordingly, the higher capacity utilization of the plants that came on stream in 2019 and 2020 will clearly have a positive impact on our cash flow. At the same time, we are successively increasing our milk processing capacities to come closer to our medium-term goal of processing the entire raw milk we produce internally.”
The slower expansion of the dairy cow facilities will also help to reduce personnel expenses, which will already be reflected in the 2021 balance sheet, as much fewer employees will be needed, particularly in the area of building and construction.
The board expects total output for the fiscal year 2021 to increase to €725m ($872m) to €750m ($902m). Sales revenues are expected to come in at between €615m ($740m) and €625m ($752m), with EBITDA projected to amount to between €250m ($301m) and €275m ($331m). The share of cash EBITDA will increase disproportionately as the IFRS-typical non-cash valuation effects will be reduced due to the slowed-down growth.