The net profit of Sollers Group has shrunk by 38% in 2017

The net profit of Sollers Group has shrunk by 38% in 2017

RNS – Sollers Group has made a net profit of 999 million rubles in 2017, according to IFRS, which is equivalent to a 37.6% year-on-year shrinkage, as stated by the group.

The revenues have grown by 0.4% to 35.8 billion rubles, however, the EBITDA has shrunk by 13.5% to 3.4 billion rubles. EBITDA margin has also gone down by 1.5 points to 9.4%.

According to the first deputy general director of the company Nikolai Sobolev, the shrinkage in the sales of UAZ vehicles in 2017, caused by the fluctuating demand in the Russian market and the gradual reduction in demand supporting measures taken by the government, was the main factor affecting the financial indicators of the company.

Ulyanovsk Car Factory UAZ has the priority in investments for Sollers, as emphasised by the group. The plant manufactures UAZ SUVs. The sales of new UAZ vehicles have dropped by 15% in 2017, to 41,600 units.

Apart from Ulyanovsk Car Factory, Sollers Group includes the joint venture of Ford and Mazda.