Группа компаний «Детский мир» объявляет операционные результаты за 9 месяцев 2016 года

Detsky Mir Group (“Detsky Mir” or “the Group”), Russia’s largest children’s goods retailer, announces its unaudited operating results for 9 months of 2016, which ended on 30 September 2016.

KEY OPERATING RESULTS FOR 9 MONTHS 2016

• Group unaudited revenue increased by 36% to RUB 54.2bn, vs. RUB 40.0bn for the same period in 2015
• Like-for-like sales at Detsky Mir stores in Russia grew by 12.7%[1], with the number of checks growing by 4.2% and the average check increasing by 8.2%
• Group stores increased to 465 with total retail floor space of approximately 535,000 sq.m. as a result of the opening of 40 new Detsky Mir stores in 9 months 2016

Vladimir Chirakhov, CEO of Detsky Mir Group, said:

“Detsky Mir Group again confirmed its position as the leader on the Russian children’s goods market in terms of volume and revenue growth. For 9 months 2016, we achieved a strong revenue growth rate of 36%. The approximately 12.7% growth in comparable sales (like-for-like) continued to be the main driver of revenue growth; it was achieved thanks to an increase of the average check size of 8.2% and an increase in the number of checks of 4.2%.

 “E-commerce continues to demonstrate solid financial performance. The Group’s revenue from this segment more than doubled year on year for 9 months 2016. One of the main drivers of improvement in e-commerce is the successful integration of online and offline platforms, as well as the widespread presence of Detsky Mir stores in all key regions of the country, that allowed us to provide customers with timely deliveries“.

Detsky Mir Group continues to rapidly expand its retail chain. For 9 months 2016, we opened 40 Detsky Mir stores and one Early Learning Centre store; of these, 21 are in the Moscow region and two are in Kazakhstan. Detsky Mir is represented in 157 Russian cities and five Kazakh cities. At least eighty stores will be opened in dozens of cities in FY 2016, including at least five in Kazakhstan. 

The sales geography of the new product line for expectant mothers increased nearly six-fold in September. Now more than 200 stores provide customers with about 90 SKUs of the new products, most of which are produced in Russia. The product brands are Just Mom Ulla (Private label of Detsky Mir), FEST and SUCCESS. Maternity clothes can be purchased in the online store: www.detmir.ru.

([1])  Here and elsewhere like-for-like (LFL) sales and average check are calculated in Russian roubles. Trends are presented for the comparative period (9m 2016 to 9m 2015) and include only Detsky Mir stores in Russia.

([2]) Net chain growth since the beginning of 2016 amounted to 39 stores including relocation

DETSKY MIR GROUP INCREASES NET INCOME TO RUB 627 MLN IN H1 2016

Detsky Mir Group (“Detsky Mir” or “the Group”), Russia’s largest children’s goods retailer, announces its unaudited financial results under International Financial Reporting Standards (IFRS) for the six months ended 30 June 2016.

KEY FINANCIAL RESULTS FOR H1 2016

• OIBDA[1] increased nearly twofold to RUB 2.4bn in H1 2016 vs RUB 1.3bn in H1 2015, while OIBDA margin reached 7.1%;
• Group revenue increased by 36.3% to RUB 33.7bn vs. RUB 24.7bn in H1 2015;
• Like-for-like sales at Detsky Mir stores in Russia grew by 13.0%[2], with the number of checks growing by 1.6% and the average check increasing by 11.2%;
• Gross profit increased by 32.8% year-on-year to RUB 11.2bn vs. RUB 8.4bn in H1 2015; gross margin reached 33.2%;
• Selling, administrative and other operating expenses[3] as a share of revenue decreased by almost 3p.p. to 26.1% compared to 28.8% in H1 2015, driven by increased operational efficiency;
• Net income increased by 70.2% year-on-year to RUB 627mln;
• Net debt/adjusted OIBDA LTM ratio[4] as of 30 June 2016 improved to 1.8x vs 2.6x at the end of H1 2015.

