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AVTOVAZ Group announces its H1 2017 IFRS results · 2017-07-31 15:52

The positive trends regarding market share, revenues and financial results have continued. First signs of a recovery of the Russian automotive market (+7% to H1 2016), a growing market share, and the ongoing restructuring drove the financial recovery.

In H1 2017, AVG sold 140,231 vehicles in Russia under the LADA brand, 13% more than in the same period of 2016 (124,353 vehicles sold). LADA’s domestic market share (passenger cars + light-commercial vehicles) increased by 1 point to 19.5%. This achievement was largely driven by growing sales of LADA?s new generation models ? the LADA Vesta and the LADA XRAY, supported with the expansion of their line-up (new versions, new trim levels). Five LADA models achieved positions in the list of TOP 20 bestsellers: the LADA Granta (2nd), the LADA Vesta (3rd), the LADA XRAY (9th), the LADA Largus (14th), and the LADA 4×4 (17th).

AVG succeeded in increasing export sales of LADA vehicles (including knocked-down kits) by 76% versus the same period of 2016, mainly driven by the expansion of the SKD assembly in Kazakhstan and the commercial launch of LADA Vesta. AVG also sold 48,487 Renault, Nissan and Datsun cars to its Alliance partners.

As a result, AVG?s revenue grew to 102 B-RUR, which is 17.6% better than in H1 2016. AVG has got close to the operating breakeven with 4.0 M-RUR of loss (improved by 9 B-RUR compared to H1 2016). Net profit remained negative at 4 B-RUR (improved by 23 B-RUR). Furthermore, AVG underlines ongoing risks that may negatively affect the Company?s performance in H2 2017. Raw material price increases, and worsening forex conditions are among them. To offset these, the Company continues its restructuring plan.

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