Ekotechnika AG shows more stable business performance in Q1 2015/2016

Ekotechnika AG shows more stable business performance in Q1 2015/2016

14 April 2016 Corporate News

  • Sales revenues climb to EUR 22.9 million (+20 %)
  • EBIT improves to EUR -0.1 million (previous year: EUR -7.2 million)
  • Positive equity after debt-equity swap (equity ratio: 12.7 %)
  • First ordinary Annual General Meeting in Mannheim

Walldorf, 14 April 2016 – The Management Board of Ekotechnika AG (primary market; ISIN: DE000A161234), the German holding company of the EkoNiva-Technika Group, the largest dealer of international agricultural machinery in Russia, will inform the shareholders about the past financial year 2014/15 (30 Sept.), the preliminary figures for the first three months of 2015/16 (1 Oct. to 31 Dec. 2015) and the current operating performance at today’s Annual General Meeting in Mannheim.

In the first quarter of the current financial year, Ekotechnika AG generated consolidated sales revenues of EUR 22.9 million, up 20 % on the same period of the previous year (EUR 19 million). The increase in the Group’s sales revenues is attributable to a considerable recovery in sales of agricultural machinery and the continued strong replacement parts business. The political and economic situation in Russia remains tight, however. Geopolitical factors such as the unresolved Ukraine crisis and the sanctions as well as economic factors such as the low oil price and the high interest rates in Russia continue to have a strong impact on the entire industry. Although Russian farmers have significant investment requirements, this leads in combination with the greater support of local technology to the spending restraint.

With the cost base having been adapted to the reduced market and revenue expectations and the significant decline of currency losses, Ekotechnika AG‘s earnings before interest and taxes (EBIT) improved from EUR -7.2 million to EUR -0.1 million in the first quarter of 2015/2016. Preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 0.4 million in the reporting period (previous year: EUR -6.5 million). Consolidated net income before taxes increased from EUR 18.1 million to EUR 58.5 million. The improvement is attributable to the debt-to-equity swap completed in December, which resulted in a positive one-time effect of over EUR 60 million. Adjusted for this effect, the company posted a loss of approx. EUR 1.9 million, which is very satisfying for a first quarter due to the extreme seasonality. The capital restructuring also resulted in positive equity of approx. EUR 8.9 million as of 31 December 2015. This is equivalent to an equity ratio of approx. 12.7 %.

Says Stefan Dürr, main shareholder and CEO of Ekotechnika AG: “The framework conditions for the agricultural machinery business in Russia remain challenging, although the developments of the past months give reason for optimism. Now that we have completed the operational and financial restructuring, we have a capital and cost base which will support our business operations in the long term also under adverse market conditions. With the support of our shareholders, we have thus got Ekotechnika AG back on track.”

The first ordinary Annual General Meeting of Ekotechnika AG will be held today, 14 April 2016, at Congress Center Rosengarten in Mannheim. For more information, visit www.ekotechnika.de/investor-relations/hauptversammlung/.