Ekosem-Agrar: sales revenue up 60%, share capital down 50%
05 May 2020
Ekosem-Agrar AG, a German agroholding and a parent company of the Russia-based largest raw milk producer EkoNiva, posted sales revenue of €400 million in 2019, a 60% increase as compared to 2018. Total operating income rose 50% to €560 million, and EBITDA grew 40% to over €160 million within the same period. The key driver behind these results of Ekosem-Agrar is continuous and consistent expansion of its subsidiary EkoNiva, with raw milk production currently accounting for two-thirds of Ekosem-Agrar’s revenue. As of late 2019, Ekosem-Agrar reported daily milk output of 2,400 tonnes. For now, the Group maintains 103,475 dairy cows. In 2019, Ekosem-Agrar raised its total farmland area 19% to 599,000 hectares, as compared to 2018.
At the same time, Ekosem-Agrar’s share capital sank 50% during the first months of 2020. After a sharp 35%-decline in March 2020, the worth of the company’s shares is currently at the level -8.2% as compared to late 2019. The recent developments became the reason for initiating an extraordinary general meeting of Ekosem-Agrar’s shareholders, which is going to take place in the nearest future. The company’s management outlines that recent share capital decline will have no significant impact on the wellbeing of Ekosem-Agrar due to successful operations of its Russia-based subsidiary EkoNiva.