M.video demonstrated double-digit growth rate in 2016 – the Company’s sales increased by 13%

18.01.2017 07:30

 

Moscow, January 18, 2017. M.video (MOEX: MVID), Russia’s largest consumer electronics retailer by revenue, announced today its unaudited sales, like-for-like sales (LfL) and expansion results for   full year and the 4rd quarter of 2016.

 

2016 Highlights:

 

·                Sales increased by 13.3% to RUB 216.2 billion, including VAT;

·                Like-for-like sales grew by 10.7%;

·                Online based sales (Online home delivery + Pick Up) increased by 26.6%;

·                22 new stores opened, selling space amounts to 663,000 sq. m.

 

Q4 2016 Highlights:

 

·               Sales grew by 5.9% and amounted to RUB 63.7 billion, including VAT;

·               Like-for-like sales remained at the last year level.

 

In 2016, the Company’s sales increased by 13.3% compared to the same period last year and reached almost RUB 216.2 billion, including VAT. LfL sales grew by 10.7% in 2016. M.video demonstrated the positive dynamics of the key indicators due to double-digit growth in sales of all product categories and continued to increase its CE market share.

M.video online based sales in 2016 (orders from the Company’s online stores, including Home Delivery and Pick Up in stores) increased by 26.6% to RUB 25.9 billion, including VAT, as compared to RUB 20.4 billion in 2015.

In Q4 2016 M.video sales grew by 5.9% and reached RUB 63.7 billion, including VAT. The Company’s LfL sales in Q4 2016 remained at the same level as last year.

M.video opened 22 new stores in 2016 (including 10 new stores in Q4 2016) and closed 2 stores due to their relocation. The total number of the Company’s stores amounts to 398 in 165 cities of Russia as of the end 2016. The selling space of M.video network amounts to 663,000 sq. m, while the total space amounts to 895,000 sq. m. as of December 31th, 2016.

Alexander Tynkovan, president of M.video, said: “2016 results clearly demonstrated efficiency of M.video business strategy and the positive impact of renewed management model. Despite the lack of positive economic factors in 2016 M.video demonstrated double-digit growth rate in 2016 and managed to increase its market share and to strengthen its leading position. We successfully implemented all development plans, increasing our network by 20 stores and significantly expanded our presence in Far East. Now M.video is operating in 165 cities from Kaliningrad to Vladivostok”.

“At the beginning of 2016 M.video established the position of Chief Executive Officer. The operating team has managed to launch in short terms a number of innovative IT projects, E-commerce and retail sales. Thus, in more than 170 stores across Russia we opened specialized m_mobile areas presenting ​​smartphones and related gadgets that allow us to introduce all the newest models at the best prices for our customers. The company’s strategy in 2017 is aimed at the search and implementation of new solutions allowing M.video to reduce operating costs and grow sales including additional services and accessories”, Alexander Tynkovan pointed.

Enrique Fernandez, M.video CEO, also commented: “M.video continues to focus on key markets and remains the largest expert in the field of home appliances and electronics. Wide assortment and attractive customer pricing enabled us to increase sales both in value and units in major segments such as large household appliances, TV, smartphones. M.video during 2016 also set new technical solutions for consumer credits and offered its clients the best free credit propositions in the market which made prices more affordable and drove sales. We see high potential in credit offerings for the current year.

Launched in 2016 m_mobile, m_game and a number of other projects aimed at attracting new audiences, increasing sales of services and accessories provided us with the first results. Telecom share in M.video total sales has shown 65.2% growth over 2016 reaching 16.4% share in total M.video sales. Omni channel retail model that offers customers the same product range&#44#44; prices and services both in stores and online is still the most efficient in Russian market. With the strong growth in online sales, more than 75% of our customers still prefer to pay and pick up their purchases in M.video stores”.

 

Summary of the 4rd quarter and 2016 performance:

 

 

Sales

 

 

2016

2015*

% change y-o-y

Q4 2016

Q4 2015*

% change y-o-y

RUB million, with VAT

216 168

190 796

13.3%

63 684

60 129

5.9%

RUB million, without VAT

183 193

161 691

53 970

50 956

 

Online Based Sales (Home Delivery + Pick Up)

 

 

2016

2015

% change y-o-y

RUB million, with VAT

25 854

20 417

26.6%

RUB million, without VAT

21 910

17 302

 

LfL Sales Performance**

 

 

2016 LfLDynamics, %

Q4 2016 LfLDynamics, %

Russian rubles

10.7%

0.1 %

 

Expansion

 

 

As of

31 December 2016

As of

31 December 2015

New

2016***

% change

Stores

398

378

20

5.3%

Selling space, sq.m

663 000

644 000

19 000

3.0%

Total space, sq. m

895 000

865 000

30 000

3.5%

 

* - Comparable network performance indicators in 2015 and the fourth quarter of 2015 are published on the basis of audited data.

** - LfL data is based upon a comparison of stores open at January 1, 2015 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.

*** - net of closing (relocation) of 2 stores in Q2 2016.