AVTOVAZ Group announced 2016 financial results · 2017-02-17 15:44
AVTOVAZ Group increased revenue by +4.8% in 2016 and reduced operating loss by 37%, before impairment and restructuring costs.
A high market share achievement in the Russian passenger car market linked to commercial success of LADA?€™s new models, ongoing restructuring activities, pro-active cost reduction and more favorable foreign currency exchange rates helped to improve the Group?€™s financials.
Despite an 12% drop of the Russian passenger car market in 2016, AVG succeeded to increase its revenue by +4.8% to RUR 184.9 B in comparison to 2015. High customer demand for new models LADA Vesta and LADA XRAY and a smart pricing policy were the main drivers for this revenue growth. The LADA retail sales on the Russian market in 2016 amounted to 266,296 cars (1% less than in 2015). The LADA domestic passenger car market share increased by 2.2 points to 20.1%. The LADA retail sales in export markets amounted to 18,511 cars (based on local registrations in 32 countries) leading to total retail sales of 284,807 cars worldwide.
The production volume of vehicles under the 4 brands (LADA, Renault, Nissan and Datsun) in the Togliatti and Izhevsk plants amounted to more than 408,000 units, including assembly kits.
The operating loss before impairment and restructuring costs amounted to RUR 15.6 B, reduced by 36.8% compared to 2015 (RUR -24.7 B). Impairment and restructuring costs amounted to RUR 25.0 B. AVG?€™s net loss amounted to RUR 44.8 B in 2016, including impairment and restructuring costs.
AVG?€™s Dec 31st 2016 balance sheet reflects the RUR 26.1 B share capital increase performed in December.