OJSC “Company “M.video” (MOEX: MVID), Russia’s leading consumer electronics retailer, announced today its unaudited sales, like-for-like sales (LfL) and expansion results for the full year and the 4th quarter of 2014.
FY 2014 Highlights:
- Sales increase of almost 19%
- Like-for-like sales of 12%
- Online based sales growth of 90%
- 39 new stores, selling space of 630.5K sq. m (eop)
Q4 2014 Highlights:
- Sales growth of 52%
- Like-for-like sales increase of 43%
- 11 new storesadded
In FY 2014 M.video sales reached almost 208 billion Russian rubles (RUB), including VAT, demonstrating 19% growth as compared to FY 2013. The Company’s LfL sales in FY 2014 increased by 12% year-on-year.
M.video’s online based sales in FY 2014 (orders from Company’s online, including home delivery to customers + pick-up in stores) increased by 90% to more than 18 billion RUB (with VAT), as compared to 9.5 billion RUB (with VAT) in FY 2013.
In Q4 2014 M.video sales increased by 52% as compared to Q4 2013 while LfL sales grew 43% versus Q4 2013.
Following the booming demand for Consumer Electronics due to the exchange rate deterioration in the high season of December 2014 M.video sales grew significantly by 73% to 43 billion RUB (with VAT) as compared to 25 billion RUB (with VAT) in December 2013.
M.video opened 39 new stores in 2014 (11 new stores in Q4 2014), while closed 4 stores. The total number of the Company’s stores increased to 368 in 158 cities. The selling space of M.video stores amounted to 630,500 sq. m, while the total space amounted to 848,500 sq. m as of December 31st, 2014, demonstrating an 8% increase compared to FY 2013 results.
Alexander Tynkovan, President and CEO of M.video, said: "Our 2014 results and growth are further evidence that the Omni-Channel is the preferred model for customers who are shopping for Consumer Electronic products. The Ruble weakness has contributed significantly to the increased demand in December but it is still important to note where customers spend their money: as the consumption exploded we again were able to offer best assortment and reasonable pricing to our customers. M.video is also the preferred partner for the major CE brands due to our market leadership, our focus on the customer and our very strong balance sheet”.
He also commented: “Our online based sales growth of 90% and reaching 9% of overall sales was assisted by the launch of the new web platform in 2014. Our system is easier to use and more customer orientated than internally developed systems preferred by other retailers. We feel this is going to be a differentiator in the future.”
Summary of the 12 months and the 4th quarter 2014 performance:
Sales (including online)*
| |||||||||
| FY 2014 | FY2013 | % change y-o-y | Q4 2014 | Q4 2013 | % change y-o-y | |||
207,570 | 174,690 | 19% | 82,633 | 54,338 | 52% | ||||
RUB million, without VAT | 175,907 | 148,042 | 70,028 | 46,049 | |||||
Online Sales (Home delivery + Pick up)
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| FY 2014 | FY2013 | % change y-o-y | ||||||
RUB million, with VAT | 18,144 | 9,547 | 90% | ||||||
RUB million, without VAT | 15,376 | 8,091 | |||||||
LfL Sales Performance**
| |||||||||
| FY 2014 LfLDynamics, % | Q4 2014 LfLDynamics, % | |||||||
Russian rubles | 12% | 43% | |||||||
Expansion
| |||||||||
| As of 31 December 2014 | As of 31 December 2013 | New 2014*** | % change | |||||
Stores | 368 | 333 | 35 | 10.5% | |||||
Selling space, sq. m | 630,500 | 582,500 | 48,000 | 8% | |||||
Total space, sq. m | 848,500 | 785,000 | 63,500 | 8% | |||||
* - comparative FY 2013 numbers are based on the reported audited results.
** - 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 (internet store sales included).
*** - net of closing 4 stores.