PJSC Ukrainian Automobile Corporation (UkrAVTO), one of the major players on the Ukrainian car market, saw more than UAH 1 billion in net loss in 2014 against UAH 47.070 million in net profit in 2013.

The company's net revenue in 2014 fell by 29%, to UAH 2.017 billion, the company said in a report posted in the National Securities and Stock Market Commission's information disclosure system.

Its gross profit in 2014 rose by 23.4%, to UAH 313.550 million, operating profit grew by 14%, to UAH 95.060 million. At the same time, expenses under "other costs" totaled UAH 1.193 billion against UAH 2.240 million in 2013.

Last year, the Corporation's current liabilities rose by 52.5%, to UAH 782.760 million, long-term liabilities grew by 28%, to UAH 1.041 billion.

In 2014, UkrAVTO optimized all processes, without realizing significant projects due to the difficult economic and geopolitical situation in Ukraine, the report said. The company closed its affiliated branch Avto bord but created Illichivsk logistic center on the basis of a closed bus assembly line.

The number of employees fell by nearly 49%, to 1,583 workers in 2014 against 3,134 in 2013 and 3,079 in 2012.

Ukraine and Uzbekistan are the main markets for UkrAVTO with vehicles also being exported to Kazakhstan, Belarus Russia, Azerbaijan and Ethiopia.

"Due to the escalating crisis with Russia, exports to countries of the Customs Union [Russia, Belarus, Kazakhstan] by Zaporizhia Automobile Plant, ZAZ, [where UkrAVTO owns a controlling stake] fell nearly by 90%," the report said.

The Corporation said there is a high level of competition on the spare parts market, where UkrAVTO's share is no more than 7%. In 2015, UkrAVTO plans to increase its share to 9% by retrieving lost clients via loyalty programs and product line-expansion.

In 2015, the Corporation plans to increase its share to 5% of the Ukrainian car services market against 2.5%-3% in 2014.

UkrAVTO plans to sell 17,400 passenger cars, commercial vehicles and buses on domestic and foreign markets in 2015 (no figures for 2014 were provided). The company estimates possible volume of new vehicles at 77,100 units in 2015 against 105,957 units in 2014 (a 52% drop from 2013).

The company plans to attract post-warranty vehicles due to promotional programs, optimize the activity of distributors sand dealerships, and increase the share of its products on export markets by searching for new ones.

The report said that UkrAVTO capital investments totaled UAH 59.980 million, including the acquisition of property assets for UAH 43.26 million in 2014. The company injected investment in the construction of production facilities and fuel filling stations. In 2015, the Corporation sees no significant investment in reconstruction or acquisition of new fixed assets due to the economic crisis in Ukraine.

JSC UkrAVTO was registered in 1992, and owns a controlling stake in ZAZ and in the automobile factory FSO in Poland. The Corporation's structure includes more than 400 car services all over Ukraine, distributors and dealerships of leading car brands, and a network of fuel filling stations.

The Corporation's brand portfolio includes ZAZ (Lanos, Sens, Forza, Vida), commercial TATA and I-VAN buses, Chery, Lada, Chevrolet, Kia and Mercedes, Jeep, Chrysler, Dodge.

In 2013, the Corporation cut net profit almost by 75%, to UAH 47.068 million, net revenue fell by 6%, to UAH 2.840 billion.