"Tsentrobuv" will double debts

The Tsentrobuv trading network, which was planning to conduct an IPO in 2011 and postponing its access to the exchange, attracted two bank credit lines for 7 billion rubles. The company already has a significant debt burden, and if it takes full advantage of the opportunities provided by the bank, it will almost double its debt.

The meeting of shareholders of the company Centrobuv (developing two network formats under the brands Centrobuv and Centro) approved the attraction of a credit line of Sberbank for 5 billion rubles. and Gazprombank for 2 billion rubles.

This loan is used to restructure debt in the normal course of business, said RBC daily CEO of Centrobuv Andrei Nesterov. According to media reports, Tsentrobuv was planning to hold an IPO on the London Stock Exchange in 2011, but then moved its listing to the 2013 year. “At the moment, we are not talking about any specific events, IPOs or others,” Andrei Nesterov explained to RBC daily. “The company is currently optimizing all of its business processes in order to be ready to enter the international capital markets at any time.”

The company needs money to open new stores and working capital, says Alexei Krivoshapko, director of Prosperity Capital Management. “They have an ambitious development program, and in addition, the company purchases goods from China,” the expert explains. - Due to the large transport shoulder, the company has to wait three months for the arrival of goods. And this is not food retail, where suppliers pay for the retailer. ”

In March this year, Andrei Nesterov announced that in 2012, the company intends to open an 371 store in all regions of Russia. In 2011, 265 points were opened. According to him, investments in opening one outlet are 240 — 400 thousand dollars. At the end of March of this year, the network consisted of 903 stores of the Centro and Centrobuv format.

The company's debt burden is large: judging by the financial report of Centrobuvi for the first quarter of 2012, it amounts to 8,4 billion rubles, says Tatiana Elizarova, an analyst with IFC Metropol. Revenues for the 2011 year amounted to 27,8 billion rubles, she continues. Gross profit - about 10 billion rubles., Gross profit margin amounted to 37%. “This is very good, it is higher than that of food retailers, and much higher than that of M.Video,” said the analyst. About this writes rbcdaily.ru.

However, the company last year had very large selling and administrative expenses that exceeded 10 billion rubles. As a result, operating profit is very small, totaling 130 million rubles, so Centrobuv cannot invest in its own development, Ms Elizarova continues.

Due to new bank loans, the company's debt will increase significantly. “Development at the expense of borrowed funds is a risk, usually retailers finance their growth by half of domestic money,” says Tatyana Elizarova. This is a large profitable company that can afford to service such a debt, Mr. Krivoshapko is sure.