Apollo Tyres B.V (expressed hereinafter as Apollo Tyres Europe) achieved a significant increase in profitability during its last full financial year (April 2020 to March 2021), despite a decline in revenue.
Audited consolidated revenues for Apollo Tyres Europe show a fall in revenues of 5%, to close at EUR 497 million for the financial year. The reduction was caused by sharp contraction in sales demand during the first three months of the financial year resulting from restrictions associated with the Covid-19 pandemic.
By contrast, operating profit (EBITDA, excluding other income) increased by 39% for the financial year. The company completed manufacturing specialisation at its plant in Enschede in the Netherlands and recorded a one-time exceptional cost of EUR 69 million. This resulted in nett profit for the financial year finishing at negative EUR 52 million.
Consolidated Annual Performance Highlights, FY2020-21 (April-March) vs FY2019-20:
- Revenue (from Operations) was down 5%, to close at EUR 497 million, as compared to EUR 523 million during the previous financial year
- EBITDA (excluding other income) reported was EUR 62 million (12.4% of revenues), compared with EUR 44 million (8.5% of revenues) during the previous financial year
- Nett loss (after exceptional item of EUR 69 million) stood at EUR 52 million, as compared to a nett loss of EUR 9 million during the previous financial year
Commenting on the results, Benoit Rivallant, President of Apollo Tyres, Europe Region, said, “What started as an extremely challenging year, with lockdowns across Europe, ended on a very healthy note for us, with robust recovery across market segments and countries. Focused efforts on inventory and receivables reduction has aided cashflow, which has strengthened our balance sheet.
“Ensuring business continuity and safeguarding the wellbeing of our employees has been of paramount importance throughout this pandemic and considering the ongoing situation we cannot let our guard down. While we expect the year ahead to present a number of challenges, the strategic initiatives taken during the last financial year has made the company stronger and will support our efforts to achieve sustainable growth and further improve our margins.”
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