RusAutoNews.Com – The revenue of AVTOVAZ Group has increased by 22% in 2017. 311.588 new LADA automobiles and light commercial vehicles have been sold in Russia in 2017, which is equivalent to a 17% year-on-year growth. The rise in LADA sales has outpaced the growth rate in the rest of the automobile market (+12%). The share of LADA in Russian market has increased by a percentage point to 19,5%.
The success of the new generation LADA Vesta and LADA XRAY automobiles was the main contributor in the growth of the revenue of AVTOVAZ. Four LADA models have made it into the top-ten best selling vehicles in the Russian market: Granta (2nd place), Vesta (3rd), Largus (8th) and XRAY (9th).
AVTOVAZ Group has increased car and assembly kit exports in 2017 (+44,15% y/y) by entering new markets – China, Cuba and Jordan.
The consolidated revenue of AVTOVAZ has increased to 225,6 billion rubles in 2017 (+22% y/y). The company has achieved much better financial results in comparison with recent years, during the aforementioned period. The operating margin has amounted to 1,6 billion rubles (0,7% of revenue). Moreover, a positive free cash flow has been created and part of debts has been repaid, in the amount of 12,6 billion rubles.
The improvement in the financial situation and revenue of AVTOVAZ was not only due to the positive tendencies in the Russian car market and favourable dynamics in exchange rates, but also as a result of excellent commercial activity and production figures. Thereby, the targets in the long-term plan, in terms of achieving positive operational results in 2018, have been reached in a shorter time frame.
The net profit of AVTOVAZ Group has remained negative, on the other hand (-9,7 billion rubles). The negative result is mainly due to expenditures on restructuring (2,2 billion rubles) and repayment of previous high amount debts (7,3 billion rubles), as well as a one-time write-off in one of the joint ventures.