Vladimir Chirakhov, CEO of Detsky Mir Group, said:

“Despite the weak macroeconomic environment Detsky Mir Group continued to demonstrate solid growth of operating and financial indicators in H1 2016.

Consolidated revenue increased by 36.3% year-on-year to RUB 33.7bn. Like-for-like sales at Detsky Mir stores grew by 13.0%, contributing significantly to the increase in sales.

Our previously approved strategy to improve operational efficiency had a positive affect on the Company’s financial results. Commercial, administrative and other operating expenses as a share of revenue decreased by almost 3p.p. As a result, Detsky Mir Group’s OIBDA nearly doubled year-on-year to RUB 2.4 bn. Net income also demonstrated a positive trend, increasing by 70.2% year-on-year.

The expansion plan is being implemented in full, and since the beginning of the year 20 new stores have been opened. In 2016, the Company is increasing its pace of expansion in Kazakhstan, with a new store having been opened in Almaty in June. At least four supermarkets in various cities across the country will be opened before the end of the year.

Business expansion typically picks up during the second half of the year.. In total the Group will open at least 80 Detsky Mir stores in 2016.

FINANCIAL PERFORMANCE IN H1 2016 VS. H1 2015

FINANCIAL PERFORMANCE IN 12 MONTHS ENDED 30 JUNE 2016

([1]) OIBDA was calculated based on the financial statement under IFRS by adding depreciation costs to operating income.

([2]) Here and elsewhere, like-for-like (LFL) sales and average check are calculated in Russian roubles. Trends are presented for the comparative period (H1 2016 to H1 2015) and include only Detsky Mir stores in Russia.

([3]) Selling, general and administrative expenses and other operating expenses are calculated without depreciation and amortization.

([4]) Adjusted OIBDA LTM excludes one-off effects related to the disposal of the Yakimanka building and payments under the long-term incentive scheme.

([5]) Net chain growth since the beginning of 2016 amounted to 19 stores including relocations

([6]) Excluding one-off effects related to the disposal of the Yakimanka building and payment of bonuses under the long-term incentive scheme

([7]) Excluding one-off effects related to the disposal of the Yakimanka building and payment of bonuses under the long-term incentive scheme

([8]) Excluding one-off effects related to the disposal of the Yakimanka building, payment of bonuses under the long-term incentive scheme and other non-operating one-off costs

DETSKY MIR GROUP ANNOUNCES OPERATING RESULTS FOR 1st HALF 2016

Detsky Mir Group (“Detsky Mir” or “the Group”), Russia’s largest children’s goods retailer, announces its unaudited operating results for the first half of 2016, which ended on 30 June 2016.

KEY OPERATING RESULTS FOR 1st HALF 2016

• Group unaudited revenue increased by 36% to RUB 33.7bn, vs. RUB 24.7bn in 1H 2015
• Like-for-like sales at Detsky Mir stores in Russia grew by 13.0%[1], with the number of checks growing by 1.6% and the average check increasing by 11.2%;
• Group stores increased to 444 with total retail floor space of approximately 511 th. sq.m. as a result of the opening of 20 new Detsky Mir stores in 1H 2016.

Vladimir Chirakhov, CEO of Detsky Mir Group, said:

“Unaudited consolidated revenue in the first half of 2016 increased by 36% year-on-year. Despite the continued decline in Russian retail sales, we maintained the double-digit pace of sales growth at comparable stores, with like-for-like sales growth of 13.0%.

Detsky Mir Group remains committed to its strategic goals of expanding its geographical footprint and improving its operational efficiency. In the first half the Group opened 20 new stores, including 11 Detsky Mir stores in the Moscow region and in Kazakhstan. As well as openning our first stores in Moscow region towns including Stupino, Sergiev Posad, Voskresensk and Istria, we have continued to expand outside the capital region, with opening in Kamensk-Uralsky (Urals). At the end of June the 400th Detsky Mir store was opened.

Dynamic growth and our strong financial position mean we are able to adjust our previously announced plan of geographical expansion. In 2016, the Company will open at least 80 Detsky Mir stores instead of the previously planned 50.

