The Obuv Rossii Group of Companies, which manages the retail brands Westfalika, Pedestrian and Emilia Estra, has summed up the financial results of the first quarter of 2013. The revenue of Shoe of Russia increased by 40% compared to the same period in 2012 and amounted to 765 million rubles. The company's net profit grew 2,5 times to 104 million rubles. EBITDA doubled to 157 million rubles in the first quarter. EBITDA margin was 20,6%.
The main factors in the growth of profitability and profitability of the business were the expansion of the Westfalika retail network in the format for shopping centers, the development of financial services for customers, in particular, the issuance of cash loans, as well as an increase in the share of fashionable, elegant and more expensive shoes in stock. “Starting from the 2010 of the year, the EBITDA margin of our company has been constantly growing, and by the end of the 1st quarter of the 2013 of the year we have achieved a record for us - 20,6%,” commented Anton Titov, director of Obuv Rossii GC. - We will continue to rely on improving the performance of a dynamically expanding retail network. The EBITDA plan for this year is 1 billion rubles. ”
In the 1st quarter of 2013, the company opened 25 stores as part of the annual investment program. Mostly these are Westfalika stores in the format for shopping centers. More 35 stores will be open before the fall-winter season. In total, Obuv Rossii plans to launch more than 60 new outlets this year, investing more than 700 million rubles. The revenue plan for 2013 is 5 billion rubles.
In the spring-summer season, “Shoes of Russia” introduced a new brand to the market - Valeriya by Westfalika. These are bright designer shoes, developed with the participation of singer Valeria. At present, the line of shoes under this brand makes up 20% of Westfalika collections, in the future its share will be increased to 30%.
Since 2012, the company has been actively developing a new area of work - microfinance. Obuv Rossii issues cash loans to customers who purchase footwear in installments and repay it successfully. In the 1st quarter of 2013, the volume of issued cash loans amounted to 360 million rubles, the interest income of the company - 120 million rubles. In total, plans for this year to issue cash loans in the amount of 1,5 billion rubles and receive income from this service in the amount of 500 million rubles, which corresponds to 10% of the total revenue of the company.