OJSC “Company M.video” (“M.video” or the “Group”), Russia's largest consumer electronics retailer (RTS, MICEX: MVID), releases today its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for the year ended December 31st, 2010.
M.video retail sales increased by 23% to 102 billion Russian rubles (RUB) with VAT in FY 2010. Growth in revenue was mainly driven by M.video’s expansion and opening a record number of 44 stores in 2010 as well as due to increased like-for-like stores sales of 9%. The Group’s gross profit increased to 22.4 billion RUB. M.video’s gross margin grew to 25.8% in FY 2010 as compared to 25.3% in FY 2009.
M.video’s operating profit (EBIT) increased by more than 50% to 3.2 billion RUB with the EBIT margin of 3.7% in FY 2010.
The Group’s EBITDA increased up to 4.5 billion RUB in FY 2010 as compared to 3.2 billion RUB in FY 2009 while the EBITDA margin amounted to 5.2% in FY 2010.
M.video’s net profit for the FY 2010 improved significantly and grew 184% to 2.2 billion RUB from 0.8 billion RUB.
Alexander Tynkovan, President of OJSC “Company “M.video”, commented that: “We demonstrated quite remarkable profitability improvements in FY 2010 while sustaining network expansion and preserving positive cash generation from our operations”. He also added: “Our solid financial position and improved profitability allows us to continue our expansion in Russia while expecting the Company to pay steady amounts in dividends for the foreseeable future”.
M.video key financial results for the FY 2010 based on consolidated financial statements:
| In millions of Russian rubles | 2010 | 2009 | y-o-y, % |
| Sales (with VAT),including | 102 147 | 85 558 | 19,4% |
| Retail sales (with VAT) | 101 935 | 82,982 | 22,8% |
| Net revenue,including | 86 565 | 72 507 | 19,4% |
| Net retail revenue | 86 386 | 70 324 | 22,8% |
| Gross profit | 22 361 | 18 360 | 21,8% |
| As % of net revenue | 25,8 | 25,3 | 0,5% |
| Operating expenses1 | 19 127 | 16 243 | 17,8% |
| As % of net revenue | 22,1 | 22,4 | (0,3%) |
| Operating profit (EBIT) | 3 234 | 2 117 | 52,8% |
| As % of net revenue | 3,7 | 2,9 | 0,8% |
| EBITDA | 4 523 | 3 244 | 39,4% |
| As % of net revenue | 5,2 | 4,5 | 0,7% |
| Net profit | 2 221 | 783 | 183,7% |
| As % of net revenue | 2,6 | 1,1 | 1,5% |
1 The operating expenses include selling, general and administrative expenses (SGA), other operating income and other operating expenses.