M.video reports 38% increase in net profit for FY 2013.

OJSC “Company M.video” (“M.video” or the “Group”), Russia's largest consumer electronics retailer by revenue (MOEX: MVID), releases today its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for the year ended 31 December 2013.

M.video’s sales increased by almost 11% to 175 billion Russian rubles (RUB), including VAT in FY 2013. Revenue growth was mainly driven by opening of 40 new stores and rapid online sales expansion.

The Group’s gross profit increased by 16.4% to 38.4 billion RUB in 2013 (33 billion RUB in 2012) or as a % of revenue reached 25.9% (24.7% in 2012).

M.video’s operating profit (EBIT) reached 6.8 billion RUB in 2013 (5.4 billion RUB in 2012) and the EBIT margin improved to 4.5% (4.0% in 2012).

The Group’s EBITDA increased to 9.4 billion RUB versus 7.5 billion RUB in 2012 while an EBITDA margin improved to 6.3% as compared to 5.6% in 2012.

M.video’s net profit for 2013 increased by 38% to 5.7 billion RUB as compared to 4.1 billion RUB in 2012.

Alexander Tynkovan, President of OJSC “Company “M.video”, commented: “In 2013 we were able to achieve very good results in our EBITDA and Net Profit while continuing to maintain a very strong balance sheet and cashflow. I believe that is a clear signal for our shareholders of the Company’s cash generating abilities and its high potential to maintain generous dividend payments in the future”.

He also added: “I would like to highlight our success in Omni-Channel development in 2013: we expanded the online shopping capabilities to 52 cities in Russia. While Moscow and St Petersburg are leading the way for our Omni approach, we’re seeing very strong demand from our regional customers for shopping via both home delivery and pick up in store. A winning combination of online and physical stores under one brand lets the customers shop at their convenience knowing that pricing and services are the same no matter which channel they prefer in a moment of time”.