Ekotechnika AG delivers good performance in FY 2017/2018
14 November 2018 Corporate News
- Sales revenues of more than EUR 160 million based on preliminary figures
- Preliminary earnings before interest and taxes (EBIT) exceed EUR 7 million
- Positive developments in all business segments
Walldorf, 14 November 2018 – Ekotechnika AG (Primary Market; ISIN: DE000A161234), the German holding company of the EkoNiva-Technika Group, the largest dealer of international agricultural machinery in Russia, again delivered a positive performance in FY 2017/18 (30 September). The Group generated sales revenues of more than EUR 160 million according to preliminary figures (previous year: EUR 148.1 million) as well as earnings before interest and taxes (EBIT) in excess of EUR 7 million (previous year: EUR 11.6 million); these results were clearly in line with the annual forecast upgraded in June 2018.
Following a drop in revenues in the New Machinery and Spare Parts segments in the first half of the year, which was primarily due to the late start of spring and the resulting delay in incoming orders, business picked up sharply as expected in the second half of the year.
This means that the good results of the past fiscal year are attributable to positive developments in all three business segments. In the New Machinery segment, which generates more than half of the company’s total revenues, Ekotechnika AG achieved satisfactory sales of 283 tractors (previous year: 241) and 68 combines / forage harvester (previous year: 58) – an increase by 17 % respectively. Revenues from the sale of spare parts also increased noticeably in the second half of the year remaining slightly below prior year level solely due to currency effects. The Service segment, which is the smallest business segment, also improved on the previous year.
“In spite of the adverse weather conditions at the beginning of the year, demand for our agricultural machinery picked up markedly in the second half of the year, making this a positive fiscal year at the bottom line,” said Bjoerne Drechsler, member of the Executive Board of Ekotechnika AG. “We defended our market-leading position in our regions and increased sales revenues for the fourth year in a row.”
Besides the expansion of the current business, the fiscal year 2018/2019 will primarily focus on efficiency improvements in the Service segment with maintenance contracts and better use of garage capacities. Furthermore, the company is placing special strategic emphasis on building up the new Smart Farming segment, which will strengthen customer retention and make the company fit for the digital future.
The Annual Report 2017/2018 of Ekotechnika AG will be published in January 2019.