DGAP-News

Ekosem-Agrar reports solid revenue and earnings growth for H1 2016

DGAP-News: Ekosem-Agrar GmbH / Key word(s): Half Year Results
Ekosem-Agrar reports solid revenue and earnings growth for H1 2016

30.09.2016 / 07:45
The issuer is solely responsible for the content of this announcement.

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Ekosem-Agrar reports solid revenue and earnings growth for H1 2016

- Sales revenues in EUR up 11%; total output up 9% on previous year

- Milk output up by over 25% to an average 600 t per day

- Earnings before interest and taxes (EBIT) rise sharply to EUR 19.4
million (+37%)

- Positive operating cash flow of EUR 5.0 million (previous year: EUR
-7.9 million)

- Revenue and earnings forecast for 2016 confirmed

Walldorf, 30 September 2016 - Ekosem-Agrar GmbH, the German holding company
of Russian milk producer Ekoniva Group, increased both its sales revenues
and earnings in the first half of 2016, although global milk prices
remained low. The solid growth is attributable to the sharp increase in
milk production and the positive performance of the crop farming segment.

At approx. EUR 48.1 million, sales revenues in euros were up by 11% on the
prior year period. In exchange rate adjusted terms, i.e. based on the
average RUB exchange rate of the previous year, sales revenues rose by
approx. 35%, primarily because of the much higher milk output. Sales
revenues of the milk production segment, which account for a good 71% of
total revenues, amounted to over EUR 34 million, up by approx. 9% on the
previous year in spite of the low milk prices in the world market. In
exchange rate adjusted terms, sales revenues from milk production increased
by a good 32%. The crop farming segment's sales revenues amounted to EUR
6.9 million (previous year: EUR 6.5 million), while revenues from other
animal products totalled EUR 6.5 million (previous year: EUR 4.5 million).

Total output (revenue plus changes in balances of fall-ploughed land as
well as changes in balances of biological assets and agricultural produce
and other operating income) stood at EUR 71.5 million (previous year: EUR
65.5 million). Total output and further figures of the prior year period
were adjusted with regard to changes in the valuation of bearer plants in
accordance with IAS 16 and IAS 41. Earnings before interest, taxes,
depreciation and amortisation (EBITDA) amounted to EUR 27.8 million (+18
%). Accordingly, the EBITDA margin reached 39% (previous year: 36%).
Earnings before interest and taxes (EBIT) totalled EUR 19.4 million (+37%),
which is equivalent to an EBIT margin of 27% (previous year: 22%). At EUR