EkoNiva Group, the largest milk producer in Russia and Europe, has presented its unaudited consolidated financial statement* for the nine months of 2021 ended 30 September.
Despite the weakening of the Russian currency, the Group's sales revenue grew by 14% and reached 386.4 million euros, and the revenue in rubles increased by 27% to 34.2 billion rubles during the reporting period. Raw milk production remains the main driver of revenue growth. The share of the processing business also continues to grow — its turnover for the reporting period has increased by 70%.
From January to September 2021, EkoNiva Group produced 840,000 tonnes of raw milk, almost a quarter more than in the same period of the previous year. The average daily production volume in the company was 3,100 tonnes in the reporting period. On September 30, 2021, the dairy herd reached 112,000 cows (+12% YoY), the total livestock population was more than 216,000 animals (+8%).
The comprehensive income of EkoNiva Group for January-September 2021 amounted to 502.3 million euros in comparison 477.7 million euros for the same period in 2020, in rubles - increased by 17% to 44.5 billion rubles.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) deduction for the nine months of 2021 were 162.1 million euro, slightly lower than the previous year. In rubles, this indicator increased by 5%, exceeding 14.3 billion rubles, despite a considerable increase in the cost of feed components, premixes and other means of production. At the same time, liquidity in rubles increased by 37%, in euro - by 24%, which indicates the company's ability to generate cash flow for debt service and relief continues to improve significantly.
The agricultural holding confirms the previously announced forecast for raw milk production at the level of more than 1.1 million tons by the end of the year. Thus, EkoNiva will become the first company in Russia to pass the million milestone in milk production in a calendar year. The company continues to strengthen its position as a leader in the industry.
Stefan Dürr, EkoNiva Group President: ‘We are satisfied with our results for the first nine months of 2021 and with how the company is gaining momentum after completing the main part of the 2016–2020 investment program in general. Although the sharp rise in prices in the commodity markets, which began last year, had a substantial impact on the dairy farming sector on the whole, it has not yet been possible to fully compensate for it due to the high social significance of the products produced by the company.’
* based on management accounting