M.video (MOEX: 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 2016.
H1 2016 Highlights:
- Sales increased 19% and amounted to 98.6 billion RUB (with VAT);
- Like-for-like sales grew by 20%;
- Online based sales increased 34%;
- 6 new stores opened, selling space amounts to 651,000 sq. m.
Q2 2016 Highlights:
- Sales grew by 22% and amounted to 44 billion RUB, with VAT;
- Like-for-like sales increased 21% as compared to Q2 2015.
In H1 2016 the Company’s sales increased 19% compared to the first half last year and reached almost 99 billion Russian rubles (RUB), including VAT while LfL sales grew by 20%. Both sales and LFL have shown double-digit growth in all key product categories, on the back of noticeable average unit price increase.
M.video online based sales in H1 2016 (orders from Company’s online, including home delivery to customers + pickup in stores) increased 34% to 11 billion RUB (with VAT), compared to 8.3 billion RUB in H1 2015.
In Q2 2016 M.video sales grew by 22% and reached 44 billion, including VAT. The Company’s LfL sales in Q2 2016 increased 21% year-on-year.
M.video opened 6 new stores in H1 2016 (including 5 new stores in Q2 2016), while closed 2 stores due to their relocation. The total number of the Company’s stores amounts to 382 in 162 cities of Russia as of the end of H1 2016. The selling space of M.video network amounts to 651,000 sq. m while the total space amounts to 872,000 sq. m. as of June 30th, 2016.
Alexander Tynkovan, President of M.video, said: "In the first half of 2016 we achieved outstanding results across all channels thanks to our customers who chose to make their purchases with the best CE retailer in the market. The strong value proposition and competitive pricing allow us to meet customers’ demand for high quality products and technologies; people tend to look for best promo offers for more expensive goods such as Large Home Appliances and use consumer credit for buying newest gadgets, primarily smartphones”.
Michael Tuch, CEO of LLC M.video Management also commented: “Our Internet business continues to demonstrate healthy growth both via Home Delivery and Pickup in stores, in part also due to M.video vast physical presence in the regions of Russia. I’m proud to mention that in June we expanded our operations to Vladivostok covering now whole country from East to West”.
Summary of the 1st half and 2nd quarter 2016 performance:
Sales
| |||||||||
| H1 2016 | H1 2015* | % change y-o-y | Q2 2016 | Q2 2015 | % change y-o-y | |||
RUB million, with VAT | 98,646 | 83,143 | 19% | 44,072 | 36,132 | 22% | |||
RUB million, without VAT | 83,598 | 70,460 | 37,349 | 30,620 | |||||
Online Based Sales (Home Delivery + Pickup)
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| H1 2016 | H1 2015 | % change y-o-y | ||||||
RUB million, with VAT | 11,099 | 8,294 | 34% | ||||||
RUB million, without VAT | 9,406 | 7,029 | |||||||
LfL Sales Performance**
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| H1 2016 LfLDynamics, % | Q2 2016 LfLDynamics, % | |||||||
Russian rubles | 20% | 21% | |||||||
Expansion
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| As of 30 June 2016 | As of 31 December 2015 | New H1 2016*** | % change | |||||
Stores | 382 | 378 | 4 | 1% | |||||
Selling space, sq.m | 649,000 | 644,000 | 5,000 | 0.8% | |||||
Total space, sq. m | 872,000 | 865,000 | 7,000 | 0.8% | |||||
* - H1 2015 comparative information is based on M.video IFRS Consolidated Financial Statements.
** - LfL data is based upon a comparison of stores open at January 1, 2015 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
*** - net of closing (relocation) of 2 stores in Q2 2016.