Detsky Mir Group is expanding retail and entering new markets
In the third quarter of 2018, the revenue of Detsky Mir Group increased by 15,9% to RUB 28,4 billion. compared to 24,6 billion rubles. in the third quarter of 2017. The growth was due to the increase in the number of Detsky Mir chain stores and the increase in online sales.
The volume of revenue of the online store in the reporting period compared with the same period last year doubled to 2,1 billion rubles. The retail chain Detsky Mir increased by 12 new stores. The total number of Detsky Mir Group stores as of September 30, 2018 was 666.
Like-for-like sales of the Detsky Mir chain of stores in Russia increased by 3,7%: a comparable increase in the number of checks amounted to 5,2%; the comparable average check decreased by 1,5%.
The Group's consolidated unaudited revenue for 9M 2018 increased by 14,9% to RUB 76,6 billion. compared to 66,6 billion rubles. for 9 months of 2017.
An important event for the Detsky Mir Group in the third quarter of 2018 was the signing of an agreement with PNK Group on the construction of a new distribution center in PNK Park Bekasovo, located in the Naro-Fominsk urban district of the Moscow region. The total expected investment in the project will amount to RUB 2,5 billion. The total area of the logistics complex will be 62 thousand square meters. m. The construction of the distribution center is planned to be completed at the end of 2018.
Also in the reporting period, the group opened a subsidiary in the Republic of Belarus - Detmir BEL LLC in order to develop the Detsky Mir retail in this country. The share of PJSC Detsky Mir in the subsidiary is 100%. The strategic and financial management of the retail chain in Belarus will be carried out by the top management of the head office of Detsky Mir Group in Moscow.
In addition, in September 2018, the group decided to enter the pet products market. “Searching for new opportunities to increase business value and entering new markets is one of the key elements of the company's strategy. In September this year, the company's management made a strategic decision to enter the pet products market. This is a promising market in terms of its volume, expected growth and a high level of fragmentation, as well as the possibility of using the experience gained in the children's goods market by management, ”commented Vladimir Chirakhov, CEO of PJSC Detsky Mir, on the decision.
The Detsky Mir Group of Companies comprises the national retail chain of Detsky Mir stores, the ELC and ABC retail chains, and the Detsky Mir and ELC online stores. As of September 30, 2018, the Detsky Mir chain of stores consisted of 610 stores in Russia and Kazakhstan, located in 215 cities in Russia and 13 cities in Kazakhstan, while the ELC and ABC chains consisted of 56 stores in Russia. The total selling space of the Group's stores is 714 square meters. According to audited IFRS data, the holding company's revenue for 2017 amounted to RUB 97,0 billion, adjusted EBITDA amounted to RUB 10,7 billion, and adjusted profit for the period amounted to RUB 5,5 billion.
In the third quarter of 2018, the revenue of Detsky Mir Group increased by 15,9% to RUB 28,4 billion. compared to 24,6 billion rubles. in the third quarter of 2017. The growth is due to the increasing number of ...
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