Ekosem-Agrar AG publishes operational information for the first half of 2024

Ekosem-Agrar AG publishes operational information for the first half of 2024

• Milk Production and Daily Milk Output continue to grow
• Milk Processing segment increases volume by 27% to 162,100 tonnes of finished dairy products
• Introduction of new cheese products and expansion of retail network

Walldorf, 3 September 2024 – Ekosem-Agrar AG, the German holding company of Russian milk producer EkoNiva Group, produced 665,500 tonnes of raw milk in the first half of 2024, up around 7% on the same period of the previous year (619,400 tonnes). The raw milk price was significantly less volatile than in the previous year and recorded price increases in the single-digit percentage range in the first half of the year. The costs for raw milk production increased largely in line with this. In the first six months of 2024, the Group increased its average daily milk output by a further 7% to 3,656 tonnes (previous year: 3,422 tonnes), thus maintaining a high level of production. In addition to the improvement of operational processes, the introduction of advanced information systems, including the EkoFeed and EkoCrop software developed in-house for balanced feeding and efficient feed production, is a key factor here.

In the reporting period, the average number of cattle on all Ekosem-Agrar Group farms totalled around 247,400 animals (previous year: 233,700 animals; +5.8%), including more than 115,000 dairy cows (previous year: 112,600; +2.5%).

Growth in processed dairy products and introduction of new cheese products

In the period from January to June 2024, the Ekosem-Agrar Group produced 162,100 tonnes of finished dairy products, 27% more than in the previous year (previous year: 127,900 tonnes). The production of fresh milk and traditional dairy products (cream, kefir, sour cream, cottage cheese, butter, etc.) grew by 25% year-on-year to 153,000 tonnes (previous year: 122,500 tonnes), while the production of yoghurt and dessert products (including ice cream) increased by 40% to 4,200 tonnes (previous year: 3,000 tonnes). Cheese production more than doubled to 4,900 tonnes (previous year: 2,400 tonnes). The Group expanded its product portfolio in this area in the first half of 2024 by adding two new types of cheese, including mozzarella.

EkoNiva's dairy products are now available in 70 regions in Russia. The total number of points of sale increased significantly again during the first half of the year to 65,900 at the end of June (30 June 2023: 56,400). The company's own retail network was also expanded further. Twelve new brand shops were opened in the first six months of 2024.

Ekosem-Agrar's agricultural operations also began harvesting fodder in May. By the end of June, the Group had harvested 163,600 tonnes of dry fodder (previous year: 140,200 tonnes; +17%).

About Ekosem-Agrar

Ekosem-Agrar AG, Walldorf, is the German holding company of the Ekoniva Group, one of Russia's largest agricultural companies. With a herd of more than 245,000 cattle (including over 115,000 dairy cows) and a milk output of 3,700 tons of raw milk per day, the company is the country's largest milk producer. The group controls an agricultural area of around 630,000 hectares and is also one of Russia's leading seed producers. The founder and CEO of the company is Stefan Dürr, who has been active in Russian agriculture since the late 1980s and has played a decisive role in its modernization over the last three decades. He was awarded the Order of Merit of the Federal Republic of Germany in 2009 for his services to the German-Russian agricultural dialog. The Group has around 14,500 employees in nine administrative regions in Russia. Ekosem-Agrar generated total output of EUR 1,152.0 million and EBITDA of EUR 396 million in the financial year 2022.

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