Ekotechnika AG Reports Financial Performance for 2022/2023

Ekotechnika AG disclosed its financial outcomes for the fiscal year 2022/2023, witnessing a decrease in group revenue to EUR 175.2 million compared to EUR 237.5 million in the previous year. The company, a prominent dealer of agricultural machinery in Russia, also saw a significant decline in its Operating result (EBIT), which stood at EUR 19.2 million, down from EUR 35.9 million. This financial year's results were impacted by a substantial drop in demand for new agricultural machinery and the loss of key suppliers, leading to a shift towards products from China and Turkey, which did not match previous sales figures.

Ekotechnika AG's financial year was marked by adversities, including geopolitical uncertainties and deteriorating economic conditions affecting the agricultural sector. The company faced challenges in supplying spare parts and witnessed a fall in agricultural commodity prices. Revenue from new agricultural machinery sales declined notably, with the company selling 131 new tractors and 15 combine harvesters and forage harvesters. Nevertheless, revenue from the sale of used agricultural machinery and spare parts saw a notable increase.

In response to market shifts, Ekotechnika AG diversified its supplier base and product portfolio, now including machinery from China's LOVOL and Turkey's Basak, among others. Despite facing ongoing uncertainties, the company anticipates an improvement in machine sales revenues in the coming financial year, though figures are expected to remain below previous periods. Group revenues for 2023/2024 are projected to range between EUR 175 million and EUR 210 million, with EBIT estimated between EUR 12 million and EUR 18 million, contingent upon geopolitical and economic developments in Russia.