The net loss of Avtovaz amounted to €196 million in 2020

The net loss of Avtovaz amounted to €196 million in 2020


 

Prime.- Avtovaz has made a net loss of €196 million in 2020 according to IFRS, in contrast with the €72 million profit generated the year before, in accordance with the financial report of the main shareholder of Volga Automobile Plant: the French manufacturer Renault.

In the meantime, as stated in the report, the operational profit of the enterprise remained almost unchanged in 2020, €129 million compared to €130 million and the pre-tax profit increased by 3.6 times to €77 million. Capital costs have also risen by 27% to €172 million. The revenue of the company has shrunk, on the other hand, by 17% to €2.8 billion.

Both long and short-term liabilities of Avtovaz have risen in 2020, as reported by Renault, by 22% to €1.12 billion and by 18% to €1.02 billion respectively.

Avtovaz belongs to Dutch Alliance Rostec Auto BV (100%), which is a joint venture between Rostec and Renault. Approximately 32% of the joint venture is owned by the Russian side, the remaining 68% belonging to the French company Renault. For the first time since 2012, Volga Automobile Plant made a modest amount of net profit in 2019, in the amount of 385 million rubles according to Russian Accounting Standards, following the sales of 362,400 vehicles, which is equivalent to a 1% increase, in comparison with the 2018 figure.