|Title||SsangYong Motor Posts Profitable H1 in 9 Years|
▪ Achieving profits for three consecutive quarters, and first profitable H1 in 9 years
▪ Tivoli global sales surge by 50.9% contributing to largest H1 sales in 13 years since H1 2003
▪ Growth of Tivoli brand models helping drive turnaround this year
Seoul, S. Korea, July 29, 2016: SsangYong Motor Company (CEO Choi Johng-sik; www.smotor.com), part of the Mahindra Group, today announced that the company recorded profits for two consecutive quarters this year following Q4 2015, and it posted profitable H1 in 9 years since H1 2007.
In H1 2016, SsangYong sold a total of 74,577 units -50,696 in domestic sales and 23,881 in exports including CKD kits. It posted revenue of 1,777.2 billion won, an operating profit of 27.4 billion won, and a net profit of 20.4 billion won.
The company recorded its largest H1 sales volume in 13 years since H1 2003 (80,354 units) driven by Tivoli brand models –Tivoli and Tivoli Air (exports name: XLV) combined, which soared by 50.9% compared to H1 2015 in global sales.
The Tivoli brand models recorded the highest ever monthly sales in June, exceeding 8,000 units for the first time since its launch. The strong performance of the Tivoli brand models helped the company post a substantial sales and revenue growth in H1, 6.8% and 11.4% respectively.
In June 2016, the Tivoli brand models passed the 100,000 units mark in both production and sales in 17 months since its launch. This is the shortest period for any SsangYong model to hit the 100,000-mark.
The company’s H1 domestic sales also posted the highest half-year sales figure since H1 2004 (54,184 units), showing sales growth for six consecutive months with a rise of 11.6% over H1 2015.
SsangYong’s H1 exports decreased by 2.1% over the same period last year due to decreased demand from the emerging markets. However, the company expects a recovery as its monthly exports exceeded 4,000 units for three straight months since April, and the company expands the market with the launch of Tivoli Air globally.
With the sales increase of the Tivoli brand models, the company continued to post profits for three consecutive quarters in Q4 2015, Q1 2016 and Q2 2016. Based on this strong financial performance, the company posted its first profitable H1 in 9 years since H1 2007.
The sales volume increase also helped the company post an operating profit of 19.3 billion won in Q2 following the operating profit of 8.1 billion won in Q1 2016. As a result, the company recorded an operating profit of 27.4 billion won and a net profit of 20.4 billion won in H1.
Choi Johng-shik, CEO of SsangYong Motor, commented, “SsangYong has achieved strong performance with the Tivoli brand models, the company’s new growth engine,” adding, “SsangYong will achieve its goal of a turnaround this year, based on increasing sales of updated models including the Korando Sports as well as Tivoli brand models .”