The GAZ Group has outlined details of its IFRS-based financial performance in the first six months of 2012 (H1 2012), showing revenue of Roubles 57.56bn (US$1.85bn), a year-on-year rise of 10.5% from H1 2011’s Roubles 52.11bn, and gross profit of Roubles 11.29bn (margin of 19.6%), versus Roubles 9.96bn (19.1%) in the first six months of 2011, a gain of 13.3%.
Over 50% of total revenue was generated by the Nizhny Novgorod production site (over Roubles 28bn).
EBITDA of Roubles 6.3bn represented a margin of just under 11% and a rise of 26% from the H1 2011 result. Pre-tax profit was Roubles 4.13bn, compared with Roubles 1.73bn, a rise of 138.0%, driven by a significant decline in financial expenses (Roubles 1.54bn, versus Roubles 2.35bn, a fall of 32.2%).
The group, which is 72.8% controlled by Russian Machines Corporation, part of Russia’s largest business group, Basic Element, generated net income of Roubles 3.46bn in the first six months of 2012, more than double the earnings result of Roubles 1.51bn in H1 2011. Net profit attributable to the owners of the company in H1 2012 stood at Roubles 3.13bn, versus Roubles 1.25bn, a gain of just under 150%.
Due to the improved financials, the company’s net debt to EBITDA ratio was reduced by 34% year-on-year to 2.4.
Bo Andersson, President and Chief Executive Officer of GAZ Group, commented: “We continue working to increase the profitability of our business and to develop the model range in the still challenging and competitive market. Improved financials enabled GAZ Group to significantly increase investments in upgrade of production facilities and model range renewal. Capex in the first half of 2012 increased more than three times to Roubles 4.3bn. The investment programme will result in the GAZelle NEXT new-generation LCV launch in 2013 and the start of foreign brand vehicles production under industrial partnerships with the leading international automakers Volkswagen, General Motors and Daimler.”
GAZ Group is Russia’s largest manufacturer of commercial vehicles. The company produces light- and medium-duty commercial vehicles, heavy-duty trucks, buses, cars, powertrain and automotive components. GAZ Group claims leadership of the commercial vehicles market in Russia with about 50% in the LCV segment, 58% in the medium-duty trucks segment, 42% in all-wheel-drive heavy-duty trucks segment, and about 65% in the bus segment.
