Improvement in the financial status of AVTOVAZ

Improvement in the financial status of AVTOVAZ

RusAutoNews.Com – As reported by AVTOVAZ press office, the company has sold 221,207 cars and light commercial vehicles in Russia during the first nine months of 2017, which is equivalent to a 16.5% year-on-year growth. The sales dynamics have caused a positive effect on the market as a whole (10.6% market growth in January-September period) and on the financial status of AVTOVAZ.

The company generated an operational profit of 1.9 billion rubles during the aforementioned period. The net profit has remained in negative figures: -4.5 billion rubles. The continuation of the process of cost optimisation and the effect of favourable exchange rates have also helped to improve the financial status of AVTOVAZ.

The share of Lada in the Russian automobile market (cars and LCVs) has risen by 1 percentage point to 19.6%. This trend is largely due to the increase in the sales of new models: LADA Vesta and LADA XRAY. Three LADA models have kept their positions amongst the top-ten best-selling vehicles in Russia: LADA Granta (2nd), LADA Vesta (3rd) and LADA XRAY (8th). The expected launch of the new models: LADA Vesta SW and LADA Vesta SW Cross in Russia in late October will consolidate the leadership of the brand in the country.

Governmental measures have also helped to improve the financial status of AVTOVAZ. The commercial success of LADA during the aforementioned period is due to the implementation of new government support programmes (First Automobile and Family Car). Car fleet utilisation programme has also helped increase the revenues of AVTOVAZ Group to 158.6 billion rubles, which indicates a 21.5% year-on-year rise.

“I’d like to thank everyone in AVTOVAZ for the great success in the first nine months of 2017. Nevertheless, the positive result in operational activities is partly due to some temporary factors, such as; the introduction of new government support measures at the end of the fleet renewal programme and the delayed effects of the favourable exchange rates during the first half of the year. As a company, we need to develop an immunity against outside factors in order to minimise the potential risks and continue with the optimisation of costs, based on the strict execution of our road maps. In carrying out these actions, we will remain on course to achieve the operational profit forecasts for 2018 and improve the net profit figures” – as noted by Nicolas Maure, the chairman of AVTOVAZ Group. 

In addition, the car exports have caused a positive effect on the financial status of AVTOVAZ. The company has increased LADA exports (including components) by 61.6% by the end of the first three quarters of the year, in comparison with the same period of 2016.