OJSC “Company “M.video” reports retail sales up 5% for 9 months of 2009.

14.10.2009 14:21

OJSC “Company “M.video” (RTS, MICEX: MVID), one of the Russia’s largest consumer electronics retailers, announced today its unaudited consolidated retail sales, like-for-like sales (LfL) and expansion results for the 9 months and 3rd quarter of 2009.

9 Months 2009 Highlights:
  • Retail sales increased 5%
  • Like-for-like sales decline of 11%
  • Achieved net cash
  • Total space of 35,800 sq.m added
In the 9 months 2009 M.video retail sales reached 57,552 million Russian rubles (RUB) with VAT, demonstrating 5% growth as compared to the 9 months 2008. The Company’s LfL sales in the 9 months 2009 declined 11% year-on-year in RUB terms.

In 3Q 2009 M.video retail sales declined 5% in RUB terms while LfL sales reflected downward market trends and demonstrated negative year-on-year performance of -20% in RUB terms as compared to 3Q 2008.

M.video opened 14 new stores in the 9 months 2009; amongst them 7 stores were opened in 3Q 2009. The total number of the Company’s hypermarkets reached 169 stores as of September 30th, 2009 versus 157 stores opened by the year end 2008. The total space of M.video stores amounted to 448,000 sq.m as of September 30th, 2009 demonstrating a 7.4% increase as compared to FY2008 results. M.video now operates in 70 cities of the Russian Federation.

As of September 30th, 2009 the Company achieved a net cash position1 of RUB 341 million (total debt of RUB 1,113 million less cash and cash equivalents of RUB 1,454 million). During the 9 months 2009 M.video substantially decreased its overall debt by 85% as compared to year end 2008.

Alexander Tynkovan, President and CEO of OJSC “Company “M.video”, commented: "The Company continues to open new stores while focusing attention on reducing its need for bank financing and strengthening its position in the market. We are proud to be a publicly traded retail company that managed to achieve a net cash position and show positive sales growth in a declining market”.

Summary of the 9 months and 3rd quarter 2009 performance:

Retail Sales Performance*
 9 months 20099 months 2008% change y-o-yQ3 2009Q3 2008% change y-o-y
RUB million, with VAT57 55254 8714,9%19 11020 133-5,1%
RUB million, without VAT48 77346 5014,9%16 19517 062-5,1%
LfL Sales Performance**
 9 months 2009 LfL Dynamics, %Q3 2009 LfL Dynamics, %
Russian rubles-10,9%-19,6%
 As of 30 September 2009As of 31 December 2008New 9 months 2009% change
Total space, sq. m448 000416 50031 500***7.6%

1 Debt position is hold in Russian roubles. As of September 30, 2009 the Company had no FX related loans or credits in its portfolio.
* - M.video group has a functional currency of Russian rubles.
** - LfL data is based upon a comparison of stores open at January 1, 2008 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
*** - net after closing 2 stores in Q2 2009.