Russia's Rostec Beats Sanctions With 18% Growth in Income During 2015

  • Our Bureau
  • 09:27 AM, August 3, 2016
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Russia's Rostec Beats Sanctions With 18% Growth in Income During 2015
Russia's Rostec Beats Sanctions With 18% Growth in Income During 2015

Russia’s defence and high technology holding company, Rostec declared 18% increase in consolidated revenues, amounting to 1 trillion and 140 billion rubles in 2015, despite the sanctions regime imposed against the firm.  

"Against the sanctions pressure, the general decline of the Russian economy and fall of industrial production index by more than 3 %, we managed to increase the revenue of the State Corporation to 1 trillion 140 billion rubles, demonstrating a growth by 18 % compared to 2014", said CEO of Rostec,Sergey Chemezov during the meeting with the President of Russia Vladimir Putin.  "The volume of military exports grew by 39 % in 2015 (up to $ 4.6 billion). Therefore, the production of civilian goods increased by 6 % (up to 336 billion rubles). The steady growth in all financial indicators enables us to develop also the civil industries. According to the new strategy of Rostec, our main task is to ensure Russia's technological advantage in the highly competitive global markets. The planned investment volume for the development up to 2025 is 3,086 billion rubles"

Rostec emphasized the development of internal resources and competencies, which, based on the results of 2015, allowed demonstrating a steady progress in terms of financial, economic and industrial parameters, according to the company press release.

The consolidated net income of the State Corporation was 99 billion rubles, and that of EBITDA – 253 billion rubles. The net profit margin was 8.68 %, having increased by 6 basis points. EBITDA margin was increased by 5.58 points (up to 22.19 %). The corporation average wage in 2015 increased up to 41,000 rubles (in 2014, Rostec average wage was 37,000 rubles, and Russia average wage was 32,600 rubles  as per FSSS data). The corporation tax payments to budgets of all levels exceeded 160 billion rubles.

According to Minister of Industry and Trade of Russia Denis Manturov, despite the negative trends in the economy, following the results of 2015 Rostec Corporation demonstrated a progress in the performance and steady financial results. The Corporation has made the best use of the ruble devaluation impact, strengthening its position both in internal, and foreign markets.

"The Corporation's enterprises participated in the stable implementation of the state defense procurement, the volume of which has increased by 11 % in comparison with 2014," said Russia's industry and trade minister Denis Manturov.

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