Bogdan Motors nearly breaks even in 2011

Bogdan Motors (LUAZ UK) improved its bottom line, cutting its net loss 44x yoy to just UAH 6 mln, the company announced yesterday. Revenues grew 2.3x yoy to UAH 3.9 bln, gross profit surged 3.6x yoy to UAH 581 mln and reported EBIT was positive again at UAH 202 mln.

Roman Dmytrenko: The consolidation of Hyundai Motors Ukraine (the importer of Hyundai vehicles) was the key reason Bohdan significantly improved its financials in 2011; the company’s own car production grew only 3% yoy. The company decreased its gross margin by 1 pp qoq to 12.9% in 4Q11, but increased EBIT 20% qoq solely due to abnormal “other operating income” in 4Q11. As we see a switch in consumer preferences in the low-cost car segment from (Bohdan-made) Ladas to more up-to-date versions of CEE and far eastern cars, the sales of imported Hyundais could become the only growth driver for the company in the near term.