PJSC “M.video” (MOEX: MVID), Russia’s leading consumer electronics retailer, announced today its unaudited sales, like-for-like sales (LfL) and expansion results for the full year and the 4th quarter of 2015.
FY 2015 Highlights:
- Sales amounted to 192 billion RUB (with VAT)
- Like-for-like sales demonstrated (12.7%)
- Online based sales grew by 12.5% and amounted to 11% of total turnover;
- 20 new stores opened, selling space increased to 644,000 sq. m (eop)
Q4 2015 Highlights:
- Sales amounted to 61 billion RUB (with VAT)
- 13 new stores opened
In FY 2015 M.video sales reached almost 192 billion Russian rubles (RUB), including VAT, demonstrating (5.5%) as compared to FY 2014. The Company’s LfL sales in FY 2015 were (12.7%) year-on-year. In Q4 2015 M.video sales demonstrated (23.1%) year-on-year while reaching 61 billion RUB (with VAT).
Those results were achieved in comparison to the abnormally high base of the Q4 and particularly December 2014, caused by the peaking customers’ demand due to the exchange rate deterioration. Still throughout 2015, except for December, the Company’s sales remained positive although the Russian Home Appliances and Consumer Electronics market continued to decline.
M.video’s online based sales in FY 2015 (orders from Company’s online, including home delivery to customers + pick-up in stores) increased by 12.5% to over 20 billion RUB (with VAT), as compared to 18 billion RUB (with VAT) in FY 2014, ending up again in the positive territory even in view of the high base from the previous year.
M.video opened 20 new stores in 2015 (13 new stores in Q4 2015), while closed 10 stores. The total number of the Company’s stores increased to 378 in 161 cities. The selling space of M.video stores amounted to 644,000 sq. m, while the total space amounted to 865,000 sq. m as of December 31st, 2015, demonstrating a 2% increase compared to FY 2014 results.
Alexander Tynkovan, President and CEO of M.video, said: "Our 2015 results again proved that we had designed and implemented quite a sufficient business model which allows us to weather the storm successfully and outperform the Russian Consumer Electronics market while remaining cash generative, profitable business. Our online based sales continued to grow effectively and reached almost 11% of total sales versus 9% in the previous year”.
He also added: “M.video recently strengthened its management team adding new highly experienced CFO and still aims to catch momentum continuing to gain market share and outperform the major online and offline industry players. We will also continue to open new stores in 2016: as of today our pipeline includes at least 20 new openings”.
Summary of the 12 months and the 4th quarter 2015 performance:
Sales (including online)*
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| FY 2015 | FY2014 | % change y-o-y | Q4 2015 | Q4 2014 | % change y-o-y | |||
RUB million, with VAT | 191,916 | 203,181 | (5.5%) | 61,250 | 79,692 | (23.1%) | |||
RUB million, without VAT | 162,641 | 172,187 | 51,907 | 67,536 | |||||
Online Based Sales (Home delivery + Pick up in stores)
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| FY 2015 | FY2014 | % change y-o-y | ||||||
RUB million, with VAT | 20,416 | 18,144 | 12.5% | ||||||
RUB million, without VAT | 17,302 | 15,376 | |||||||
LfL Sales Performance**
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| FY 2015 LfLDynamics, % | Q4 2015 LfLDynamics, % | |||||||
Russian rubles | (12.7%) | (26.4%) | |||||||
Expansion
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| As of 31 December 2015 | As of 31 December 2014 | New 2015*** | % change | |||||
Stores | 378 | 368 | 10 | 2.7% | |||||
Selling space, sq. m | 644,000 | 630,500 | 13,500 | 2.1% | |||||
Total space, sq. m | 865,000 | 848,500 | 16,500 | 1.9% | |||||
* - comparative FY 2014 numbers are based on the reported audited results. Q4 2014 comparative numbers were corrected down in the amount of 2,941 (2,492 without VAT) million RUB recognized as revenue in 2015 in accordance with IFRS; this amount was classified as prepayment in 2014 having physical delivery made in January 2015 and recorded as revenue when products were delivered to customers. This amount has been added to the composition of sales in 2015.
** - LfL data is based upon a comparison of stores open at January 1, 2014 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
*** - net of closing 10 stores in 2015.