PJSC «Research and production corporation «United Wagon Company» (RPC UWC, the Group or the Company) (MOEX: UWGN), Russia’s largest manufacturer of freight cars1, reports its consolidated IFRS financial results for 20202.
Key results of the reporting period:
- RPC UWC's consolidated revenue for 2020 grew by 23.4% compared to that of 2019, reaching RUB 79.6 billion.
- According to the Group’s consolidated financial statements, the 2020 EBITDA was RUB 13.1 billion, up by 10.2%.
- The Company recorded a net loss of RUB 22.5 billion for 2020 against a net profit of RUB 1.3 billion earned in 2019.
Amidst the stagnation of the rail transportation sector and a decline in demand for railcar manufacturing industry products in 2020, the Group demonstrated stability in its production activities and growth in key operating indicators (revenues and EBITDA). Operating profit excluding the impairment of goodwill, property, plant and equipment, intangible assets, right-of-use assets and other non-current assets was maintained at RUB 7.9 billion, just as in 2019.
The PRC UWC’s net loss was mainly attributable to losses caused by the above impairments as well as by creating provisions for financial instruments due to the long-term slowdown of the global and Russian economies, high volatility of global markets, the risk of the national currency weakening and other negative factors.
Despite the external challenges posed by the tough macroeconomic environment, the Group performed its loan portfolio servicing obligations fully and in a timely manner during the reporting period.
In 2021, RPC UWC is implementing a set of measures aimed at minimising the negative impact of market risks and strengthening its leadership position in the rail industry.
Presently, almost 70% of the 2021 production plan is covered by contracts with customers, which indicates that the demand for the Company's innovative products is steady.
1As reported by INFOLine-Analytics: https://infoline.spb.ru/news/index.php?news=205975
2The information in this press release is presented based on continuation of the Group as a going concern