Detsky Mir Group increased its total sales by 11,6% in the second quarter of 2022.
Total sales of Detsky Mir Group in the 2nd quarter of 2022 increased by 11,6% year-on-year to RUB 46,7 billion. At the same time, goods in the category “Clothes and Footwear” were in the greatest demand, the share of this category in the sales structure amounted to 36,3% (+5,6 percentage points year-on-year), according to a press release from the group of companies.
The increase in the group's total sales in the reporting quarter occurred against the backdrop of organic growth in retail space in the countries where Detsky Mir Group operates during 2021, as well as a gradual recovery in consumer demand. Group sales in Kazakhstan and Belarus continue to grow at a significant pace. In the second quarter, total sales in Kazakhstan increased by 16,0% year-on-year to RUB 1,8 billion. Sales in Belarus grew by 45,2% to 636 million rubles.
In the first half of 2022, the group's total sales increased by 9,7% to RUB 89,3 billion. (VAT included). At the same time, the total volume of online sales grew by 13,4%, while the share of online sales in Russia amounted to 29,9% (+1,0 p.p. yoy). In the same period, the growth rate of sales in the delivery channels "self-delivery" and "courier delivery" increased significantly - by 26,6%.
The online sales volume of the group in Kazakhstan increased significantly in the second quarter of 2022 - by 56,6%.
The group's net revenue in the second quarter of 2022 increased by 10,5% to RUB 41,3 billion. According to the results of the first half of 2022, the group's net revenue increased by 8,3% to RUB 79,2 billion.
In Kazakhstan, revenue growth in the second quarter of 2022 was 17,9%, in Belarus, net revenue increased by 46,1% year-on-year. Sales of own brands and direct imports in Russia amounted to 56,7% of total sales (+8,8 p.p.). Marketplace sales in Russia increased by 140,5% to RUB 1,4 billion. (VAT included), the share of the marketplace in total online sales in Russia was 11,0%.
According to the results of the second quarter of 2022, the total number of stores of the group amounted to 1 stores (+123 stores yoy) in 194 cities and towns of Russia, Kazakhstan and Belarus.
“According to the results of the first half of 2022, despite the continuing high level of uncertainty in the retail sector and the Russian economy as a whole, the group showed strong operating results: the group’s total sales increased by 9,7% to RUB 89,3 billion, including while total sales in the second quarter of 2022 increased by 11,6% to RUB 46,7 billion. We also expect an increase in operating profit (adj. EBITDA) for the period, - comments Maria Davydova, General Director of PJSC Detsky Mir. -
Responding to the challenges of the first half of 2022, we managed to rebuild supply chains, while we continue to work on optimizing these processes. The company also continues to work actively to select and add products from new suppliers to the shelf, which reduces the potential risks of certain brands leaving the Russian market. At the same time, the company is implementing strategic initiatives to increase the share of sales of its own brands and direct imports in Russia – in the second quarter of 2022, this indicator reached 56,7% (+8,8 p.p. year-on-year).”
Group management notes an overall moderate recovery in consumer confidence in the second quarter of 2022, while taking into account the continued high uncertainty on key macro parameters in the second half of 2022 when making both operational and investment decisions.
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