E-commerce remains our fastest growing segment. In 1H 2016 Group revenue from this segment more than doubled year on year, driven principally by a higher conversion rate.”

([1])  Here and elsewhere like-for-like (LFL) sales and average check are calculated in Russian roubles. Trends are presented for the comparative period (H1 2016 to H1 2015) and include only Detsky Mir stores in Russia.

([2]) Net chain growth since the beginning of 2016 amounted to 19 stores including relocation

DETSKY MIR GROUP ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR 1st QUARTER 2016

Detsky Mir Group (“Detsky Mir” or “the Group”), Russia’s largest children’s goods retailer, announces its unaudited financial results under International Financial Reporting Standards (IFRS) for the first quarter of 2016, which ended on 31 March 2016.

KEY FINANCIAL RESULTS FOR 1st QUARTER 2016

• Group unaudited revenue increased by 35.1% to RUB 16.4bn, vs. RUB 12.2bn in Q1 2015;
• Like-for-like sales at Detsky Mir stores in Russia grew by 13.1%[1], with the number of checks growing by 0.9% and the average check increasing by 12.1%;
• Gross profit increased by 25.2% year-on-year to RUB 5.5bn vs. RUB 4.4bn in Q1 2015; the gross margin reached 33.4%;
• Selling, general and administrative expenses[2] as a share of revenue decreased by almost 2 p.p. to 28.5% compared with 30.3% in Q1 2015, driven by increased operational efficiency;
• OIBDA increased by 16.9% year-on-year to RUB 0.8bn vs RUB 0.7bn in Q1 2015; the OIBDA margin reached 4.9%;
• Net income more than quadrupled year-on-year to RUB 0.1bn;
• The net debt/adjusted OIBDA LTM ratio[3] as of March 2016 improved to 2.0x vs 2.3x in Q1 2015.

Vladimir Chirakhov, CEO of Detsky Mir Group, said:

“Detsky Mir Group continued to actively expand in the first quarter: unaudited consolidated revenue increased by 35.1% year-on-year to RUB 16.4bn. We maintained the double-digit pace of sales growth at comparable stores, with like-for-like sales growth of 13.1%.

Selling, general and administrative expenses as a share of revenue decreased by nearly 2 p.p. as we implemented projects to improve operational efficiency and automated business processes, thereby optimizing our back-office and sales headcount. OIBDA increased by 16.9% to RUB 806mln in Q1 2016.

Kazakhstan remains one of our priority areas of focus. In the first quarter, like-for-like sales growth (KZT) at Detsky Mir stores in Kazakhstan was 50.3%. Although our Kazakh stores account for a relatively small proportion of total sales, we see great business opportunities in this area, and plan to open at least five stores in 2016.”

FINANCIAL PERFORMANCE IN Q1 2016 VS. Q1 2015

FINANCIAL PERFORMANCE IN 12 MONTHS ENDING 31 MARCH 2016

***

([1]) Here and elsewhere like-for-like (LFL) sales and average check are calculated in Russian roubles. Trends are presented for the comparative period (Q1 2016 to Q1 2015) and include only Detsky Mir stores in Russia.

([2]) Selling, general and administrative expenses, and other operating expenses are calculated without depreciation and amortisation

([3]) Adjusted OIBDA LTM excludes one-off effects related to the disposal of the Yakimanka building and payments under the long term incentive scheme;

([4]) Chain growth since the beginning of 2016 amounted to four stores excluding relocation

([5]) Excluding one-off effects related to payment of bonuses under the long term incentive scheme

([6]) Excluding one-off effects related to the disposal of the Yakimanka building and payment of bonuses under the long term incentive scheme

([7]) Excluding one-off effects related to the disposal of the Yakimanka building, payment of bonuses under the long term incentive scheme and other non-operating one-off costs

DETSKY MIR GROUP ANNOUNCES OPERATING RESULTS FOR 1st QUARTER 2016

Detsky Mir Group (“Detsky Mir” or “the Group”), Russia’s largest children’s goods retailer, announces its unaudited operating results for the first quarter of 2016, which ended on 31 March 2016.

