OJSC “Company “M.video” (RTS, MICEX: MVID), Russia’s largest consumer electronics retailer by revenue, announced today its unaudited sales, like-for-like sales (LfL) and expansion results for the 1st half and 2nd quarter of 2014.
H1 2014 Highlights:
- Sales increased by 4.5% to 81.8 billion Russian rubles (RUB), with VAT;
- Like-for-like sales were (2%) as compared to H1 2013;
- Online based sales grew by 91%
- 15 new stores opened, selling space increased to 605,000 sq. m.
Q2 2014 Highlights:
- Sales amounted to 34.7 billion RUB, with VAT;
- Like-for-like sales were (5.6%) as compared to Q2 2013.
In H1 2014 M.video sales reached 81.8 billion Russian rubles (RUB), including VAT, demonstrating a 4.5% growth as compared to H1 2013. The Company’s LfL sales in H1 2014 were (2%) year-on-year.
M.video’s online based sales in H1 2014 (orders from Company’s online, including home delivery to customers + pickup in stores) almost doubled and increased to 6.4 billion RUB (with VAT), as compared to 3.4 million RUB in H1 2013.
In Q2 2014 M.video sales remained flat and LfL sales were (5.6%) versus Q2 2013.
M.video opened 15 new stores in H1 2014 (8 new stores in Q2 2014), while closed 1 store in Q2 2014. The total number of the Company’s stores increased to 347 in 149 cities. The selling space of M.video network amounted to 605,000 sq. m while the total space amounted to 814,000 sq. m. as of June 30th, 2014.
Alexander Tynkovan, President and CEO of OJSC “Company “M.video”, said: "In the first half of 2014 we opened 15 new stores pursuing our target of 30 new openings for the full year. At the same time we enjoyed strong performance in our internet business with an overall growth of almost 100% which signifies that the Omni-Channel model works successfully”.
He also commented on Q2 sales results: “We saw a significant deterioration in the CE market in Q2.
This added to the 17 store reconstructions in Q2 impacted our overall quarterly sales results. These reconstructed stores coming back on stream in Q3 will help our full year results”.
Summary of the 1st half and 2nd quarter 2014 performance:
Sales
| |||||||||
| H1 2014 | H1 2013 | % change y-o-y | Q2 2014 | Q2 2013 | % change y-o-y | |||
RUB million, with VAT | 81,779 | 78,284 | 4.5% | 34,703 | 34,677 | 0.0% | |||
RUB million, without VAT | 69,304 | 66,342 | 29,409 | 29,387 | |||||
Online Based Sales (Home delivery + Pickup)
| |||||||||
| H1 2014 | H1 2013 | % change y-o-y | ||||||
RUB million, with VAT | 6,418 | 3,364 | 91% | ||||||
RUB million, without VAT | 5,439 | 2,851 | |||||||
LfL Sales Performance*
| |||||||||
| 1H 2014 LfLDynamics, % | Q2 2014 LfLDynamics, % | |||||||
Russian rubles | (2%) | (5.6%) | |||||||
Expansion
| |||||||||
| As of 30 June 2014 | As of 31 December 2013 | New 1H 2014 | % change | |||||
Stores | 347 | 333 | 14** | 4.2% | |||||
Selling space, sq.m | 605,000 | 582,500 | 23,500** | 3.9% | |||||
Total space, sq. m | 814,000 | 785,000 | 29,000** | 3.7% | |||||
* - LfL data is based upon a comparison of stores open at January 1, 2013 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
** - net of closing 2 stores in H1 2014