DGAP-News

Ekotechnika boosts half-year sales to EUR 70 million

DGAP-News: Ekotechnika GmbH / Key word(s): Half Year Results
Ekotechnika boosts half-year sales to EUR 70 million

27.06.2013 / 12:07

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Ekotechnika boosts half-year sales to EUR 70 million

- Strong increase in sales in the traditionally weaker first half-year
(1 October 2012 - 31 March 2013)
- Earnings before interest and taxes (EBIT) of EUR 2.9 million (+22%)
- Negative net result due to seasonal inventory build-up

Walldorf, 27 June 2013 - Ekotechnika GmbH, the German holding company of
Russia's largest dealer of international agricultural machinery, the
Ekoniva-Technika Group, increased its sales revenues significantly in the
first six months of 2012/13 (31 March). Revenues climbed by 46% to EUR 69.8
million. Reasons for the sharp rise in sales included better market
penetration in the sales territory as well as good operating conditions
thanks to persistently high prices for agricultural products. The sale of
agricultural machinery accounted for approximately 85% of the total
revenues. Revenues of approx. EUR 8.6 million were generated from the sale
of spare parts, while the Service and Other Revenues segment contributed
about EUR 2.1 million. The 50% increase in service revenues reflects the
growing importance of this business segment, which is characterised by high
margins.

At EUR 2.9 million, the Group's earnings before interest and taxes (EBIT)
were up by 22% on the prior year period. Due to seasonal factors, the net
result for the first six months remained negative at EUR -4.6 million
(previous year: EUR 0.6 million). The moderately positive result of the
previous year is primarily attributable to exchange rate effects. In the
Russian agricultural machinery trading sector, the period from October to
March is characterised by a build-up of inventories for weather-related
reasons. These inventories are then sold in the second half of the fiscal
year starting April. This year, business picked up later than usually due
to the long winter. In spite of the negative net result the operating cash
flow was clearly positive at EUR 16.6 million as of the reporting date.

Says Wolfgang Bläsi, Managing Director of Ekotechnika GmbH: 'The framework
conditions for the agricultural machinery business in Russia will remain
positive. The EUR 60 million bond issue in April has optimised our
financing structure and helps us accelerate our growth through the opening
of new locations and the expansion of our spare parts and service
activities.'

The ongoing modernisation of Russia's agricultural sector and the