SsangYong Motor Company, part of the Mahindra Group, has announced that for three cumulative quarters of this year from January to September 2016, the company has recorded sales of 111,683 units, revenue of KRW 2,627.9bn (US$2.339m), operating profit of KRW 20bn and a net profit of KRW 23bn.
This performance (through the end of Q3) was supported by the strong global sales of the Tivoli brand models, which grew by 39.7% year-on-year. YTD sales and revenue rose by 7.5% and 8.8% year-on-year respectively, resulting in the highest sales performance in 14 years. This is the first time in 9 years since 2007 that the company reports a profit during this period.
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In the first three quarters of 2016, its domestic sales recorded 73,929 units with an increase of 6.8% year-on-year. These are the highest domestic sales in 12 years since 2004 (75,669 units) supported by the popularity of the Tivoli brand models which are growing at 37.6%. Its domestic sales performance has been improving for seven consecutive years.
In Q3 2016, SsangYong’s exports achieved the highest quarterly sales in seven quarters since Q4 2014 (15,278 units) thanks to expanding exports of the Tivoli brand models. The company’s January-September 2016 sales grew by 9% over the same period last year showing a healthy sales uptrend.
SsangYong posted a net profit for four consecutive quarters from Q4 2015 to Q3 2016 based on strong sales growth. It resulted in 20 billion won of operating profit and 23 billion won of net profit in the first three quarters of this year, indicating a steady turnaround since Q4 2015.
In Q3 2016, the company posted sales of 37,106 cars, revenue of KRW 850.8bn, operating loss of KRW 7.3bn and a net profit of KRW 2.7bn.
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By GlobalDataOverall, Ssangyong’s business performance and major indices such as sales, revenue and profit & loss are continuously showing an improvement since the turn to profit in Q4 2015.
The upgraded models including the Korando Sports 2.2, launched in Q3 with a stronger powertrain, as well as the 2017 Tivoli featuring high-tech safety technologies have just started to be sold globally, and the company expects to further sales growth in Q4 2016.
Choi Johng-sik, CEO of SsangYong Motor Company, said: “Despite economic uncertainties including the depression in the emerging markets as well as domestic market, and the unstable exchange rate, the Tivoli brand continues to grow which helps the Company maintain its profitable trend,” adding, “We will achieve a profitable year with strong sales of the face-lifted models and a more efficient production system.”
2016 Q3 Sales
Sales volume: Q3 2016 – 37,106 units; YTD 2016 – 111,683 units; Q3 2015 – 34,074 units; YTD 2015 – 103,874 units; Q3 Yoy – 8.90%; YTD Yoy – 7.50%
Domestic: Q3 2016 – 23,233 units; YTD 2016 – 73,929 units; Q3 2015 – 23,833 units; YTD 2015 – 69,243 units; Q3 Yoy – (-)2.5%; YTD Yoy – 6.80%
Export: Q3 2016 – 13,873 units; YTD 2016 – 37,754 units; Q3 2015 – 10,241 units; YTD 2015 – 34,631 units; Q3 Yoy – 35.50%; YTD Yoy – 9.00%
(Full-CKD): Q3 2016 – – units; YTD 2016 – 90 units; Q3 2015 – (-)1 units; YTD 2015 – (-)223 units; Q3 Yoy – (-)100%; YTD Yoy – (-)59.6%
2016 Q3 P&L
Revenue: Q3 2016 – KRW 850.8bn; YTD 2016 – KRW 2,627.90bn; Q3 2015 – KRW 819.5bn; YTD 2015 – KRW 2,415.30bn; Q3 Yoy – 3.80%; YTD Yoy – 8.80%
Operating income(loss): Q3 2016 – KRW (-)7.3bn; YTD 2016 – KRW 20bn; Q3 2015 – KRW (-)3.6bn; YTD 2015 – KRW (-)57.7bn; Q3 Yoy – Expanded loss; YTD Yoy – Turn to profit
PBT (loss): Q3 2016 – KRW 2.7bn; YTD 2016 – KRW 23bn; Q3 2015 – KRW (-)27.1bn; YTD 2015 – KRW (-)81.1bn; Q3 Yoy – Turn to profit; YTD Yoy – Turn to profit
Net profit (loss): Q3 2016 – KRW 2.7bn; YTD 2016 – KRW 23bn; Q3 2015 – KRW (-)27.1bn; YTD 2015 – KRW (-)81.1bn; Q3 Yoy – Turn to profit; YTD Yoy – Turn to profit
2016 Quartlerly Sales and P&L
Sales: Q1 – 33,666 unit/billion won; Q2 – 40,911 unit/billion won; Q3 – 37,106 unit/billion won
Revenue: Q1 – 813.2 unit/billion won; Q2 – 964 unit/billion won; Q3 – 850.8 unit/billion won
Operating income(loss): Q1 – 8.1 unit/billion won; Q2 – 19.3 unit/billion won; Q3 – (-)7.3 unit/billion won
PBT: Q1 – 2.4 unit/billion won; Q2 – 18 unit/billion won; Q3 – 2.7 unit/billion won
Net profit: Q1 – 2.3 unit/billion won; Q2 – 18 unit/billion won; Q3 – 2.7 unit/billion won
