Detsky Mir Group increased revenue by 24,8% in the first half of 2017
Detsky Mir Group, the largest children's goods retailer in Russia, announces its operating results for 1H 2017, ended June 30, 2017.
The group's consolidated unaudited revenue increased by 24,8% to RUB 42,1 billion. compared to 33,7 billion rubles. in the first half of 2016. Like-for-like sales of the Detsky Mir chain of stores in Russia increased by 7,9%, including a comparable increase in the number of checks by 12%, while the comparable size of the average check decreased by 3,7%. The number of stores of the group of companies amounted to 528 with a total sales area of 604 thousand square meters. meters. In the first half of 2017, twelve new stores of the Detsky Mir chain were opened.
“In general, the consumer market in the first half of 2017 showed negative dynamics. Despite the fact that the company's revenue dynamics in the clothing and footwear categories was influenced by cold weather in central Russia, Detsky Mir Group managed to achieve a significant revenue growth rate of 24,8%. The volume of consolidated unaudited revenue amounted to 42,1 billion rubles. As before, one of the key drivers of revenue growth is the growth rate of like-for-like sales - 7,9%, due to an increase in the number of transactions (the number of checks) by 12,0%. The company will launch a number of marketing initiatives throughout the year to increase LFL sales growth. In the first half of 2017, the gross margin is expected to remain at the level of the same period last year. Adjusted EBITDA grew by over 35% according to unaudited financials.
In 2017, Detsky Mir Group of Companies will continue to implement a strategy aimed at consolidating the market: by the end of the year, we plan to open at least 70 new super and hypermarkets, including at least five stores in Kazakhstan.
In the reporting period, twelve new stores of the Detsky Mir chain were opened, four of them in the Moscow region and one store in Kazakhstan. For the first time, the chain stores opened their doors in cities such as Pervouralsk, Oktyabrsky and Aktau.
The rapid development of online trading remains a key trend in the consumer market, including in the segment of children's products, so Detsky Mir pays great attention to the development of its own online store. According to the results of the first half of 2017, the revenue of the online segment increased by 63,5% compared to the same period last year. The main driver was the increase in conversion, ”commented Vladimir Chirakhov, Director General of Detsky Mir PJSC.
Group of companies "Detsky Mir" combines the national retail network of Detsky Mir stores, the ELC chain of stores, Detsky Mir and ELC online stores.
According to data on 30 of June 2017 of the year, the Detsky Mir chain of stores is represented by 488 stores in Russia and Kazakhstan, located in 173 cities of Russia and 8 cities of Kazakhstan, the ELC chain is represented by 40 stores in Russia.
The total sales area of the group's stores is 604 thousand square meters. Shareholders of the company: PJSC AFK Sistema - 52,10%; Russian-Chinese Investment Fund (RCIF) - 14,03%; other shareholders owning less than 5% of shares - 33,87%.
Detsky Mir Group of Companies, Russia's largest retailer of children's goods trading, announces operating results for the 1 half year of the 2017 year ending 30 on June 2017 ...
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