ENP Newswire - 29 April 2014
Release date- 28042014 - Moscow, Russia - OJSC Detsky Mir ('Detsky Mir' or the 'Company'), the largest children's goods retail chain in Russia, announces its financial results for the 1st quarter ended March 31, 2014.
1st QUARTER 2014 FINANCIAL HIGHLIGHTS
Total number of stores increased from 252 to 258 driven by 3 new Detsky Mir branded stores and 3 new ELC branded stores
Total selling space went up from 320 thousand sq. m. to 324 thousand sq. m.
Net revenue up 35% compared to the 1st quarter 2013
Like-for-like sales grew 24.9% (18.3% in number of tickets and 5.6% in average ticket)
OIBDA for the 1st quarter 2014 is RUR 66.5million versus OIBDA for the 1st quarter 2013 of minus RUR 460.2 million
Mar 2014 LTM OIBDA of RUR 3.3 billion, an increase of 97.3% year-on-year
Net income for the 1st quarter 2014 is minus RUR 435.0 million versus minus RUR 595.1 million for the 1st quarter 2013
Mar 2014 LTM net income of RUR 1.3 billion, an increase of 172.2% year-on-year
Vladimir Chirakhov, Chief Executive Officer of Detsky Mir, commented:
'During the 1st quarter of 2014 Detsky Mir demonstrated extremely positive sales dynamics despite the seemingly negative macroeconomic environment and consumer spending growth slowdown in Russia. Like-for-like growth was 24.9% mainly driven by an 18.3% increase in number of tickets. This result reflects positive changes we implemented in the way of merchandising, loyalty program and pricing policy improvement. 3 new Detsky Mir branded stores and 3 new ELC branded stores were opened during the 1st quarter 2014. All new Detsky Mir stores were and will be further opened under new concept that allows us to combine the selling and entertainment zones in the single store and that is especially in demand in the children's goods retail.
I would like to highlight positive OIBDA result of RUR 66.5 million that was achieved for the first time in the 1st quarter of the year, particularly on the back of minus RUR 460.2 million in the 1st quarter 2013.This result is a testament to the many operational improvements implemented by management team in the end of 2012 and during 2013. LTM OIBDA of RUR 3.3 billion grew 97.3% compared to the respective period of the previous year. OIBDA margin during this period increased from 5.7% to 8.6%
During 2014 we plan to maintain further positive like-for-like sales dynamics as well as to implement our development program and intend to open at least 30 new Detsky Mir branded stores and 10 new ELC branded stores'.
 Financial results are based on management accounts.
OJSC Detsky Mir is the largest children's goods retailer in Russia. The Company incorporates the nationwide retail store chain Detsky Mir, luxury centre Children's Gallery 'Yakimanka', the Russian chain of ELC - Early Learning Center, and Detsky Mir and ELC Internet stores. As of March 31, 2014, Detsky Mir chain consisted of 227 Detsky Mir stores in Russia and Kazakhstan, and incorporated 30 ELC stores in Russia. The total selling space of the Company stores is c. 324 thousand sq.m. JSFC Sistema is the sole shareholder of Detsky Mir. For further information please refer to our corporate website: www.det-mir.ru
JSFC Sistema is the largest publicly-traded diversified holding company in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of US$ 35.9 billion for the full year 2013, and total assets of US$ 43.2 billion as at December 31, 2013. Sistema's global depository receipts are listed under the symbol 'SSA' on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol 'AFKS' on the MOEX Stock Exchange. Sistema was ranked number 308 in the 2013 edition of the Fortune Global 500 list. Website: www.sistema.com
Some statements in this document may contain assumptions or forecasts in relation to forthcoming events of Detsky Mir Company or JSFC Sistema. Such statements include words 'expect,' 'believe,' 'anticipate,' 'estimate,' 'intend,' 'will,' 'could,' 'may' or 'might', their negative forms or other similar expressions. It is important to note that these statements are only assumptions and actual events or results may differ materially from what was stated. We will not reconsider such statements in order to bring them in line with real events and circumstances that can occur after the stated date or reflect events not expected to occur. Due to many factors, the actual results of Detsky Mir Company and JSFC Sistema may differ materially from those contained in our assumptions or forecasts, including, among others, general economic conditions, competitive environment we are operating in, risks associated with operation in Russia, rapid technological and market changes in our lines of business, as well as many other risks directly related to Detsky Mir Company and JSFC Sistema.
For further information:
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