29.08.2014
August 29, Moscow. SOLLERS Group (traded under the symbol SVAV on MICEX-RTS stock exchange) released its H1 2014 consolidated financial information prepared in accordance with the International Financial Reporting Standards (IFRS).
In H1 2014, SOLLERS’ Revenue amounted to 23,596 million rubles while its EBITDA was 2,858 million rubles and EBITDA margin stood at 12.1%. Despite the decline in Revenue of 14% the growth of EBITDA margin from 11.4% to 12.1% has been the result of effective cost control and consistent implementation of cost optimization program.
Despite the rise in the operating margin the decrease in net profits of the Group (down to 256 million rubles) resulted from the recognition of the negative financial result from participation in Ford Sollers JV in the financial statements. A number of external factors, such as the ruble devaluation, the fall in demand for C-segment cars, as well as high costs associated with substantial expansion and upgrade of the model range in 2014 and 2015, have significantly affected the margins of the joint venture in H1 2014. In this regard, the partners have developed a set of measures which will help to strengthen the market position and increase profitability of the joint venture. Ford Sollers JV has a positive outlook on its business in the Russian automotive market and will further expand and upgrade its model range in Russia, as well as invest in the localization programs.
The management of the Group expects the increase of sales in H2 2014 after launching a number of new products and upgrading the existing model range in the Group’s core businesses.
