SVO JSC Revenue Increased 24.76% in 2019, with Profits More Than Double

MOSCOW, March 30, 2020 /PRNewswire/ -- Sheremetyevo International Airport JSC (SVO JSC), operator of Sheremetyevo International Airport, reported revenue of 39,239 million rubles in 2019, an increase of 24.76% compared to the same period in 2018, and net profits of 20,480 million rubles, an increase of 122.22%.

Revenue was up 14% for aviation activities and 11% for non-aviation activities. The growth in cost of sales amounted to 21.79%, a total of 12,962 million rubles.

Gross income of SVO JSC in 2019 amounted to 26,277 million rubles, which exceeded the level of 2018 by 26.27%. The company's net profit, totaling 20,480 million rubles, was due to both increased revenue and a change in the exchange rate.

Key Indicators Based on RAS (Russian Accounting Standards)

The Board of Directors of SVO JSC approved the financial statements of SVO JSC for 2019, which were prepared in accordance with Russian Accounting Standards (RAS), at a virtual meeting on March 25, 2020.

The Board of Directors also reviewed the opinion of the independent auditor of Ernst & Young LLC based on the results of the audit of financial and business operations and decided to recommend to the General Meeting of Shareholders of SVO JSC the approval of Ernst & Young LLC to audit the financial statements of SVO JSC for 2020 in accordance with Russian Accounting Standards (RAS), and separate financial statements of SVO JSC for 2020 and the consolidated financial statements of SVO JSC for 2020 in accordance with international financial reporting standards (IFRS).

The Board of Directors approved a list of activities aimed at finalizing corporate import phase-out plans of SVO JSC and its subsidiaries. In the future, the company will prioritize the procurement of modern domestic protection equipment against radiation and chemical and biological agents, in accordance with the guidelines of the Government of the Russian Federation.

Given the difficult epidemiological situation in the world, the Board of Directors approved a plan to counter the negative consequences of the coronavirus epidemic, which includes measures to protect SVO employees from the spread of coronavirus and ensure the stability of their work, in accordance with guidelines of the Government of the Russian Federation.

Restrictive measures introduced worldwide to counter the spread of the coronavirus, including closing of international borders, on international flights, reduction of domestic passenger traffic in Russia, and strong advice to citizens avoid travel, have negatively affected the air transport industry and led to a significant reduction in the number of passenger flights in and out of Sheremetyevo, and consequently, decreased the workload and administrative services.

In order to maintain the balanced operation of the airport, the Sheremetyevo management implemented a number of management decisions:

• significantly reduced all non-production costs;
• redistributed production resources and optimized technological processes;
• Terminals C and E are temporarily closed;
• optimized work schedules for employees.

Measures regarding the employee work schedule are also preventive and aimed at protecting health by minimizing contacts and allowing parents to spend time with children and control their movements while schools and other educational institutions are under quarantine.

List of the SVO JSC Baard of Directors members: Chairman of the Board of Directors of SVO JSC A.A. Ponomarenko, Member of the Board of Directors of SVO JSC A.I. Skorobogatko, General Director of SVO JSC M.M. Vasilenko, President of Sheremetyevo Holding LLC R.N. Zinoviev, First Vice-President - Investment Director of Sheremetyevo Holding LLC A.S. Smagin, Head of the Business Consulting Department of the Autonomous non-profit organization "Analytical Center under the Government of the Russian Federation" L.R. Nisenboim, Deputy Head of the Federal Agency for State Property Management I.S. Petrov, Deputy Minister of Transport of the Russian Federation A.A. Yurchik, Head of the Federal Agency for State Property Management V.V. Yakovenko.

SOURCE Sheremetyevo International Airport