PJSC “Research and production corporation “United Wagon Company” (UWC, the Company or the Holding) (MOEX: UWGN), the leader in innovative railcar building in the 1520 mm track gauge zone, reports its audited IFRS consolidated financial results for 2016.
Key indicators over the reporting period:
- UWC’s consolidated revenue grew 32% to RUB 48.5 billion
- The Holding’s EBITDA grew 93% to RUB 13.7 billion
- UWC had its EBITDA margin at 28.2%, an increase of 9 percentage points compared to 2015
- The Holding’s net profit in 2016 totalled RUB 568 million
UWC’s consolidated revenue grew 32% to RUB 48.5 billion. The growth was brought on by increased production capacity and railcar sales, as well as by the larger average size of the Company’s own fleet and higher railcar prices and lease rates. The revenues in the Production and Distribution grew by 35% and 22% to RUB 43.4 billion and RUB 5.2 billion, respectively.
The Holding’s total EBITDA soared by 93% and reached RUB 13.7 billion spurred by EBITDA increases in the key business segments: the Production EBITDA grew by 117% to RUB 9 billion, and the Distribution EBITDA by 53% to RUB 4.3 billion. UWC’s EBITDA margin gained 9 pp reaching 28.2%. The margin grew due to a higher operational efficiency of the production and a larger EBITDA generated by the lease business. The Production margin gained 7.8 pp to 20.8%, as the Holding increased the production capacity of its facilities and implemented measures to reduce the production costs. The growing return on railcars raised the Distribution margin by 16.4 pp to 81.1%.
UWC’s net profit in 2016 totalled RUB 568 million. The major contribution to the positive results was made by the substantial EBITDА growth.
Anton Saykin, UWC’s CFO, said, “In 2016, all our key financial indicators grew. The market recovery enabled us to increase our revenue, while the policies we had been implementing to improve the operational efficiency of our business drove up the EBITDA margin. Moreover, we have been able to generate net profit in the reporting year. Another achievement is a considerable reduction of the company’s debt load. UWC will continue working on further improvement of its net debt-to-EBITDA ratio”.