The total revenue of GK AVTODOM increased by 2.4 times at the end of the first half of 2021

Top Quote In August 2021, GK AVTODOM summed up the results of work in the first half of the year. End Quote
  • (1888PressRelease) August 10, 2021 - The total revenue of the company increased 2.4 times compared to the first half of 2020 and amounted to 47.7 billion rubles.*

    The active growth of indicators is associated with the expansion of the portfolio of dealerships that are part of the holding and with an increase in the efficiency of the main lines of business. In January, AVTODOM group of companies acquired the car dealerships Audi Center Taganka, Audi Center Varshavka and Audi Center Vostok, and in May - Porsche Center Leninsky. Key indicators of the main divisions have doubled on average. New car sales increased 2.3 times. Used car sales grew 2.1 times. Sales to corporate clients grew 2.4 times. Service load increased 1.9 times.

    The majority of car dealers decided to reduce warehouses and refused to partly supply cars in the second quarter of 2020. AVTODOM chose a different strategy. The company replenished inventories, increased warehouses and offered customers cars from stock from a single warehouse. As a result, the volume of sales of new cars in AVTODOM increased by 134% to 6050 units. against 2582 pcs. in the first half of 2020. According to the AEB, sales of premium cars in Russia grew by 41% over the same period.

    This approach, coupled with a high level of customer service, allowed the dealer to offer customers a wide range of services for buying a car and to keep prices down as much as possible. The average cost of a new car in AVTODOM increased by 9% in relation to IP 2020. It amounted to 5.52 million rubles against the market average growth in car prices by 12.5% for IP 2021 (according to Autostat).

    Sales of new cars to corporate clients in IP 2021 increased by 142% to 1,743 units. against 721 pcs. in IP 2020. The share of new car leasing sales to legal entities increased by 7 percentage points to 54% of the total volume of transactions.

    Restrictions in the work of dealerships associated with the coronavirus pandemic negatively affected the work of most businesses in the past year, so compare the data from 2021-2020. not correct. However, AVTODOM showed growth in most indicators and by IP 2019. For example, sales of new BMW cars grew by 216%.

    An objective shift to the online sphere has occurred in the market over the past year. AVTODOM launched a remote submission of applications for registration of financial products through a corporate website and carried out the integration of a mobile application with a number of captive banks. This was done in order to meet new challenges and meet the needs of customers in a changed external environment. As a result, the share of sales of new cars on credit to individuals increased by 13.4 percentage points in relation to the level of IP 2020 and amounted to 60% of the total sales volume.

    According to Autostat, in January-May 2021, the used car market grew by 28.3% year-on-year to 2.3 million cars. It has grown by 10.5% compared to 2019. AVTODOM increased sales of used cars by 108% to 4881 units in six months against 2344 pcs. in IP 2020. The growth in used car sales is directly related to the growth in new car sales. In addition, the company notes an increase in the share of trade-in for new and used cars, as well as an increase in the volume of direct redemption, but emphasize that qualified personnel play a special role in the development of the direction. The Drom website calculated that prices for used cars in IP 2021 increased by 8.8% to 579 thousand rubles. The average indicator for AVTODOM for this period increased by 26% and amounted to 2.59 million rubles.

    BMW Motorrad, Ducati and KTM motorcycle brands are presented in the AVTODOM portfolio. The first half of 2021 was marked by the opening of three new KTM motorcycle dealerships: KTM AVTODOM Khimki, KTM AVTODOM Kashirka and KTM AVTODOM Krasnodar, and the Ducati motorcycle dealerships in Krasnodar. Sales of new motorcycles in AVTODOM in IP 2021 increased by 63% to 827 units. 16% of retail transactions were completed using credit programs. Used motorcycle sales showed an increase of 110%. The average price of a new motorcycle increased by 18% to RUB 1.49 million. The average price of a used motorcycle increased by 25% to RUB 1.14 million.

    The total number of standard hours worked out by the locksmith and body shops of the AVTODOM Group of Companies at the end of IP 2021 amounted to 443,799, taking into account external and internal works. This is 90% higher than the IP 2020 indicators. The staff of GC AVTODOM increased by 68% and amounted to 2712 employees at the end of the first half of 2021.

    «In 2020, the company's revenue increased by almost 60% to RUB 56 billion. We plan to work even better in 2021. At the end of the year, we forecast an increase in revenue by 90% and an increase in net profit by 2.5 times in relation to 2020, – shared plans Andrey Olkhovsky, General Director of AVTODOM Group of Companies. – Now our goal is to get out of bank loans and attract public funding, when only the market will assess how efficiently we work. We are actively moving in this direction. In the spring we received a credit rating, which we plan to update based on the results of work in the first half of the year. I think we will place the first bond issue at the end of the year. The range of funds raised will be in the range from 3 to 5 billion rubles».

    * all indicators are given according to management accounting data of the GC AVTODOM.

    AVTODOM was founded in 1992 and specializes in the sale and service of premium and luxury cars. The company's portfolio includes brands: BMW, BMW Motorrad, MINI, Lamborghini, Jaguar, Land Rover, Ducati, Mercedes Benz, smart, Porsche, Audi, Volvo and KTM. Dealerships are located in Moscow (22 showrooms, including MINI and Moto), St. Petersburg (7 showrooms, including MINI and Moto) and Krasnodar (2 show rooms: KTM and Ducati). The company is constantly developing, building new car dealerships, modernizing existing ones and expanding its presence in the premium segment.

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