Ekosem-Agrar, the Germany-based holding company which has significant milk producing operations in Russia, has posted preliminary earnings (EBITDA) of between €50m and €55m for its 2015 financial year. This represents a decline from the €65m in earnings posted for 2014.
Sales for the year were on par with the previous year at €100m in reported terms. However, the depreciation of the Russian currency means that underlying sales actually grew by more than 30% as a result of higher output in 2015.
Over the 12 months, Ekosem increased the size of its dairy herd in Russia by 14% to 25,000 cows which in turn helped to increase milk output by 17%, or more than 26,000t year-on-year. Ekosem is the largest milk producer in Russia and has been expanding production in recent years which is contrary to the national trend in Russia, which has been one of declining output.
Ekosem’s dairy operations, which account for about 60% of total group turnover, recorded sales of more than €60m for 2015. The division’s performance was in line with the previous year despite the downturn in global dairy prices.
Crop seeds
In total, Ekosem farms more than 196,000ha across six locations in Russia. The group is one of the leading producers of crop seeds in Russia and also has significant beef operations with an additional 30,000 head of cattle.
Stefan Durr, managing director of Ekosem-Agrar, described the results as a solid basis from which the group can complete its investment programme in the expansion of its dairy facilities.
“Our earnings figures show that we achieved very decent results in times of global milk price lows, record lows of the rouble exchange rate and difficult financing conditions in Russia,” added Durr.
Sales for the year were on par with the previous year at €100m in reported terms. However, the depreciation of the Russian currency means that underlying sales actually grew by more than 30% as a result of higher output in 2015.
Over the 12 months, Ekosem increased the size of its dairy herd in Russia by 14% to 25,000 cows which in turn helped to increase milk output by 17%, or more than 26,000t year-on-year. Ekosem is the largest milk producer in Russia and has been expanding production in recent years which is contrary to the national trend in Russia, which has been one of declining output.
Ekosem’s dairy operations, which account for about 60% of total group turnover, recorded sales of more than €60m for 2015. The division’s performance was in line with the previous year despite the downturn in global dairy prices.
Crop seeds
In total, Ekosem farms more than 196,000ha across six locations in Russia. The group is one of the leading producers of crop seeds in Russia and also has significant beef operations with an additional 30,000 head of cattle.
Stefan Durr, managing director of Ekosem-Agrar, described the results as a solid basis from which the group can complete its investment programme in the expansion of its dairy facilities.
“Our earnings figures show that we achieved very decent results in times of global milk price lows, record lows of the rouble exchange rate and difficult financing conditions in Russia,” added Durr.