We hit our stride: Corum Group summarized the 2017 results

05 April 2018

We hit our stride: Corum Group summarized the 2017 results


  • The transit blockade in Donbass became one of the key events that underpinned the economic development of Ukraine in 2017. After the shutdown of a number of mines in Donetsk and Lugansk regions in February 2017, which accounted for 27% of the business plan, Corum Group concentrated its efforts on fulfilling the orders of key customers from Ukraine, Russia, Kazakhstan, Vietnam, and Estonia. This provided overfulfilment of the business plan for 2017 and increase in the 2016 performance by key indicators.
  • The number of concluded contracts increased by 110% compared to 2016 and amounted to UAH 2.9 billion.
  • The sales volume increased by 38% to the actual results of 2016 and amounted to almost 2 billion UAH.
  • In 2017, the export share in the total sales pattern reached 41%, whereas in 2016 this indicator was just 28%.
  • The investments aimed at increasing the capacity of production bottlenecks amounted to almost UAH 90 million, which is 1.8 times the amount of 2016. This resulted in an increase in the commercial product release by 1.5 times - from UAH 1.35 billion to UAH 1.9 billion. The multifunctional machining center Doosan (Korea) for Corum Svet Shakhtyora Plant and the deep hole drilling machine LOCH (Germany) for Corum Druzhkovka Machine-Building Plant were the most important acquisitions. Further implementation of the investment projects will provide for manufacture of the commercial products for UAH 2.5 billion.
  • 2017 was marked by new products:
  • - shearer CLS450 was introduced into the market and successfully tested;

    - fan system with the fans ВО-42,5Р3 was launched at CJSC Zaporozhye Iron Ore Works; permit for use of the fans ВО-РЗ was obtained;

    - on request of Ojamaa (Estonian mine), scraper conveyer СП326 for oil shale extraction was upgraded;

    - new double-column support L successfully passed the first stage of tests;

    - production of the shearer КДК-500 was mastered at Corum Svet Shakhtyora Plant;

    - tunnelling machine КПД was produced at Corum Druzhkovka Machine-Building Plant for the first time ever;

    - new model of the shearer CLS400V was developed.

  • Demand for new equipment was increased. Its share in the sales pattern in 2017 was 52%, whereas it amounted to 38% in 2016. The service volume grew by 6% compared to 2016: from UAH 898 million to UAH 952 million.

Key financial indicators of Corum Group

12 months of 2017 VS 12 months of 2016:

  • The consolidated proceeds increased by 44% and amounted to UAH 1.995 billion.
  • The value of the concluded contracts is UAH 2.872 billion, which is 110% higher than in 2016.
  • For 2017, EBITDA increased by almost 3 times and amounted to UAH 352 million.
  • The stock turnover in the working capital reduced by 10 days – up to 68 days; economic effect is UAH 65 million.
  • The company credit portfolio was practically halved, and it amounts to UAH 546 million by the end of 2017.

“It was a very successful year. We overfulfilled almost all the indicators of the business plan which was quite ambitious. Thanks to the appropriateness of the chosen strategy and the implemented systemic changes, efficient and concerted efforts of the whole team, we were able to achieve high financial results. Now, when the challenging period is over, the primary focus is on maintaining the positions already conquered, as well as on implementing all structural and organizational changes,” comments on Yakiv Sidliarenko, Chief Executive Officer of Corum Group.

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