DGAP-News

Ekosem-Agrar clearly boosts its profits in 2014

DGAP-News: Ekosem-Agrar GmbH / Key word(s): Final Results
Ekosem-Agrar clearly boosts its profits in 2014

30.06.2015 / 19:48

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Ekosem-Agrar clearly boosts its profits in 2014

- Consolidated net income up from EUR 2.1 million to EUR 17.4 million

- EBITDA climb 52% to roughly EUR 65 million

- Equity position adversely affected by considerable exchange rate
effects

- Strong increase in milk production: 153,700 tons (+28 %)

- Positive outlook for 2015

Walldorf, 30 June 2015 - Ekosem-Agrar GmbH, the German holding company of
Russian milk producer Ekoniva Group, today published its consolidated
financial statements for the financial year 2014. In spite of the
considerable exchange rate effects resulting from the negative trend of the
rouble, the Group clearly boosted its result for the year at all levels.
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
reached EUR 64.8 million, up 52%. At EUR 44.5 million, earnings before
interest and taxes were up by 93% on the previous year. Consolidated net
income amounted to EUR 17.4 million, compared to EUR 2.1 million in the
previous year. The positive business trend was primarily driven by the milk
production activities. Total output (revenues plus finished goods and
unfinished products, biological assets as well as other operating income),
which is an important performance indicator in the agricultural sector,
rose by 12% to EUR 156.5 million. Sales revenues climbed 14% to roughly EUR
98 million.

Says Stefan Dürr, main shareholder and Managing Director of Ekosem-Agrar
GmbH: "The financial year 2014 has shown that our business model is solid
and crisis-resistant even in an extremely adverse market environment. The
volume and productivity growth in the milk segment and the high price
level, which is based on world market prices, more than offset negative
exchange rate effects and clearly exceeded our revenue and earnings
targets. The higher production efficiency means we are excellently
positioned also for market phases characterised by lower milk prices."

Thanks to this growth, the Group further expanded its position as Russia's
leading raw milk producer in 2014. Sales revenues in the milk production
segment increased by 35% to EUR 64.1 million. The dairy cow herd was
expanded by 14% from 19,300 to 22,000 animals last year. The milk output