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 2015.
H1 2015 Highlights:
- Sales amounted to 83 billion RUB (with VAT);
- Like-for-like sales were (8%) compared to H1 2014;
- Online based sales grew by 29%;
- 4 new stores opened, selling space amounts to 625,000 sq. m.
Q2 2015 Highlights:
- Sales grew 4% and amounted to 36 billion RUB, with VAT;
- Like-for-like sales were (3%) as compared to Q2 2014.
In H1 2015 the Company’s sales (if adjusted for revenue for goods prepaid in 2014 but delivered to customers in 2015) increased by 1.7% compared to the first half last year. The non-adjusted sales in H1 2015 were (1.9%) while LfL sales stood at (8.1%).
M.video online based sales in H1 2015 (orders from Company’s online, including home delivery to customers + pickup in stores) increased by 29% to 8.3 billion RUB (with VAT), as compared to 6.4 billion RUB in H1 2014.
In Q2 2015 M.video sales reached 36 billion Russian rubles (RUB), including VAT, demonstrating a 4% growth as compared to Q2 2014. The Company’s LfL sales in Q2 2015 were (3%) year-on-year.
M.video opened 4 new stores in H1 2015 (including 1 new store in Q2 2015), while closed 8 stores. The total number of the Company’s stores stands at 364 in 157 cities of Russia as of the end of H1 2015. The selling space of M.video network amounts to 625,000 sq. m while the total space amounts to 841,000 sq. m. as of June 30th, 2015.
Alexander Tynkovan, President and CEO of OJSC “Company “M.video”, said: "In the first half of 2015 we again saw solid performance of our Internet business which nowadays stands for over 10% of total sales. Our Omni-Channel model works successfully and signals to all of our stakeholders that M.video is a powerful online player with a vast geographical footprint”.
He also commented on Q2 sales results: “The Q2 results are encouraging for us and the whole market as we again could achieve a positive revenue dynamic quite soon since December 2014 peaks. These results also make us more optimistic on the future, as we are going to add at least 20 new stores to our portfolio in the second half of 2015”.
Summary of the 1st half and 2nd quarter 2015 performance:
Sales
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| H1 2015 | H1 2014 | % change y-o-y | Q2 2015 | Q2 2014 | % change y-o-y | |||
RUB million, with VAT (adjusted)* | 83,167 | 81,779 | 1.7% | - | - | - | |||
RUB million, with VAT | 80,226 | 81,779 | (1.9%) | 36,132 | 34,703 | 4.1% | |||
RUB million, without VAT | 67,988 | 69,304 | 30,620 | 29,409 | |||||
Online Based Sales (Home delivery + Pickup)
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| H1 2015 | H1 2014 | % change y-o-y | ||||||
RUB million, with VAT | 8,294 | 6,418 | 29.2% | ||||||
RUB million, without VAT | 7,029 | 5,439 | |||||||
LfL Sales Performance**
| |||||||||
| H1 2015 LfLDynamics, % | Q2 2015 LfLDynamics, % | |||||||
Russian rubles | (8.1%) | (3.0%) | |||||||
Expansion
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| As of 30 June 2015 | As of 31 December 2014 | New H1 2015*** | % change | |||||
Stores | 364 | 368 | (4) | (1%) | |||||
Selling space, sq.m | 625,000 | 630,500 | (5,500) | (0.9%) | |||||
Total space, sq. m | 841,000 | 848,500 | (7,500) | (0.9%) | |||||
* - the Q1 and accordingly H1 sales were adjusted for 2,941 (2,492 without VAT) million RUB recognized as revenue in January 2015 in accordance with IFRS; this amount was classified as prepayment in 2014 having physical delivery made in 2015 and recorded as revenue in January when products were delivered to customers.
** - LfL data is based upon a comparison of stores open at January 1, 2014 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
*** - net of closing 8 stores in H1 2015.