United Wagon Company consolidated financial statements for the first half of 2015
Public Joint Stock Company Research and Production Corporation United Wagon Company (RPC UWC, or Company), the market leader in innovative railcar manufacturing at the gauge 1520, discloses its unaudited consolidated financial statements according to IFRS for the six months ended 30 June 2015.
Sale revenue
In the first half of 2015, RPC UWC sale revenue amounted to 17 billion rubles, an 8 time-increase in comparison with a year earlier (2.1 billion rubles). All Company's business areas showed the growth: Production, Sales, and Miscellaneous areas. The positive dynamics resulted from rapid build-up of production, market-share gain in car sales and retail prices, as well as a significant increase in RPC UWC freight car fleet.
Cost value
Company value in the accounting period amounted to 15.5 billion rubles. It is the Production area which contributes mainly to the consolidated company value. The cost development in this business area resulted from freight car production increase: in H1 2015, they manufactured 33% more freight cars than in H1 2014, at that the cost development totaled 23%. The share of production cost in sales revenue decreased YOY in the Production area as well as there was a positive gross profit. Such business area results are due to the start of standard volume of production and measures implementation in cost reduction.
EBITDA
EBITDA amounted to 2.8 billion rubles, which increased 3.2 times compared to the first half of 2014. EBITDA profitability decreased as expected, which resulted from the Production business area increase and the growth of direct sales. The EBITDA profitability of the Production business area increased 5.4 times.
Financial results
According to the H1 2015 results, net loss amounted to 5.1 billion rubles and for reference in the same period in 2014, the loss was 1.9 billion rubles. The net loss for the period includes mainly non-cash costs: exchange loss of $ 1.6 billion, depreciation charges of $ 2.4 billion due to the increase of freight car fleet and production output.
RPC UWC PJSC Chief Financial Officer Anton Saykin: "Despite the difficult market situation, we can see the positive dynamics of the financial standing of the company in all business areas. The successful achievement of the strategic goals such as growth of production output and freight car fleet, the product line-up development and operational performance increase help to maintain the market positions and financial standing of the company”.
