The destroyer of my heart and soul Avtovaz arrived with their awful first quarter report. I still hesitate over what to do with this company. Hard decision and for this reason it remains as part of my portfolio.
For the report in full please go here and to read my previous summary please click on Avtovaz annual report 2015 and to find out more regarding Avtovaz then please visit Analysis of Avtovaz 2016.
In the financial statement below we see how car sales in Russia is far, far away from being good. This was the final quarter under the responsibility of Bo Inge Andersson as CEO. from here on Renault have once again taken over the steering of the wheel and we shall see how it plays out. In Q1 the sales were down by -21% and good news the costs were down by -10% but considering that the costs were higher than the sales we kind of need to rethink how good the news were... This then leads us to a very large negative figure which joins the club of previously poor results.
Conclusion: Avtovaz is doing very poorly and Russia is having a tough period. With increasing oil prices the Russian economy will also improve with customer spending to follow but I think there is still some way to go until that point. I will remain a very, very grumpy shareholder due to the loss of the Swedish CEO. One must however love this quarter report. no word was even spoken. None, zero, da nada. Three pages in total. One front page, one page with assets & liabilities and the financial statement. I only wish that the company would be as efficient as their quarter reports are.
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