SVAV

10.05.2018

  • MICEX / RUR 495.00 (-2.56%)
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IFRS-BASED PERFORMANCE OF SOLLERS IN THE FIRST HALF OF 2019

Moscow, April 29th, SOLLERS (MICEX-RTS stock symbol: SVAV) has published the IFRS-based consolidated financial information for the first half of 2019.

Over the first half of the year, SOLLERS revenue increased to RUB 15.1 bln, a 6.9% increase as compared with the corresponding figure in 2018.

EBITDA increased over the six-month period by 54.8% up to RUB 1.82 bln. The operating profits of the company rose from the previous years RUB 416 mln to 1.09 bln in the reporting period.

SOLLERS net debt reached RUB 3.8 bln in comparison with 3.7 bln as dated 31.12.2018. Overall, however, the group recorded a loss of RUB 136 mln for the reporting period due to one-time factors including the reevaluation of financial instruments.

According to SOLLERS CEO Nikolay Sobolev: In spite of the downward trend in the Russian automotive market, an extension of the product line of our key brand UAZ and changes in the sales structure have led to an increase in SOLLERS revenue for the first half of 2019, and the cost-saving program has allowed improving the companys operating profits. In the second half of the year, SOLLERS will solidify its position by introducing new products and actively developing the joint ventures.

Earlier, UAZ the Ulyanovsk Automobile Plant launched new modifications and special versions for the Patriot and Profi models, as well as for its classic range of commercial vehicles. The mass production of UAZ Patriot off-roaders with automatic transmission is scheduled to begin soon. The company also has a promising new platform that it continues to develop and ready for production.

On July 1st, 2019, the Ford Sollers joint venture renewed operations after restructuring, with SOLLERS now as the controlling shareholder owning 51% of the stock. In the LCV segment, the company continues to expand, having added the Ford Transit model and a broad selection of special and social-purpose versions based on the Transit platform. So far this year, the sales of this model have improved by 4% compared to the corresponding period last year. The company plant is currently making preparations to begin the production of an upgraded version of the Ford Transit.

SOLLERS has also signed a special investment agreement with the Russian Ministry of Industry and Trade to boost the production of UAZ and Ford Transit vehicles. Under this project, a new line of UAZ models will be created on a common platform with the introduction of new technologies including gas-engine cars, embedded telematics, connected car services and ADAS systems.

Another joint venture, Mazda Sollers, started serial production of Mazda SkyActiv-G engines at its plant in Vladivostok in June. All of the engines will be shipped to Japan to be used in Mazda Motor Corporation models. The joint venture plans to increase volumes of manufacture, intensify localization in engine production and raise the number of operations for processing basic engine parts.


mln RUB

1H2018

1H2019

 Change

Revenue

 14,132

15,107

6.9%

EBITDA

 1,178

1,824

54.8%

EBITDA Margin

8.3%

12.1%

3.8%

Operating profits

416

1,086

161.0%

Operating margin

2.9%

7.2%

4.3%

Share in profit/(loss) of joint ventures and associates

66

278

320.9%

Net profit

 443

(136)

-130.7%

Net debt as dated 31.12.2018/30.06.2019

3,703

3,786

-2.2%

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