OJSC “Company “M.video” reports 7% sales growth in H1 2010.

20.07.2010 14:32

OJSC “Company “M.video” (RTS, MICEX: MVID), one of the Russia’s largest consumer electronics retailers, announced today its unaudited retail sales, like-for-like sales (LfL) and expansion results for the 1st half and 2nd quarter of 2010.

H1 2010 Highlights:
  • Retail sales increased by 7% to 41 billion Russian rubles (RUB), with VAT;
  • Like-for-like sales showed (2.5%) as compared to H1 2009;
  • Net cash position exceeded 200 million RUB as of June 30, 2010;
  • 10 new stores opened, total space increased to 489,000 sq.m.
In Q2 2010 M.video retail sales increased by 22% and LfL sales were 11% positive versus Q2 2009.

M.video opened 10 new stores in H1 2010 (7 new stores in Q2 2010) while closed 1 store in Q1 2010. The total number of the Company’s supermarkets reached 186 stores as of June 30th, 2010. The total space of M.video stores amounted to 489,000 sq.m, demonstrating a 5% increase as compared to FY 2009 results.

The group’s net cash position as of June 30th, 2010 exceeded 200 million RUB.

Alexander Tynkovan, President and CEO of OJSC “Company “M.video”, said: “We’re quite pleased with our second quarter positive retail revenue and double digit like-for-like sales of 11%. These results were underpinned by growing consumer confidence and increased number of purchases in our network. At the same time we noticed that the volume of consumer loans increased in our network signaling customers’ readiness to buy our products and services. We view that as a good sign for both the consumer electronics market and M.video performance in the second half of the year”.

He added: “Our successful store format and focus on the customer allows us to open new stores while remaining in a net cash position”.

Summary of the 1st half and 2nd quarter 2010 performance:

Retail Sales Performance
 H1 2010H1 2009% change y-o-yQ2 2010Q2 2009% change y-o-y
RUB million, with VAT41 15438 4637%18 64515 32922%
RUB million, without VAT34 87632 59615 80112 991
LfL Sales Performance*
 1H 2010 LfL Dynamics, %Q2 2010 LfL Dynamics, %
Russian rubles(2,5%)11%
 As of 30 June 2010As of 31 December 2009New 1H 2009% change
Total space, sq. m489 000467 00022 000**5%

* - LfL data is based upon a comparison of stores open at January 1, 2009 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
** - net of closing