Ekotechnika AG reports strong growth for financial year 2020/2021
26 January 2022 Corporate News
- Consolidated sales revenues climb 25% to EUR 243.6 million (previous year: EUR 193.8 million)
- Sales of new machines benefit from new John Deere sales territories and increased demand
- Operating result (EBIT) rises to EUR 21.3 million (previous year: EUR 5.6 million)
- Outlook: Further profitable growth expected
Walldorf, 26 January 2022 – Ekotechnika AG (Primary Market; ISIN: DE000A161234), the German holding company of the largest dealer of international agricultural machinery in Russia, today presented its 2020/2021 Annual Report, which again shows strong revenue and earnings growth. Consolidated sales revenues increased by 25% to EUR 243.6 million (previous year: EUR 193.8 million) in the past financial year 2020/2021 (30 September). At EUR 165.7 million (previous year: EUR 125.3 million), sales of new machines represented about 68% (previous year: about 65%) of total revenues. The good performance of this business segment is mainly attributable to the successful activity in the John Deere sales territories won in 2020 as well as the increased overall demand, which led to a very positive development especially in Siberia. A total of 403 tractors (previous year: 245) and 109 combines and forage harvesters (previous year: 117) were sold in the past financial year.
Spare parts business contributed about 24% (previous year: about 30%) to total sales revenues and improved slightly to EUR 58.6 million (previous year: EUR 57.4 million). In the Service segment, sales revenues in the financial year 2020/2021 amounted to EUR 4.9 million (previous year: EUR 4.5 million), while revenues generated from the sale of smart farming solutions more than doubled to EUR 2.8 million (previous year: EUR 1.3 million).
Gross profit was up by approx. 19% on the previous year (EUR 36.8 million) to EUR 43.7 million. Earnings before interest and taxes (EBIT) increased almost fourfold to EUR 21.3 million in the past financial year (previous year: EUR 5.6 million). Consolidated net income also rose sharply to EUR 14.2 million (previous year: EUR 1.7 million). On the one hand, the high increase in earnings is the result of a strong operating performance. The reversal of currency effects, which had adversely affected consolidated net income in the financial year 2019/2020, also made a positive contribution.
Group equity amounted to EUR 44.8 million as of 30 September 2021, an increase by approx. 63% compared to the prior year reporting date (30 September 2020: EUR 27.6 million). With total assets also up to EUR 146.3 million (30 September 2020: EUR 123.9 million), the Group’s equity ratio improved considerably to 30.6% (30 September 2020: 22.3%).
Stefan Dürr, CEO of Ekotechnika AG: “The fact that we upgraded our forecast several times reflects the dynamic development of our business in the past year. While the overall conditions for the Russian agricultural market were generally good, crop yields in the individual regions differed substantially last season. Demand for agricultural machinery also remains high, with a clear focus on high-tech and increased efficiency. On balance, we are very optimistic about the current financial year 2021/2022.”
In view of the good performance in the past financial year, the Executive Board and the Supervisory Board will propose to the Annual General Meeting to pay out the first dividend to the shareholders of Ekotechnika AG.
Bjoerne Drechsler, member of the Executive Board of Ekotechnika AG: “The first-time distribution of a dividend marks the beginning of our sustainable dividend strategy. In view of the constant positive business trend over the past years and the solid basis we have laid for continued corporate growth, we want to give our shareholders a successively growing share in the performance of Ekotechnika AG in the coming years.”
Based on conservative planning, the Ekotechnika management projects revenues of between EUR 255 million and EUR 280 million and gross profit of approx. EUR 45 million to EUR 55 million for the financial year 2021/2022. Earnings before interest and taxes (EBIT) are expected to come in at between EUR 15 million and EUR 20 million.
The full 2020/2021 consolidated financial statements are available on the website of Ekotechnika AG at https://www.ekotechnika.de/en/investor-relations/financial-publications/.
Ekotechnika AG, Walldorf, is the German holding company of the EkoNiva-Technika Group, the largest distributor of agricultural machinery in Russia. The main partner and principal supplier is John Deere, the world’s largest and market-leading manufacturer of agricultural machinery. Ekotechnika’s main business lies in selling new equipment such as tractors and combines but also soil tillage machines. In addition, the company sells spare parts, provides service and maintenance and offers its customers smart farming technologies. Founder and Chairman of the Executive Board of Ekotechnika AG 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 decades. Operating 25 locations in five attractive Russian farming regions, Ekotechnika today employs around 760 people and generated sales revenues of around EUR 244 million in 2020/21. The Ekotechnika stock is listed on the Primary Market of the Düsseldorf Stock Exchange (ISIN: DE000A161234) as well as 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: email@example.com