Bogdan Automobile Plant releases audited 2007 IFRS financials

Yesterday, Bogdan Automobile Plant (LUAZ: BUY) released its audited 2007 IFRS financials: sales of USD 795.9 mln (+122% yoy), EBITDA of USD 96.2 mln (EBITDA margin 12.1%), and net income of USD 73.0 mln (net margin 9.2%). Inna Perepelytsya: As we said in our industry report on April 11, the company’s sales and profit tax in 2007 benefited from tax privileges, which according to the audited statements, came to a sizable sum of USD 14.6 mln. To optimize the effect of the privileges, the company sold automobiles to end consumers directly, not through a dealer network, at its own expense and at the retail price. Bogdan’s reported sales were 12% higher than we expected. We maintain our sales forecasts for the company as we do not expect Bogdan to return to its 2007 sales scheme (its tax privileges expired on December 31, 2007).