ACRA assigns M.Video–Eldorado Group a rating of A+(RU), outlook stable

10.03.2021 14:30

PJSC (M.Video-Eldorado Group, the “Company” or the “Group”; MOEX: MVID), Russia’s leading e-commerce and consumer electronics retailer and part of SAFMAR Group owned by Mikhail Gutseriev, was assigned a credit rating of A+(RU) with a stable outlook from the Analytical Credit Rating Agency (ACRA). This is the first ACRA rating assigned to PJSC The credit rating from ACRA was assigned to PJSC for the first time. In 2020, M.Video-Eldorado was assigned Expert RA rating at ruA- with a positive outlook.

According to ACRA, the A+(RU) rating is based on M.Video-Eldorado Group’s strong market position and its highly rated business profile. Total online sales account for more than half of the Group’s GMV; the Company’s network consists of retail outlets of various formats and is part of its logistics infrastructure for online orders. ACRA experts pointed to the Company’s high level of corporate governance “associated with the implementation of a successful business development strategy and the Company’s well-established management practices. Risk management at M.Video–Eldorado is regulated and minimizes all major types of risk. Financial transparency is at a very high level,” says ACRA’s official statement.

According to ACRA’s press release, the Group’s financial profile is marked by strong profitability. With its efficient cost management, the Group maintains an FFO margin before fixed payments and taxes above 10%.

“Strong logistics combined with the close integration of online and offline segments are driving high sales growth. With its advanced online platform and infrastructure, the Company was able to quickly adapt to the COVID-19 restrictions introduced in 2020. The Group’s business is also supported by its reliance on the two leading brands in the Russian household appliances and consumer electronics market, M.Video and Eldorado,” says ACRA.

Ekaterina Sokolova, M.Video–Eldorado Group’s Chief Financial Officer, said:

“The high rating assigned by ACRA confirms our financial and operational efficiency. During a challenging period of restrictions related to COVID-19, the Group was able to demonstrate higher credit rating and strengthen its financial stability and a successful business model amid double digit sales growth. I am certain that our unique technologies and our development focus on digitalization and improvement of a seamless customer experience will allow us to increase profitability in the long term and reach new heights while respecting the interests of key stakeholders.”