Detsky Mir Group (“Detsky Mir”, “the Group” or “the Company”) (MOEX: DSKY), Russia\u2019s largest specialized children’s goods retailer, announces its unaudited financial results in accordance with International Financial Reporting Standards (IFRS) for the first quarter ended 31 March 2017.<\/p>\n
KEY FINANCIAL RESULTS FOR 1Q 2017<\/u><\/strong><\/p>\n <\/a>Vladimir Chirakhov, PJSC Detsky Mir <\/strong>Chief Executive Officer, said:<\/strong><\/p>\n \u201c<\/em>Despite the continued contraction of retail turnover, Detsky Mir Group successfully implements its strategy of attracting new customers and consolidating the market. <\/em><\/p>\n The variety of goods and affordable prices help maintain good growth rates. We reached a double-digit growth rate in the number of transactions (the number of checks) in like-for-like stores of Detsky Mir chain in Russia, which was amounted to 13.3%. The consolidated unaudited revenue grew by 28.3% to RUB 21.1bn. The implementation of the multichannel sales strategy is a priority and has a significant impact on the chain’s business development. In the first quarter of 2017, the unaudited revenue of the online store almost doubled year-on-year: from RUB 491m to RUB 900m. One of the main components of the multichannel sales strategy is omni-pricing”, which was implemented in 2016 through the reduction of prices in our brick-and-mortar stores to the level of the online store in order to offer the same prices to our customers. <\/em><\/p>\n In the first quarter of 2017, Detsky Mir Group successfully achieved all targets for reaching the double-digit adjusted EBITDA margin in the full-year 2017. Adjusted EBITDA grew by 37.6% year-on-year. <\/em><\/p>\n Improvements in operating efficiency continue to play the key role in increasing business profitability. The management’s efforts to further improve labour productivity and optimise rental payments have reduced SG&A expenses as a percentage of revenue by 300 bps. Adjusted income increased by 34.4% year-on-year. <\/em><\/p>\n Detsky Mir Group will continue rapid development in 2017 and will open at least 70 new stores.\u201d<\/em><\/p>\n KEY FINANCIAL & OPERATING HIGHLIGHTS – 1Q2017 VS 1Q2016<\/u><\/strong> (UNAUDITED)<\/u><\/strong><\/p>\n Key Operating Highlights <\/strong><\/p>\n\n