KEY OPERATING RESULTS FOR 1st QUARTER 2016

• Group unaudited revenue increased by 35% to RUB 16.4bn, vs. RUB 12.2bn in Q1 2015
• Detsky Mir’s like-for-like sales gained 13.1%[1] (with the number of checks growing by 0.9%, and the average check increasing by 12.1%)
• Group stores increased to 429 with total retail floorspace of approximately 495,000 sq. m. as a result of the opening of four new Detsky Mir stores in Q1 2016.

Vladimir Chirakhov, CEO of Detsky Mir Group said:

“As competitors rolled back growth plans, in the first quarter Detsky Mir continued to expand its chain, increasing the number of Group retail outlets to 429 stores. Unaudited consolidated revenue in the first quarter increased by 35% year-on-year to RUB 16.4bn. This significant growth in revenue was mainly driven by increased traffic in stores opened in 2015 and 2014, as well as an increase in like-for-like sales of 13.1%.

 In 2015 Detsky Mir Group became the largest taxpayer in Russia among children’s goods retailers. Total taxes paid in 2015 increased by 11.9% to RUB 3.7bn. Total taxes paid to the Republic of Kazakhstan increased by 13.7% to RUB 59.6mln.

Detsky Mir continues to adhere to its policy of limiting price growth on children’s goods. One promising area is the conclusion of new rouble-denominated supply contracts with international partners. In the first quarter we negotiated a rouble-based contract for the supply of children’s clothing with Reima, which will allow our customers to buy popular Finnish products at attractive prices.

In 2016, Detsky Mir Group will continue growing at a strong pace, with plans to open at least 50 new stores and hypermarkets, including five retail facilities in Kazakhstan.”

([1])  Like-for-like (LFL) and average check are hereinafter specified as year-on-year in Russian roubles in comparative periods, included only Detsky Mir stores in Russia.

DETSKY MIR GROUP ANNOUNCES AUDITED FINANCIAL RESULTS FOR THE FULL YEAR 2015

1 March 2015. Russia, Moscow. Detsky Mir Group (“Detsky Mir” or “the Group”), Russia’s largest children’s goods retailer, announces its audited financial results under IFRS for the full year ended 31 December 2015.

KEY FINANCIAL RESULTS FOR FY 2015

• The Group’s revenue increased by 33.2% to RUB 60.5bn, vs RUB 45.5bn for FY 2014;
• Detsky Mir’s like-for-like sales improved 12.4%[1] year-on-year (with the number of checks growing by 3.7%, and the average check growing by 8.4%);
• Gross profit increased by 26.9% year-on-year to RUB 21.9bn, with a gross margin of 36.2%;
• Selling, general and administrative expenses[2] as a share of revenue decreased by 2 pp to 27.7%, compared with 29.8% a year earlier;
• Adjusted OIBDA[3] increased by 38.6% year-on-year to RUB 6.2bn, compared to RUB 4.5bn in 2014 (OIBDA margin reached 10.2%). Unadjusted OIBDA amounted to RUB 5.1bn.;
• Adjusted net income[4] increased by 29.9% year-on-year to RUB 2.2bn compared to 2014. Unadjusted Net income amounted to RUB 1.0bn;
• The Group paid RUB 3.0bn in dividends to its shareholders in 2015 (compared to RUB 2.5bn[5] in 2014).

OTHER 2015 HIGHLIGHTS

• The Group’s total number of stores increased to 425, with total retail space of 491 th. sq. m. In 2015 the Group opened 104 new stores opened, including 103 new Detsky Mir stores and one ELC store;
• The Group reported a net income in the first quarter of the year, as opposed to the seasonal loss traditionally seen in that period;
• In June 2015, an in-store pick-up service was implemented in all Detsky Mir retail locations;
• In August 2015, Detsky Mir launched its 72,000 sq. m. distribution centre in the Moscow region (Bekasovo).  This is the largest specialised logistics terminal for children’s goods in Russia;
• In December 2015, the sale of 23.1% of Detsky Mir to the Russia-China Investment Fund was completed for a total consideration of RUB 9.75bn.

