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2018 October 18, 12:10

M.Video-Eldorado Group Demonstrates Double-digit Sales and LFL Growth

M.Video-Eldorado Group Demonstrates Double-digit Sales and LFL Growth

18 October 2018, Moscow, Russia. PJSC M.video (M.Video-Eldorado Group, the Company, or the Group), Russia's largest consumer electronics retailer by revenue (MOEX: MVID), releases today its combined interim unaudited sales, like-for-like sales, and the networks expansion results for M.Video and Eldorado for the third quarter and the first nine months ended 30 September 2018.

Q3 2018 highlights (pro-forma[1]):

·        M.Video-Eldorado Group net sales grew by 16.0% year-on-year to RUB 105.8 billion (with VAT)

·        Group’s Like-for-Like (LFL) sales increased by 11.8%

·        Combined online-based sales (OBS) increased by 25.8% year-on-year to RUB 18.8 billion (with VAT)

9M 2018 highlights (pro-forma):

·        The Group’s net sales grew by 16.0% year-on-year to RUB 281.1 billion (with VAT)

·        Combined Like-for-Like Sales increased by 13.0%

·        Online-based sales for the Group improved by 34.2% year-on-year to RUB 51.1 billion (with VAT)

·        OBS share in the Group’s total net sales amounted to 18.2%. Pick-up rate stood at 74% of the Group’s online-based sales

Combined net sales increased by 16.0% year-on-year to RUB 105.8 billion (with VAT) in the third quarter of 2018, and amounted to RUB 281.1 billion (with VAT) for the first nine months of 2018.

M.Video chain net sales demonstrated 19.6% year-on-year growth and reached RUB 70.4 billion (with VAT) in the third quarter of 2018. Eldorado net sales grew by 9.4% year-on-year to RUB 35.5 billion (with VAT) in the third quarter of 2018. The both chains delivered impressive double-digit Like-for-Like sales growth complemented by strong dynamics of M.Video’s online-based sales.  

Like-for-Like sales of the Group increased by 11.8% in the third quarter of 2018, driven by higher number of units sold and trading up, resulting in the average ticket growth. M.Video Like-for-Like sales improved by 12.3%, while Eldorado’s Like-for-Like sales grew by 11.0%.

M.Video’s online-based sales (pick-up and home delivery) increased by 38.1% year-on-year in the third quarter of 2018, driven by growing number of transactions and average ticket. Eldorado’s OBS grew by 5.7% year-on-year in the third quarter of 2018, largely due to digital categories sales growth in the product mix.

“M.Video and Eldorado, after their merger in April 2018, demonstrated double-digit sales growth for the second quarter in a row thanks to the efficiency of our long-term business-strategy. Strong like-for-like sales dynamics delivered by the chains results from their effective assortment, promos and personnel management making it possible for both our brands to compete successfully in the market”, - commented M.Video-Eldorado Group President, Alexander Tynkovan.

“Generally, in the second half of 2018, we have been observing some slowdown in the consumer electronics market growth compared to what we saw in the beginning of the year, due to the macro environment, as well as  relatively high comparison base of autumn and winter of 2017”, - Mr. Tynkovan emphasized.

M.Video-Eldorado Group Chief Executive Officer, Enrique Fernandez, added:“M.Video and Eldorado internet sales stood at almost one fifth of the total net sales in the nine months of 2018, compared to 15.7% for the same period a year ago. Cross-platform solutions, such as convenient in-store real-time dealing and online consumer loans, allow us to focus more on top-line growth and customers’ satisfaction, while the final point of purchase is becoming not so important anymore.”

