Ukraine’s major railcar-building enterprise Dneprovagonmash JSC (DVM, Kamenskoye, Dnepropetrovsk region), controlled by businessman Serhiy Tihipko’s TAS financial and industrial group, ended the first half of 2023 with a net profit of UAH 57.85 million against a loss of almost UAH 25 million in the same period last year.
According to the company’s interim financial statements released on Wednesday in the SECP disclosure system, its net income from sales increased by 17.2% to UAH 578 million.
In January-June, the company increased its gross profit 3.6 times to UAH 80.72 million, generating UAH 58.68 million in operating profit against a loss of UAH 20.04 million.
Compared to the beginning of this year, DVM reduced current liabilities by 12.4% to UAH 261.38 mln, while long-term liabilities increased by 13.6% to UAH 59.84 mln.
The report does not provide the number of cars produced and sold during the reporting period.
Among the price risks for the company, the report notes the risk of higher prices for components, materials and energy (material costs account for 80-90% of the cost of production), and lower prices for railcars.
As reported, in the first quarter of this year DVM received a net profit of UAH 37.04 million against a loss of UAH 18.07 million for January-March 2022, with net income growing by 32% to UAH 396.92 million.
Thus, in the second quarter of 2023, the company’s net profit amounted to UAH 20.81 million compared to a loss of UAH 6.93 million in April-June 2022, with net income falling by 5.9% to UAH 181.09 million.
“Dneprovagonmash” is one of Ukraine’s leading enterprises in the design and manufacture of freight cars. Annual production capacity is 9 thousand units.
As reported, an extraordinary meeting of shareholders of DVM on July 25 decided to transform it into TAS Dneprovagonmash LLC.
DVM’s net income for 2022 increased by 77.3% to UAH 1 billion 108.7 million, net profit amounted to UAH 48.64 million against a loss of UAH 111.3 million a year earlier. At the same time, railcar sales grew by 35% to 623 units, while production grew by 21% to 577 units.
TAS Group was founded in 1998 by businessman Tigipko. Its business interests include financial sector (banking and insurance segments) and pharmacy sector, as well as industry, real estate and venture projects.
