OJSC “Company “M.video” (RTS, MICEX: MVID), one of the Russia's largest consumer electronics retailers, announced today its consolidated unaudited net retail sales and like-for-like (LfL) results for the first 9 months of 2008 and the 3rd quarter 2008.
In the first 9 months of 2008 M.video demonstrated 50% year-on-year growth of its net retail sales in Russian roubles terms (62% growth in USD terms) and 17% year-on-year growth of like-for-like sales in RUR terms (25% in USD terms) as compared to the same period of 2007.
In Q3 2008 M.video increased its net retail sales by 37% in RUR terms (45% increase in USD terms) and demonstrated 19% year-on-year growth of like-for-like sales in RUR terms (25% growth in USD terms) as compared to Q3 2007.
The group's net debt position as of September 30, 2008 amounted to RUR 5.0 billion (gross debt of RUR 10.4 billion and cash and cash equivalents of RUR 5.4 billion).
Alexander Tynkovan, President and CEO of M.video commented on the results: "We are pleased to provide our shareholders and investors with such excellent results and remarkable growth achieved through the 9 months of 2008. We would like also to share our confidence in the group's strong performance in the peak Christmas sales season and till the end of the year due to the business solvency, sufficient financial management and outstanding efforts of all our team".
Summary of the 9 months and 3rd quarter 2008 performance:
| Net Retail Sales Performance* | ||||||
| 9m 2008 | 9m 2007 | % change y-o-y | Q3 2008 | Q3 2007 | % change y-o-y | |
| RUR million | 46,599 | 31,037 | 50% | 17,363 | 12,687 | 37% |
| USD million** | 1,939 | 1,200 | 62% | 717 | 496 | 45% |
| LfL Sales Performance*** | ||||||
| 9m 2008 LfL Growth, % | Q3 2008 LfL Growth, % | |||||
| Russian rubles | 17% | 19% | ||||
| US dollars | 25% | 25% | ||||
| Expansion | ||||||
| As of 30 September 2008 | As of 31 December 2007 | New stores 9m 2008 | % change | |||
| Stores | 140**** | 122 | 20 | 15% | ||
| Total space, sq. m | 374,500 | 323,400 | 51,100 | 16% | ||
* - net retail sales figures are exclusive of VAT.
** - M.video group has a functional currency of Russian rubles. The US dollars are presented for convenience purpose only. The USD amounts are prepared using the weighted average exchange rates over the periods presented.
*** - LfL data is based upon a comparison of stores open at January 1, 2007 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
**** - two stores were closed through the period presented.