Vladimir Chirakhov, CEO of Detsky Mir Group said:

“In terms of business growth and efficiency improvements, 2015 was a key year for the Group. Detskiy Mir adapted to the new economic realities while maintaining its rapid growth rates, enabling it to strengthen its leading position in the children’s goods market.

The Group continued to implement its expansion programme, opening 104 new stores, a Company record. The total number of stores increased to 425 in 2015. We continued to expand in Kazakhstan, with the opening of a new store in Astana.

The Group’s revenue increased by 33.2% year-on-year. The main driver of revenue came from existing stores, which is reflected in a 12.4% year-on-year rise in like-for-like sales, while the like-for-like increase in the number of purchases made (number of checks) was 3.7% year-on-year.

Selling, general and administrative expenses as a share of revenue dropped by 2 pp, which we achieved primarily as a result of a number of operational efficiency initiatives. Launching our own DC in Bekasovo (Moscow region) was one of the key efficiency projects. Our own warehouse will enable us to reduce logistics costs, increase centralisation and improve inventory management, which will lead to higher turnover.

Detsky Mir Group paid record dividends in 2015 of RUB 3.0 billion, demonstrating once again our commitment to shareholder value.

Detsky Mir Group is the largest employer in the children’s goods segment. In 2015, we created around 1,500 new jobs in dozens of regions around country and our average headcount increased by more than 20% year-on-year to 8,517 employees.

We are absolutely confident that 2016 will bring new opportunities for growth and efficiency improvements. We intend to continue implementing our retail chain development programme, and we intend to open at least 50 new stores in 2016.”

FINANCIAL RESULTS FOR 2011-2015

***

([1])  LFL and average check are hereinafter specified as year-on-year in Russian roubles in comparative periods

([2]) Selling, general and administrative expenses are calculated without Depreciation and Amortisation

([3]) Adjusted OIBDA is calculated as follows: Operating income before depreciation and amortization. FY 2014: excluding one-off effects related to disposal of Yakimanka building and LTI-bonus for CEO; FY 2015: excluding additional bonus payments under the LTI program (in relation to Sistema JSFC’s completion of the sale of 23.1% of Detsky Mir to the Russia-China Investment Fund)

([4]) Adjusted Net income  – FY 2014 net income, excluding one-off costs related to disposal of Yakimanka building and LTI-bonus for CEO; FY 2015 net income, excluding additional bonus payments under the LTI program (in relation to Sistema JSFC’s completion of the sale of 23.1% of Detsky Mir to the Russia-China Investment Fund) and other non-operating one-off costs

([5])The amount taking into account dividends paid to CJSC “DM-Finance”

([6]) Calculated per average space for the period

([7]) The indicator includes all online orders on the website – www.detmir.ru, including home delivery to customers and in store pick-up

([8]) Selling, general and administrative expenses are calculated without Depreciation and Amortisation

([9]) Adjusted OIBDA is calculated as follows: Operating income before depreciation and amortization. FY 2014: excluding one-off effects related to disposal of Yakimanka building and LTI-bonus for CEO; FY 2015: excluding additional bonus payments under the LTI program (in relation to Sistema JSFC’s completion of the sale of 23.1% of Detsky Mir to the Russia-China Investment Fund)

([10]) Adjusted Net income  – FY 2014 net income, excluding one-off effects related to disposal of Yakimanka building and LTI-bonus for CEO; FY 2015 net income, excluding additional bonus payments under the LTI program (in relation to Sistema JSFC’s completion of the sale of 23.1% of Detsky Mir to the Russia-China Investment Fund) and other non-operating one-off costs

([11]) The ratio is adjusted for the repayment under the loan agreement №381-FZ dated 03.07.2013 to CJSC “DM-Finance” (Sistema) at the end of January 2016. Cash was directed on repayment of the part of Detsky Mir’s revolving debt