M.video reports 3.5% sales growth in 9m 2014.

20.10.2014 09:48

OJSC “Company “M.video” (RTS, MICEX: 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 2014.

9m 2014 Highlights:

  • Sales increased by 3.5% to 125 billion Russian rubles (RUB), with VAT;
  • Like-for-like sales were (2%) as compared to 9m 2013;
  • Online based sales grew by 76%
  • 28 new stores opened, selling space increased to 617,000 sq. m.

Q3 2014 Highlights:

  • Sales increased by 1.7% to 43.2 billion RUB, with VAT;
  • Like-for-like sales were (2%) as compared to Q3 2013.

In 9m 2014 M.video sales reached 125 billion Russian rubles (RUB), including VAT, demonstrating a 3.5% growth as compared to 9m 2013. The Company’s LfL sales in 9m 2014 were (2%) year-on-year.

M.video’s online based sales in 9m 2014 (orders from Company’s online, including home delivery to customers + pick-up in stores) increased by 76% to almost 10 billion RUB (with VAT), as compared to 5.6 million RUB in 9m 2013.

In Q3 2014 M.video sales increased by 1.7% and LfL sales were (2%) versus Q3 2013.

M.video opened 28 new stores in 9m 2014 while closed 3 stores. The total number of the Company’s stores increased to 358 in 153 cities. The selling space of M.video stores amounted to 617,000 sq. m and the total space amounted to 830,000 sq. m, demonstrating a 6% increase as compared to FY 2013 results.

Alexander Tynkovan, President and CEO of OJSC “Company “M.video”, said: “We continue to see excellent results in our online based sales growth now representing 8% of the overall sales. Our “online sales, pick-up in store” growth continues to demonstrate that our customers want to visit our conveniently located stores. The Omni-Channel success is dependent upon a great store network along with an easy to use web platform, which is exactly the M.video model.”

He also added : “We have opened 28 stores in 9m 2014 and will upgrade our guidance to 40 stores for the full year.” 

Summary of the 9 months and 3rd quarter 2014 performance:

 

Sales

 

 

9m2014

9m2013

% change y-o-y

Q3 2014

Q3 2013

% change y-o-y

RUB million, with VAT

124,937

120,720

3.5%

43,159

42,436

1.7%

RUB million, without VAT

105,879

102,305

36,575

35,963

 

Online Based Sales (Home delivery + Pickup)

 

 

9m 2014

9m 2013

% change y-o-y

RUB million, with VAT

9,841

5,599

76%

RUB million, without VAT

8,340

4,745

 

LfL Sales Performance*

 

 

9m 2014 LfLDynamics, %

Q3 2014 LfLDynamics, %

Russian rubles

(2%)

(2%)

 

Expansion

 

 

As of

30 September 2014

As of

31 December 2013

New

9m 2014

% change

Stores

358

333

25**

7.5%

Selling space, sq. m

617,000

582,500

34,500**

6%

Total space, sq. m

830,000

785,000

45,000**

6%

* - LfL data is based upon a comparison of stores opened at January 1, 2013 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.

** - net of closing 3 stores in 9m 2014.