DGAP-News

Ekosem-Agrar AG: Successful business trend in the first half of 2020 - Seite 2

Overall, 2020 is emerging to be a positive crop farming season. Especially the Kursk and Kaluga regions received sufficient precipitation and achieved good crop yields. The humid weather in the regions of Ryazan, Orenburg and Siberia ensured good harvest results, especially for wheat, and Siberia benefited from a warm spring, which meant that the growing season began earlier than normal. Prices for agricultural products also developed positively. For instance, good prices for grain and oilseeds were driven by low crop yields in some major exporting countries and strong demand from China. In addition, the weak ruble also had a positive effect on selling prices, as agricultural goods are traded in dollars and translated at the market rate.

Total output (revenue plus changes in the balances of fall-ploughed land and of agricultural produce and biological assets as well as other operating income) increased by an impressive 26% to EUR 336.0 million in the first half of 2020 (previous year: EUR 267.1 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 50% to EUR 132.8 million (previous year: EUR 88.4 million), with the EBITDA margin (EBITDA as a percentage of total output) thus standing at 39.5%. The operating result (EBIT) also improved significantly compared to the previous year (EUR 56.6 million) to EUR 89.2 million (+57%). The EBIT margin (EBIT as a percentage of total output) thus stood at 26.5%. Net profit for the period rose by 65% to EUR 38.3 million in the reporting period (previous year: EUR 23.2 million).

At EUR 2.2 billion as of 30 June 2020, total assets were almost at the same level as at the end of 2019. Financial liabilities including leasing liabilities totaled EUR 1.2 billion (31 December 2019: EUR 1.2 billion). Equity amounted to EUR 310.7 million as at the balance sheet date (31 December 2019: EUR 316.5 million). This is equivalent to an equity ratio of 14.4% (31 December 2019: 14.4%).

Stefan Duerr, Chairman of the Management Board of Ekosem-Agrar AG: "All in all, we are very satisfied with our performance in the first six months of 2020. Against the background of major economic uncertainties in connection with the coronavirus pandemic, our company and our industry have demonstrated to be crisis-proof. Our expansion course remains intact, although we have slowed down the pace somewhat in recent months."