Ssangyong Motor Records Profitable Q1 2016
Ssangyong Motor Records Profitable Q1 2016,Following Profitable Q4 2015
- Ssangyong’s Q1 2016 global sales and revenue increase 2.3% and 6.9% respectively compared to Q1 2015 helped by Tivoli's growth of 76.6%
- Combined market share of Tivoli and Tivoli Air (XLV) jumped to 69.6% in compact SUV market, reflecting Tivoli brand’s leading presence
- Ssangyong to focus on maintaining its profitable trend by expanding global sales in line with start of Tivoli Air sales in Europe
Seoul, S. Korea, April 28, 2016: Ssangyong Motor (CEO Choi Johng-sik; www.smotor.com), part of the Mahindra Group, today announced that the company reported a profitable first quarter this year following a profitable fourth quarter last year.
In Q1 2016, Ssangyong sold a total of 33,666 units including 22,622 in domestic sales and 11,044 in exports, and posted revenue of 813.2 billion won, an operating profit of 8.1 billion won and a net profit of 2.3 billion won.
The company’s strong performance was supported by the global sales uptrend of the Tivoli brand – Tivoli and Tivoli Air (export name: XLV) – which grew by 76.6% over the same period last year. Its quarterly global sales and revenue increased by 2.3% and 6.9%respectively compared to Q1 2015.
Ssangyong’s domestic sales increased by 7.2% compared to the same period last year helped by Tivoli brand growing by 41.8% year-on-year after the launch of Tivoli Air.
The market share of Tivoli in the domestic compact SUV market jumped from 54.7% in 2015 to 69.6% in Q1 2016 by launching Tivoli Air, strengthening Tivoli brand’s dominance in the relevant market segment.
In particular, the number of contracts for Tivoli Air recorded 5,100 on a cumulative basis in one month since its launch in the beginning of March this year. It exceeded 50% of its annual domestic sales target of 10,000 units, creating a new sensation in the entry- level lower to medium SUV segment.
In the overseas market, European exports increased by more than 20% over the same period last year thanks to the Tivoli brand. However, the overall exports declined by 6.5% due to the decreasing demand in the emerging markets.
As year-on-year exports of the Tivoli brand increased substantially by more than 230%, Ssangyong’s overall exports are also expected to increase when the Tivoli Air starts to be sold abroad in earnest from May.
As its sales grew, the company’s financial performance in Q1 2016 also increased with an operating profit of 8.1 billion won and a net profit of 2.3 billion won, showing a swing from a loss in the first quarter of the previous year to a profit in this year’s first quarter.
Ssangyong Motor’s business performance and financial structure have improved substantially compared to Q1 2015, with major profitability indices such as the operating income showing improvements.
Choi Johng-sik, CEO of Ssangyong Motor, commented, “We posted two profitable quarters in a row by achieving a profitable first quarter this year thanks to the sales growth of the Tivoli brand,” adding, “With the addition of the Tivoli Air, we will further strengthen our leading presence in the small SUV segment and expand our global sales to maintain the current profitable trend.”
2016 Q1 Sales
|2016 Q1||2015 Q1||Yoy(%)|
2016 Q1 Profitability
|2016 Q1||2015 Q1||Yoy(%)|
|Operating income||81||-342||Trun to Profit|
|Profit before tax||24||-312||Trun to Profit|
|Net Profit||23||-312||Trun to Profit|
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