News Dairy
Russian milk giant gives a lot of gas
Ekosem-Agrar, the German holding company of the Russian milk producer EkoNiva Group, managed to achieve significantly higher sales revenues in 2019.
The holding's sales proceeds increased to €402,7 million. Compared to the results of 2018, this is an increase of 64%. The majority of revenues came from raw milk production, which increased by 85% to €255 million, accounting for a whopping 63% of total revenues. The group's milk processing also made progress of 39% to a turnover of €38,3 million.
More equity
Shareholders' equity increased to €316,5, an increase of almost 82% compared to the previous year. According to the holding company, this is not only due to consolidated earnings and currency effects, but also to the increase in revaluation and income reserves. This was partly due to a complete revaluation of the group's land and buildings.
The company's operating cash flow improved by 44% to €167 million. The net result was €14,4 million lower than last year (€18,7 million).
Forecast 2020
The management expects the dairy herd to grow to approximately 2020 animals by the end of 110.000. The production of raw milk will increase to about 1 million tons this year. According to the group, the main strategic focus is on further expanding its own milk processing and strengthening the EkoNiva brand.
For 2020, the company expects revenue generation between €525 million and €545 million. The operating cash flow is estimated between €180 million and €200 million.
Chanti Oussoren
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