"AVTOVAZ" has become a profitable

26 July 2018

The company published a positive report for the first quarter

All accustomed to the fact that "AVTOVAZ" is only able to generate losses. However, there came a turning point: the company has finally come out. A new report shows that for the first half of the largest domestic automaker received 3.1 billion rubles of net profit.

The fiscal situation began to improve in 2017. Then "AVTOVAZ" decreased net profit by 4.6 times, to 9.7 billion rubles. How the company managed so quickly to become profitable? One of the key reasons was the increase in sales in the first half of the year demand has increased by 21.1 %, to 169 884 cars. The share of Lad market increased to a record over the past seven years — 20 %. It is noteworthy that earlier the company's management set a task (to increase the proportion to 20 %) even Bo Andersson, former CEO of AVTOVAZ.

For the first six months of 2018 the ten most popular new cars in Russia includes three models of the company: Vesta (second place), Granta (third place) and Largus (eighth place).

If to speak about other financial indicators, and it all looks optimistic. For the first half consolidated revenue increased by 31.5 % to 134,7 billion. Operating margin rates, which positively impacted by one-time effects in the amount over 2 billion rubles, demonstrating a positive value in the amount of 7.2 billion rubles, while a year earlier the rate was at near-zero zone.

But even amid such pleasant news in the "AVTOVAZ" retain a healthy skepticism. In an official statement the company said that the guide doesn't neglect significant risks to its activities in the coming months. And it is not about heightened competition or problems with production, and with the precarious state of the Russian economy. To this day our country is too dependent on external factors, so steady growth in demand suddenly can be replaced by a deep fall.