Ekosem-Agrar AG continues operational growth in Q1 2023

Ekosem-Agrar AG continues operational growth in Q1 2023

• Core business of raw milk production up 6% to 304,000 tons
• Strategic growth segment of milk processing increased output of finished dairy products by 72% to 59,600 tons in first quarter

Walldorf, 24 April 2023 – Between January and March 2023, Ekosem-Agrar AG, the German holding company of Russian milk producer EkoNiva Group, showed a positive performance in all material business segments. During this period, the company produced more than 304,000 tons of raw milk, 17,000 tons more than in the first quarter of the previous year. The average daily milk output amounted to 3,378 tons in the reporting period (previous year: 3,190 tons). The increase in raw milk output is essentially attributable to the higher daily output per dairy cow, which rose to 30 kg in the first quarter of 2023, up from 28.4 kg in the prior year period. This improvement is mainly the result of an optimized herd structure and increased feed efficiency. The average number of cattle increased to more than 233,400 (previous year: 220,000 cattle), of which 112,700 were dairy cows.

Ekosem-Agrar Group’s milk processing segment recorded particularly strong growth of 72% to roughly 59,600 tons of finished dairy products in the first three months of 2023. The output of fresh milk and traditional dairy products increased by 71% to over 57,640 tons. Production of yogurt and dessert products (including ice-cream) more than doubled to 1,560 tons. Cheese production rose by 79% to 365 tons. The growth in milk processing is mainly attributable to optimized production processes and increased capacities at several of the company’s locations. The range of EkoNiva-branded products increased to over 80 items. The first quarter also saw the company expand the distribution channels for dairy products. Between January and March, five new retail stores were opened and shipments to Uzbekistan began.

The Group’s crop farming segment has started its spring field work in several regions. Besides cash crops and seeds, the focus has traditionally been placed on forage crops, which are intended to fully cover the Group’s annual demand for roughage and succulent feed.

About Ekosem-Agrar

Ekosem-Agrar AG, Walldorf, is the German holding company of the Ekoniva Group, one of the largest Russian agricultural companies. A herd of more than 233,000 cattle (thereof over 112,000 dairy cows) and a daily milk output of close to 3,400 tons of raw milk make the company the largest milk producer in the country. The Group controls an agricultural land area of approx. 630,000 hectares and is also one of the leading Russian seed producers. The founder and CEO of the company is Stefan Dürr, who has been active in the Russian agricultural sector since the end of the 1980s and has been instrumental in modernizing the industry in the past three decades. In 2009, he was awarded the Order of Merit of the Federal Republic of Germany in recognition of his contributions to the German-Russian Dialogue on Agriculture. The Group employs some 13,500 people and has a presence in nine administrative areas in Russia. Ekosem-Agrar generated a total output of EUR 616 million and EBITDA of EUR 190 million in 2020.

Ekosem-Agrar contact

Irina Makey // Ekosem-Agrar AG // Johann-Jakob-Astor-Str. 49 // 69190 Walldorf // T: +49 (0) 6227 3585 919 // E: irina.makey@ekosem-agrar.de
 

Press / Investor Relations

Fabian Kirchmann, Jonas Schneider // IR.on AG // T: +49 (0) 221 9140 970 // E: presse@ekosem-agrar.de