Ekotechnika AG publishes consolidated financial statements for FY 2014/15
1 February 2016 Corporate News
- Preliminary Group figures essentially confirmed
- Financial year influenced by crisis-related restructuring
- Group sales revenues of EUR 109 million (previous year: EUR 171 million)
- EBIT of EUR -1.2 million (previous year: EUR +1.9 million)
Walldorf, 1 February 2016 – Ekotechnika AG, the German holding company of the EkoNiva-Technika Group, the largest dealer of international agricultural machinery in Russia, generated sales revenues of EUR 109 million in the past financial year 2014/15 (30 September). This represents a decline by approx. 36% compared to the previous year. The figures of the consolidated financial statements are essentially identical with the preliminary figures published in November 2015. The drop in sales revenues is attributable to lower demand for agricultural machinery, which, in turn, is due to the sharp rise in financing costs resulting from the economic crisis in Russia. By contrast, the spare parts business showed a positive trend, as Russian farmers increasingly invest in the repair of their existing machinery due to the lack of financing options.
Ekotechnika has responded to the weaker environment and initiated the financial reorganisation of the company in spring 2015 in order to support the operational restructuring exercise that had already been underway at the time. This included a headcount reduction by approx. 21%, efficiency enhancing measures as well as a debt-to-equity swap to strengthen the equity base, which was completed in November 2015
Just like the reduced revenues and the restructuring expenses, the sharp decline in the RUB/EUR exchange rate also had an impact on the Group’s 2014/15 figures. At EUR -1.2 million, earnings before interest and taxes (EBIT) were down on the previous year’s EUR 1.9 million. Consolidated net income amounted to EUR -26.6 million, compared to EUR -27 million in the previous year and includes exchange losses of approx. EUR 16.9 million as well as one-time restructuring expenses of approx. EUR 1.6 million. As of the balance sheet date on 30 September 2015, Group equity was still negative (EUR -59.2 million) on total assets of EUR 76.7 million. In the meantime, however, this item has improved by approx. EUR 70 million as a result of the debt-to-equity swap completed in November 2015 and the cash capital increase. The company expects business to stabilise in the current financial year 2015/16 (30 September), although the general conditions in Russia are unlikely to improve notably in the near future.
The full 2014/15 consolidated financial statements will soon be available on the website of Ekotechnika AG at www.ekotechnika.de/en/investor-relations/.