EkoNiva increased its revenue and profit in the first half of the year, and lowered its forecast for milk production in 2020
EBITDA of the company increased by 50% to 132.8 million euros, and EBIT increased by 57% to 89.2 million euros. Net profit jumped by 65% to 38.3 million euros.
‘We are very happy with the results for the first six months of 2020. In the face of significant economic uncertainty due to the coronavirus pandemic, our company and the industry as a whole have demonstrated resistance to the crisis. Our expansion plans remain unchanged, although in the last few months we have slowed down the pace of development somewhat,’ said the main owner and Chairman of the Board of Ekosem - Agrar, Stefan Duerr (quoted in the message).
Taking into account the slowdown in the expansion of the dairy business, the company adjusted its forecasts for 2020. Now it expects that the production of raw milk by the end of the year will be 900-940 thousand tons, and not 1 million tons, as previously predicted. The number of dairy cattle at the end of the year will be 105 thousand animals (previous forecast - 110 thousand heads). It is planned to send 85-90 thousand tons of milk for processing in 2020.
Ekosem-Agrar Management also predicts that the sales of the company by the end of 2020 will amount to 480-500 million euros, EBITDA - 165-185 million euros, EBIT - 85-105 million euros. EkoNiva group, owned by Ekosem-Agrar, is the largest producer of raw milk in Russia. At the end of 2019, milk production amounted to 758 thousand tons. The strategy of the company involves the expansion of milk processing and production of dairy products in the B2C segment.
According to the results of the first half of the year, EkoNiva increased the production of raw milk by 30% compared to the indicator for the first half of 2019, to 456 thousand tons. The number of dairy cattle increased to 102.4 thousand from 97.6 thousand at the end of last year. The company expanded the land bank to 631 thousand hectares.
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