“The digital market remains strategic for both our brands. Eldorado is expected to open up to 100 special digital zones in their stores, while M.Video plans to open 5 more m_mobile standalone pilot stores by the end of 2018. Besides, the Group expects to open up to 30 more standard stores by the end of 2018, excluding rebranded MediaMarkt locations, to enter the high season fully-armed”, —noted Mr.Fernandez

Net Sales**, mn RUB (with VAT)

3Q 2018

3Q 2017

YoY, %

9M 2018

9M 2017

YoY, %

M.Video

70,377  

58,842  

+19.6%

186,960  

156,773  

+19.3%

Eldorado

35,459  

32,417  

+9.4%

94,177  

85,586  

+10.0%

M.Video-Eldorado Group

105,836  

91,259  

+16.0%

281,137  

242,360  

+16.0%

 

Online Sales (pick-up + home delivery), mn RUB (with VAT)

3Q 2018

3Q 2017

YoY, %

9M 2018

9M 2017

YoY, %

M.Video

 12,825  

 9,289  

+38.1%

 34,963  

 22,100  

+58.2%

Eldorado

 5,977  

 5,654  

+5.7%

 16,148  

 15,991  

+1.0%

M.Video-Eldorado Group

 18,803  

 14,943  

+25.8%

 51,111  

 38,091  

+34.2%

 

 

 

 

 

 

 

Like-for-Like Sales***, %

3Q 2018 / 3Q 2017, %

9M 2018 / 9M 2017, %

M.Video

+12.3%

+13.5%

Eldorado

+11.0%

+12.1%

M.Video-Eldorado Group

+11.8%

+13.0%


In Q3 2018, M.Video opened 8 standard stores and 1 m_mobile, while Eldorado opened 5 stores. The Group’s total number of stores reached 854 as of September 30, 2018.  

 

Q3 and 9M 2018 M.Video-Eldorado Group Sales and Expansion Summary (Pro-forma*):

 

*Pro-forma combined operational results for the Group include Eldorado numbers starting not from the acquisition date in 2018, but from the beginning of the earliest comparable period, i.e. from the beginning of 2017.

** Net Sales are Total sales for the reporting period excluding sales of discount coupon cards. Sales numbers for the respective periods of 2017 were restated to Net Sales for comparability purposes.

*** LFL data is based on a comparison of 756 stores operating as of January 1, 2017 and not closed for more than two weeks, and/or not expanded or downsized by >20% of their total space.

 

Network Expansion

31.12.2017

30.09.2018

New for 9m 2018*

Stores, #

 

M.Video

424

438

+14

Eldorado

415

416

+1

M.Video-Eldorado Group

839

854

+15

Selling Space, ths sqm

M.Video

693

702

+9

+1.3%

Eldorado

592

590

-2

 -0.4%

M.Video-Eldorado Group

1,286

1,292

+6

+0.5%

Total Space, ths sqm

M.Video

937

950

+13

+1.4%

  Eldorado

762

756

-6

 -0.8%

M.Video-Eldorado Group

1,699

1,706

+7

+0.4%

 

*In 9M 2018, 13 M.Video and 3 M_Mobile stores were opened, and 2 M.Video stores were closed for their relocation.

In 9M 2018, 7 Eldorado stores were closed (including 6 stores closed in compliance with FAS decision) and 8 stores were opened.

 

About M.Video-Eldorado Group

 

M.Video-Eldorado Group (PJSC “M.video”) consolidates consumer electronic retail brands M.Video and Eldorado, and Goods marketplace. The Group’s combined annual sales are over 360 billion rubles with VAT. M.Video-Eldorado Group is the first and only public consumer electronic retailer in Russia. The Company’s shares are traded on the Moscow Stock Exchange (ticker: MVID).

 

As of 30 September 2018, the Group operated 435 under M.Video, 416 stores under Eldorado, and 3 stores under M_Mobile brand in more than 200 cities of the Russian Federation. The Group’s selling space was 1,292 ths sqm, and total space was 1,706 ths sqm as of 30 September 2018. 

 

Contacts for media:

Valeriya Andreeva, Head of PR

e-mail: valeriya.andreeva@mvideo.ru

Tel: +7 (495) 644 28 48, ext. 7386

Contacts for investors:

Natalya Belyavskaya, IR Director,

natalya.belyavskaya@mvideo.ru

tel: +7 (495) 644 28 48, ext. 1425

 



[1] Pro-forma combined operational results for the Group include Eldorado numbers starting not from its acquisition date in April 2018, but from the beginning of the earliest comparable period, i.e. from the beginning of 2017.

 

 
Information is valid for 02:52 21.11.2018