PJSC «Research and production corporation «United Wagon Company» («RPC UWC», the Company or the Holding) (MOEX: UWGN), the leading manufacturer of innovative railcars in the 1520 mm track gauge area, reports its IFRS consolidated financial results for the first six months of 2017.
Key events of the reporting period:
- UWC’s consolidated revenue grew by 61% compared to the same period last year reaching RUB 28.8 bln
- The Holding’s EBITDA grew by 60% to RUB 7.3 bln
- UWC’s EBITDA margin remained at 25.3%, the same figure as in 1H 2016
UWC’s consolidated revenue grew by 61% compared to the same period last year reaching RUB 28.8 bln. The growth was delivered by raising railcar sales volumes and prices and lease rates going up. In the reporting period, the Company sold 5.2 thousand of standard railcars for a total amount of RUB 8.6 bln from its own fleet. The revenue in the Production and Sales Segments grew by 66% and 38% to RUB 25.7 bln and RUB 3.2 bln, respectively.
The Holding’s EBITDA went up by 60% to RUB 7.3 bln spurred by the indicator’s growth in the following key business segments: Production EBITDA grew by 83% to RUB 4.5 bln, and Distribution EBITDA by 23% to RUB 2.5 bln. The growth of this consolidated ratio was also contributed by the sale of standard railcars from the fleet, EBITDA from this transaction being RUB 1.1 bln. UWC’s EBITDA margin remained stable at 25.3%. The Production’s margin gained 1.7 pp to reach 17.5% as a result of increasing production capacity of the Holding’s railcar building facilities and implementing cost reduction policies.
In the reporting period, capital expenditures totalled RUB 1.6 bln. In 2017, most projects aiming to diversify product lines and boost operation efficiency will be completed, and from the start of 2018 the larger part of investments will constitute maintenance investments.
Alexey Tsyplakov, UWC Deputy CEO, Finance and Economy, said: “The growth in the railway market and the demand for railcars has had a positive effect on UWC’s financial performance in the reporting period enabling us to increase significantly our revenue and EBITDA. Our core business, railcar manufacture, is also becoming more and more efficient.”