Kalashnikov is a leading supplier to Russia's military.
Russia's economy is nosediving due to low oil prices and Western sanctions, but the maker of assault rifles doubled its production last year and posted three billion rubles ($45 million) in revenue, up 28% compared with 2013, the company said.
"Despite the sanctions, Kalashnikov reported a net profit for the first time in seven years," Kalashnikov general director Alexei Krivoruchko said in a statement emailed to CNN.
The AK-47 maker was one of the first Russian companies to be slapped with trade sanctions over the country's incursion into Ukraine.
Kalashnikov attributed the growth to developing new customers, mainly in Asia and Africa, and a new marketing strategy adopted in 2014.
It launched a new brand aimed at civilian consumers, including clothing and accessories, as well as a new slogan: Protecting peace.
Related: AK-47s: Soon to be made in the USA
The Russian military and other Russian law enforcement agencies are among Kalashnikov's most important customers, and they're spending heavily on new weapons.
Defense and national security were the only departments to escape 10% budget cuts ordered by President Vladimir Putin.
Russian military spending is set to rise by 85% between 2012 and 2017.
The company made 120,000 weapons in 2014. It expects production to grow by as much as 25% in 2015.
Related: Kalashnikovs get new look to boost sales
CNNMoney (London) February 6, 2015: 8:17 AM ET
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