11.04.2017
SOLLERS Group (MOEX: SVAV) reports its consolidated IFRS results as of 31 December 2016.
SOLLERS Group’s revenue for the year ended December 31, 2016 totalled RUB 35.6 bln. (RUB 38.3 bln. in 2015). The reduction in the Group’s revenue resulted from suspension of SsangYong vehicles production and sales.
EBITDA amounted RUB 3.9 bln. (RUB 4.0 bln. in 2015). EBITDA margin for 2016 increased to 11.0% (10.5% in 2015).
Operating profit of the Group was reported at RUB 2.3 bln. Net profit decreased to RUB 1.6 bln. in 2016.
The deterioration of the Group’s net profit was mainly stipulated by the change in the fair value of the dollar-denominated financial instrument (put option on interest in Ford-Sollers JV) resulting from the Russian Rouble appreciation in 2016. Excluding the negative effect of the financial instrument revaluation the Group’s net profit for the period is maintained at the level of 2015 and totalled RUB 2.7 bln.
Despite the considerable decline of the Russian automotive market SOLLERS Group managed to considerably improve its market share. The market share of UAZ branded vehicles was up from 3.0% in 2015 to 3.4% in 2016.
“Ulyanovsk Automotive Plant, the main Company’s investment priority, remained its positive retail sales dynamics in 2016, in spite of a weak Russian automotive market performance. Last year we witnessed a substantial positive retail sales trend and increase in the market share of the Ford brand in Russia. It drives further development of Ford brand in Russia and increases the profitability of Ford Sollers JV”, says Nikolay Sobolev, First Deputy CEO of SOLLERS PJSC.
According to Nikolay Sobolev, in 2017 the Company will continue to improve its positions through increase in UAZ sales, including export efforts. SOLLERS will focus on the launch of new marketable products, reiteration of SsangYong sales in Russia and the development of joint ventures with Ford and Mazda.
