Obuv Rossii Group of Companies has summed up its financial results for 9 months of 2013. The Group's revenue for the reporting period amounted to 2,98 billion rubles, which is 65% more than in the same period last year. Net profit increased by 59% to RUB 300 million. EBITDA amounted to 542 million rubles, which means an increase in relation to 9 months of 2012 by 78%.
“We are pleased to once again report on the continuous growth of Obuv Rossii's financial performance, which reflects the correct choice of the company's development strategy and our ability to effectively respond to industry trends. Now in the footwear market there is a favorable situation for large retailers with proven technologies for developing regions, recognizable brands and a wide audience of loyal customers. - comments Anton Titov, director of Obuv Rossii Group of Companies. - The footwear market is poorly saturated and poorly consolidated, which opens up great opportunities for dynamic growth of the retail network and gives us confidence in the further favorable development of the company.
For 9 months of 2013 Obuv Rossii opened 79 stores and entered 26 new cities, exceeding the network development plan for this year by 30%. The new regions for the retailer are the Volgograd, Amur, Tula regions, the Komi Republic, Buryatia, Karelia, Bashkortostan, Mordovia, the Trans-Baikal Territory, the Khanty-Mansi Autonomous Okrug, and the Jewish Autonomous Region. In September 2013, the number of Obuv Rossii stores exceeded 250.
Obuv Rossii achieved significant growth in its profitability indicators due to several key factors. A competent assortment policy played an important role: designer shoes began to take a significant share in sales. Large-scale promotion campaigns were carried out (a television advertising campaign for Westfalica was launched on the country's leading TV channels in August). The company started developing its related products business, which accounted for 12% of retail revenue. Another reason was the growing popularity of financial services for buyers, such as installments and microloans.
An important direction in the retailer's work is the implementation of a long-term business development financing program. Obuv Rossii has taken serious steps to improve business transparency. In September, the Group consolidated its assets in OR with an authorized capital of RUB 7 billion, the Board of Directors of which included two independent directors, switched to international financial reporting standards and announced its intention to conduct an additional share issue in the amount of RUB 1,8 billion.