Russia’s Ekoniva warns on 'uncertain' outlook after 2021 sales spike
The Russian milk producer generated sales of €585m in FY 2021, up from €464m in the prior period. Cashflow was driven by ‘the growing number of operating dairy farms’, the company revealed. EBITDA slipped to €190m in the year, compared to €195m in fiscal 2020.
‘Stable’ start to 2022 but 'uncertainty' awaits
Commenting on the first quarter of 2022, Ekosem-Agrar revealed a ‘stable’ start to the year, with milk output up by just under 6%.
In 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, the company revealed.
“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,” said Stefan Dürr, Chairman of the Management Board and main shareholder of Ekosem-Agrar.
However, Ekosem-Agrar finance chief Wolfgang Bläsi warned of uncertainty ahead. “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.”
The company’s auditor, Ernst & Young, has announced that the audit of the 2020 financial statements cannot be completed for the time being due to political and economic uncertainty. The same also applies to the consolidated financial statements for 2021, the holding company noted. All figures communicated for 2020 and 2021 are still preliminary and unaudited.
