22.06.2018
Ekotechnika AG DE000A161234
DGAP-News: Ekotechnika AG publishes interim financial statements for 2017/2018
DGAP-News: Ekotechnika AG / Key word(s): Interim Report
Ekotechnika AG publishes interim financial statements for 2017/2018
22.06.2018 / 10:00
The issuer is solely responsible for the content of this announcement.
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Ekotechnika AG publishes interim financial statements for 2017/2018
* Sales revenues down 18% to EUR 45.3 million due to late spring
* Shift in revenues to the following period
* EBIT at EUR 0.7 million (previous year: EUR 3.7 million)
* Full-year outlook: Group's revenues to end higher than planned, slightly
above previous year's level
Walldorf, 22 June 2018 - In the first half of the financial year 2017/18 (31
March), Ekotechnika AG (Primary Market; ISIN: DE000A161234), the German
holding company of the EkoNiva-Technika Group, the largest dealer of
international agricultural machinery in Russia, recorded a decrease in sales
revenues of almost 18% to EUR 45.3 million (previous year: EUR 55.2
million). The main reason for the decline was that due to the late spring of
this year and the high seasonality of revenue, some of the revenues came in
later than expected. The management of the company had forecast such a
challenging and competitive market, so the development is in line with the
planning. As always, sales of agricultural machinery made the largest
contribution to sales revenues with 55% (previous year: 60%), but decreased
by 25% to EUR 24.9 million (previous year: EUR 33.1 million) mainly due to
the late start of spring already mentioned. Revenues from the sale of spare
parts declined by 11% to EUR 16.6 million (previous year: EUR 18.6 million),
which represented 37% of total revenues in the first half of 2017/18
(previous year: 34%). The service segment generated revenues of EUR 1.4
million (previous year: EUR 1.1 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) of
Ekotechnika AG amounted to EUR 1.5 million in the first half of 2017/18
(previous year: EUR 4.6 million). Earnings before interest and taxes (EBIT)
fell from EUR 3.7 million in the prior year period to EUR 0.7 million. At
EUR -382 thousand, the result for the period was slightly negative compared
to the prior year at EUR 2.4 million. Equity capital was clearly positive at
EUR 20.2 million as of the interim reporting date 31 March 2018 (30
September 2017: EUR 21.0 million), the equity ratio was 20% (30 September
2017: 25%).
Considering the high level of competition due to sanctions and the advantage
of local producers receiving subsidies, the first half of 2017/18 showed a
decline compared to the very good same period last year. Some of the
company's orders were merely postponed to a later date (April or May).
Together with the renewed rise in crude oil prices and the continued
stabilization of the Russian economy, the ruble stabilized at an average
exchange rate of RUB/EUR 69.32 during the reporting period, which improved
the competitiveness of imported agricultural machinery compared to
Russian-manufactured machinery. The improved economic situation in Russia,
with inflation falling to 2.1% and the central rate at 7.25%, improved
credit conditions for the Ekotechnika's clients. Nevertheless, the market
continues to be dominated by local suppliers, whose prices are significantly
lower than those of importers due to government subsidies. Despite these
difficult conditions, the Group is the clear market leader in the regions it
represents and operated in line with the management expectations in the
first half of 2017/18 financial year.
The Group is currently further developing its smart farming business to
enable its customers to increase their efficiency and profits and sees this
technology as a success factor for the future.
Says Stefan Dürr, member of the Management Board of Ekotechnika AG: "Due to
the difficult market situation we had assumed a stronger decline in business
activity, but were able to avert this by consistent and close cooperation
with our clients. We are therefore satisfied with the course of business in
the first half of 2017/18, both for new machinery and spare parts. The
decline in sales revenues is in line with our expectations and will be
compensated by the postponement of transactions into the next periods of the
financial year."
Bjoerne Drechsler, member of the Management Board of Ekotechnika AG adds:
"In the first six months of the financial year, we continued to work on the
improvement of our internal structure, thus optimizing our processes and
further reducing administrative expenses. In addition, we focused our
attention on a solution-oriented business and actively expanded the smart
farming area."
Due to the pickup in orders from key customers the management expects the
decline in revenues to be reversed for the full year and the Group's
revenues to end higher than planned - amounting to EUR 150 million, which is
slightly above previous year's level. Regarding EBIT the management
forecasts more than EUR 7 million for FY 2017/2018.
The full interim report on the first six months of 2017/18 is available on
the website of Ekotechnika AG at
https://www.ekotechnika.de/en/investor-relations/documents.html.
About Ekotechnika
Walldorf-based Ekotechnika AG is the German holding company of the
Ekoniva-Technika Group, the largest distributor of agriculture equipment in
Russia. The company's single most important supplier is John Deere, the
world's leading manufacturer in this field. Ekotechnika's main business lies
in selling new equipment such as tractors and combines but also soil tillage
machines and precision farming technology. In addition, the company sells
spare parts and provides service and maintenance. Ekotechnika's founder and
board member 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 two decades. In 2011 the equipment business was
separated from the farming business, which now operates independently under
the name Ekosem-Agrar. Operating 12 locations in attractive Russian farming
regions, Ekotechnika today employs around 500 people and generated sales of
more than EUR 140 million in 2016/2017. The Ekotechika stock is listed on
the Primärmarkt of the Düsseldorf stock market (ISIN: DE000A161234).
Contact
Ekotechnika AG // Johann-Jakob-Astor-Str. 49 // 69190 Walldorf // T: +49 (0)
6227 3 58 59 60 //
E: [email protected] // www.ekotechnika.de/en
Press / Investor Relations
Fabian Kirchmann // IR.on AG // T: +49 (0) 221 9140 970 // E:
[email protected]
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22.06.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Ekotechnika AG
Johann-Jakob-Astor-Str. 49
69190 Walldorf
Germany
Phone: +49 (0) 6227 3 58 59 60
E-mail: [email protected]
Internet: www.ekotechnika.de
ISIN: DE000A161234
WKN: A1R1A1
Listed: Regulated Unofficial Market in Dusseldorf
Notierung vorgesehen. / Intended to be listed.
End of News DGAP News Service
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