Uzbekistan's leading car manufacturer UzAuto Motors announced its financial results for the first six months of this year. This was reported by Upl.uz.
According to this report, a significant decline was observed in the company's key profit indicators, which is related to changes in the debt capital structure. According to the report presented on the corporate data single portal, net profit showed the largest decrease.
During the period from January to June, the company's revenue decreased by 9.49 percent, reaching 21.2 trillion soums. At the same time, gross profit fell by 22.8 percent, amounting to 3.43 trillion soums.
The cost of sold products decreased by 6.36 percent, totaling 17.7 trillion soums. Operating expenses remained almost at last year's level, slightly decreasing to 2.33 trillion soums.
The most significant change occurred in net profit, which decreased by 27.5 percent compared to the same period last year, dropping from 1.91 trillion soums to 1.38 trillion soums. This trend continued from the first quarter, where profit decreased by 2 times, reaching 637.4 billion soums.
This change is related to a 17 percent decrease in revenues, while expenses remained at last year's level. There were also interesting changes in the company's liabilities structure.
Long-term bank loans nearly halved, decreasing from 1.55 trillion soums to 810.1 billion soums. At the same time, short-term liabilities increased significantly: the volume of short-term debts reached 1.14 trillion soums, and short-term bank loans amounted to 1.4 trillion soums.
Despite the decrease in profit, the company continues its policy of paying dividends to shareholders. In July, UzAuto Motors' Supervisory Board recommended paying a dividend of 522 soums per share.
At the general meeting of shareholders held at the end of July, it was approved that more than 141 billion soums would be allocated for this purpose. Payments will be made from July 29 to September 27.
Kap Depo analysts note that approximately 3 trillion soums of net profit remains undistributed. Interestingly, undistributed profit increased by more than 2 trillion soums during the reporting period, exceeding 11.2 trillion soums.
Financial changes occurred against the backdrop of personnel changes in the management. In June, Janos Kovach, an international expert with experience at General Motors and Opel, was appointed as the CEO of UzAuto Motors.
He replaced Odiljon Bastamkulov, who had been acting as the interim executive director since January.
