Ekotechnika AG confirms positive performance in first half of 2018/2019
28 June 2019 Corporate News
- Group sales revenues of EUR 51.8 million (+15%)
- Growth continues in all business segments
- Increase in EBITDA (EUR 2.8 million; +79%) and EBIT (EUR 1.8 million; +163%)
- Major shareholder Markus Pfitzke reports more than 25% shareholding
Walldorf, 28 June 2019 – Ekotechnika AG (Primary Market; ISIN: DE000A161234), the German holding company of the EkoNiva-Technika Group, the largest dealer of international agricultural machinery in Russia, has confirmed the preliminary figures for the first six months of the financial year 2018/2019 (30 September) published in early June 2019. Total sales revenues picked up by roughly 15% to EUR 51.8 million (previous year: EUR 45.3 million) in the seasonally weaker first half of the year.
Although the ruble, at an average 75.55 per euro, was slightly weaker than in the previous year (RUB/EUR 69.32), which increased the prices of imported agricultural machinery compared to Russian manufacturers, sales revenues from new machinery sales rose significantly by approx. 22% from EUR 24.9 million in the first half of 2017/2018 to EUR 30.4 million in the reporting period 2018/2019. Revenues from the sale of spare parts amounted to EUR 17.0 million (previous year: EUR 16.6 million; +2%), while revenues in the service segment (EUR 1.5 million; previous year: EUR 1.4 million) and in the smart farming segment (EUR 148 thousand; previous year: EUR 139 thousand) rose by 6% each.
Stefan Dürr, CEO of Ekotechnika AG: “The new machinery segment recorded a significant increase in sales revenues compared to the weak prior-year period. The government is discussing amendments to the subsidy scheme, which might have a positive effect on our sales of imported machinery. At the same time, we are continuously working to stabilize our sales revenues by successively expanding our after-sales business"
Gross profit rose by 14% to EUR 10.0 million (previous year: EUR 8.8 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) of Ekotechnika AG came in at EUR 2.8 million in the first six months of the financial year (previous year: EUR 1.5 million), while earnings before interest and taxes (EBIT) more than doubled to EUR 1.8 million, compared to EUR 0.7 million in the same period of the previous year. This increase is essentially due to the higher gross margin. After a loss of EUR 0.4 million in the first half of 2017/2018, the result for the period was positive again at EUR 0.6 million.
As of the reporting date 31 March 2019, the Group’s equity amounted to EUR 25.8 million (30 September 2018: EUR 24.3 million). The equity ratio amounted to 22% (30 September 2018: 22%).
Major shareholder Markus Pfitzke reports more than 25% shareholding
In June 2019, long-time Ekotechnika shareholder Markus Pfitzke informed the company in a notification pursuant to Section 20 (1) sentence 1 AktG that he holds more than 25% of the shares of Ekotechnika AG. The Executive Board and the Supervisory Board welcome Mr. Pfitzke’s investment, who is a reliable anchor investor with a long-term investment horizon.
“I have continuously expanded my financial investment in Ekotechnika AG in recent years as I am convinced of the positive future prospects of the company in the Russian market for agricultural machinery,” said Markus Pfitzke.
The full report on the first six months of 2018/19 is available on the website of Ekotechnika AG at www.ekotechnika.de/en/investor-relations/financial-publications/ .
Walldorf-based Ekotechnika AG is the German holding company of the EkoNiva-Technika Group, the largest distributor of agriculture equipment in Russia. The company’s most important supplier is John Deere, the world’s leading manufacturer in this field. Ekotechnika’s main business lies in selling new equipment such as tractors and combines but also soil tillage machines and precision farming technology. In addition, the company sells spare parts, provides service and maintenance and entered the forestry machinery market at the end of 2018. Ekotechnika’s founder and chairman of the Executive Board is Stefan Dürr, who has been active in the Russian farming sector since the late eighties and has been instrumental in its modernization over the past two decades. In 2011, the equipment business was separated from the farming business, which now operates independently under the name Ekosem-Agrar. Operating 12 locations in attractive Russian farming regions, Ekotechnika today employs around 550 people and generated sales of around EUR 164 million in 2017/2018. The Ekotechnika stock has been listed on the Primary Market of the Düsseldorf Stock Exchange since December 2015 (ISIN:DE000A161234) and, since September 2018, also on the Open Market of the Frankfurt Stock Exchange.
Press / Investor Relations
Fabian Kirchmann, Anna-Lena Mayer // IR.on AG // T: +49 (0) 221 9140 970 // E: firstname.lastname@example.org