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 the 9 months and 3rd quarter of 2015.
9m 2015 Highlights:
- Sales grew by 4.6% and amounted to 130.7 billion RUB (with VAT);
- Like-for-like sales were (4%) compared to 9m 2014;
- Online based sales grew by 36%;
- 7 new stores opened, selling space amounts to 628,000 sq. m.
Q3 2015 Highlights:
- Sales grew by 10% and amounted to 47.5 billion RUB, with VAT;
- Like-for-like sales increased by 3.6% as compared to Q3 2014.
In 9m 2015 the Company’s sales (if adjusted for revenue for goods prepaid in 2014 but delivered to customers in 2015) increased by 4.6% compared to the same period last year. The non-adjusted sales in 9M 2015 grew by 2.2% while LfL sales stood at (4%).
M.video online based sales in 9m 2015 (orders from Company’s online, including home delivery to customers + pickup in stores) increased by 36% to 13.4 billion RUB (with VAT), as compared to 9.8 billion RUB in 9m 2014.
In Q3 2015 M.video sales reached 47.5 billion Russian rubles (RUB), including VAT, demonstrating a 10% growth as compared to Q3 2014. The Company’s LfL sales in Q3 2015 increased by 3.6% year-on-year.
M.video opened 7 new stores in 9m 2015, while closed 9 stores. The total number of the Company’s stores stands at 366 in 158 cities of Russia as of the end of 9m 2015. The selling space of M.video’s network amounts to 628,000 sq. m while the total space amounts to 845,000 sq. m. as of September 30th, 2015.
Alexander Tynkovan, President and CEO of M.video, said: "We are pleased with the Company’s performance in the past 9 months, particularly with our Q3 results. Evidently M.video demonstrates the best growth in the Consumer Electronics market so far with a strong development of its strategic channel, Online Based Sales or Omni. The higher the penetration of the e-commerce, especially in the big cities, the better Omni works as we could see in Moscow where we have 50+ stores in the best locations and our customers enjoy ultimate shopping experience, including indigenous service and widest choice of products and ways how to shop – online, offline or both”.
He also added: “Despite we’re now facing challenging comparatives from the fourth quarter of 2014 in course of our current high season, M.video’s team remains optimistic on the foreseeable future as we continue to gain market share and outperform the Russian Home Electronics market while preserving unparalleled profitability and financial position in the industry”.
Summary of the 9 months and 3rd quarter 2015 performance:
Sales
| |||||||||
| 9m 2015 | 9m 2014 | % change y-o-y | Q3 2015 | Q3 2014 | % change y-o-y | |||
RUB million, with VAT (adjusted)* | 130,667 | 124,937 | 4.6% | - | - | - | |||
RUB million, with VAT | 127,726 | 124,937 | 2.2% | 47,500 | 43,159 | 10% | |||
RUB million, without VAT | 108,242 | 105,879 | 40,254 | 36,575 | |||||
Online Based Sales (Home delivery + Pickup)
| |||||||||
| 9m 2015 | 9m 2014 | % change y-o-y | ||||||
RUB million, with VAT | 13,392 | 9,841 | 36% | ||||||
RUB million, without VAT | 11,349 | 8,340 | |||||||
LfL Sales Performance**
| |||||||||
| 9m 2015 LfL Dynamics, % | Q3 2015 LfL Dynamics, % | |||||||
Russian rubles | (4%) | 3.6% | |||||||
Expansion
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| As of 30 September 2015 | As of 31 December 2014 | New 9m 2015*** | % change | |||||
Stores | 366 | 368 | (2) | (0,6%) | |||||
Selling space, sq.m | 628,000 | 630,500 | (2,500) | (0,4%) | |||||
Total space, sq. m | 845,000 | 848,500 | (3,500) | (0,4%) | |||||
* - the Q1 and accordingly 9m sales were adjusted for 2,941 (2,492 without VAT) million RUB recognized as revenue in January 2015 in accordance with IFRS; this amount was classified as prepayment in 2014 having physical delivery made in 2015 and recorded as revenue in January when products were delivered to customers.
** - LfL data is based upon a comparison of stores open at January 1, 2014 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
*** - net of closing 9 stores in 9m 2015.