OREANDA-NEWS.  October 11, 2012. In 1H 2012 GAZ Group improved its results: the revenue of the company increased by 10%, EBITDA – by 26%, and net profit more than doubled y.o.y., reported the press-centre of GAZ Group.

Bo Andersson, President/CEO of GAZ Group: "Improved financials enabled GAZ Group to significantly increase investments in upgrade of production facilities and model range renewal. The investment program will result in GAZelle NEXT new-generation LCV launch in 2013 and start of foreign brand vehicles production under industrial partnership with the leading international automakers Volkswagen, General Motors and Daimler". 

GAZ Group, a part of Russia's biggest business group Basic Element, has summed up the results for 1H 2012 according to the International Financial Reporting Standards. GAZ Group’s revenue for the period was RUR 57.6 billion which is 10% higher vs. the first half of 2011. The bulk of the revenue – over 50% of the total amount – was generated by Nizhny Novgorod production site (over RUR 28 billion). 

In the first half of 2012 EBITDA of GAZ Group increased by 26% to RUR 6.3 billion with the margin of 11%. The net profit more than doubled and reached RUR 3.5 billion with the margin of 6%. The revenue per employee was RUR 174 thousand per month which is 13% higher vs. 6 months of last year. Due to improved financials, the net debt to EBITDA ratio was reduced by 34% y.o.y. – in 1H 2012 the ratio was 2.4.

Bo Andersson, President/CEO of GAZ Group: "We continue working to increase the profitability of our business and to develop the model range in the still challenging and competitive market. Improved financials enabled GAZ Group to significantly increase investments in upgrade of production facilities and model range renewal: CAPEX in the first half of 2012 increased more than 3 times to RUR 4.3 billion. The investment program will result in GAZelle NEXT new-generation LCV launch in 2013 and start of foreign brand vehicles production under industrial partnership with the leading international automakers Volkswagen, General Motors and Daimler".