OJSC “Company M.video” reports its audited consolidated FY 2008 IFRS results.

01.07.2009 14:11

OJSC “Company “M.video” (“M.video” or the “Group”), one of the Russia's leading consumer electronics retailers (RTS, MICEX: MVID) announces today its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for the full year ended 31 December 2008.

“M.video” sales in 2008 grew by 37% up to Russian roubles (RuR) 84,4 billion. The Group’s IFRS net revenue in 2008 increased to RuR 71,486 million from RuR 52,317 million in 2007. Retail revenue (the sale of goods and services including internet sales) increased by 41% up to RuR 68,131 million (80,395 million with VAT). Growth in revenues was driven by the Group’s expansion and healthy double-digit like-for-like sales growth.

“M.video” IFRS gross profit increased 49% in 2008 reaching RuR 17,876 million. The Group’s gross margin improved to 25% compared to 22.9% in 2007. Improvement of the gross margin was achieved from increased scale of operations and growth in sales of high margin products and services.

The Group’s EBITDA increased by 38% and reached RuR 3,596 million with the EBITDA margin increasing to 5.03% in 2008 from 4.98% in 2007.

M.video IFRS net profit for 2008 grew to RuR 1,256 million demonstrating 94% increase as compared to 2007.

Alexander Tynkovan, President and CEO of M.video commented on FY 2008 financial statements: “We achieved those positive benchmarks in 2008 due to the high sales volumes as well as focus on the growth of the high margin products and services share. In the reported period M.video became the fastest growing consumer electronic retail chain in Russia while building strong financial position and significantly improving its net debt. Today M.video is a definite leader of the Russian consumer electronic retail sector, demonstrating positive development of the major financial indicators and strengthening its competitive market positions”.

M.video FY 2008 key financial indicators calculated based on consolidated financial statements:

Russian rubles, million20082007y-o-y, %
Sales (with VAT)84 35361 73437%
Net revenue, incl.71 48652 31737%
     Retail revenue68 13148 41041%
Gross profit(1)17 87611 96549%
     Gross margin25,022,9-
Operating expenses15 1439 88153%
     As % of net revenue21,218,9-
Operating profit (EBIT)(1)2 7332 08431%
     EBIT margin, %3,84,0-
EBITDA3 5962 60738%
     EBITDA margin5,034,98-
Net profit1 25664994%
     Net margin1,81,2-

* All key financial indicators are calculated without 18% VAT (value added tax) unless mentioned otherwise.
(1) These numbers were reclassified (adjusted) for 2007 due to changes in accounting policies following adoption of the new and amended IFRS standards and IFRIC interpretations.