M.video reports 4.5% sales growth in H1 2014.

17.07.2014 10:30

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 1st half and 2nd quarter of 2014.

H1 2014 Highlights:

  • Sales increased by 4.5% to 81.8 billion Russian rubles (RUB), with VAT;
  • Like-for-like sales were (2%) as compared to H1 2013;
  • Online based sales grew by 91%
  • 15 new stores opened, selling space increased to 605,000 sq. m.

Q2 2014 Highlights:

  • Sales amounted to 34.7 billion RUB, with VAT;
  • Like-for-like sales were (5.6%) as compared to Q2 2013.

In H1 2014 M.video sales reached 81.8 billion Russian rubles (RUB), including VAT, demonstrating a 4.5% growth as compared to H1 2013. The Company’s LfL sales in H1 2014 were (2%) year-on-year.

M.video’s online based sales in H1 2014 (orders from Company’s online, including home delivery to customers + pickup in stores) almost doubled and increased to 6.4 billion RUB (with VAT), as compared to 3.4 million RUB in H1 2013.

In Q2 2014 M.video sales remained flat and LfL sales were (5.6%) versus Q2 2013.

M.video opened 15 new stores in H1 2014 (8 new stores in Q2 2014), while closed 1 store in Q2 2014. The total number of the Company’s stores increased to 347 in 149 cities. The selling space of M.video network amounted to 605,000 sq. m while the total space amounted to 814,000 sq. m. as of June 30th, 2014.

Alexander Tynkovan, President and CEO of OJSC “Company “M.video”, said: "In the first half of 2014 we opened 15 new stores pursuing our target of 30 new openings for the full year. At the same time we enjoyed strong performance in our internet business with an overall growth of almost 100% which signifies that the Omni-Channel model works successfully”.

He also commented on Q2 sales results: “We saw a significant deterioration in the CE market in Q2.

This added to the 17 store reconstructions in Q2 impacted our overall quarterly sales results. These reconstructed stores coming back on stream in Q3 will help our full year results”.

Summary of the 1st half and 2nd quarter 2014 performance:

 

 

Sales

 

 

H1 2014

H1 2013

% change y-o-y

Q2 2014

Q2 2013

% change y-o-y

RUB million, with VAT

81,779

78,284

4.5%

34,703

34,677

0.0%

RUB million, without VAT

69,304

66,342

29,409

29,387

 

Online Based Sales (Home delivery + Pickup)

 

 

H1 2014

H1 2013

% change y-o-y

RUB million, with VAT

6,418

3,364

91%

RUB million, without VAT

5,439

2,851

 

LfL Sales Performance*

 

 

1H 2014 LfLDynamics, %

Q2 2014 LfLDynamics, %

Russian rubles

(2%)

(5.6%)

 

Expansion

 

 

As of

30 June 2014

As of

31 December 2013

New

1H 2014

% change

Stores

347

333

14**

4.2%

Selling space, sq.m

605,000

582,500

23,500**

3.9%

Total space, sq. m

814,000

785,000

29,000**

3.7%

* - LfL data is based upon a comparison of stores open 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 2 stores in H1 2014