2008 October 28, 13:59

OJSC “Company “” reports 50% growth of its 9 months 2008 net retails sales.

OJSC “Company “” (RTS, MICEX: MVID), one of the Russia's largest consumer electronics retailers, announced today its consolidated unaudited net retail sales and like-for-like (LfL) results for the first 9 months of 2008 and the 3rd quarter 2008.

In the first 9 months of 2008 demonstrated 50% year-on-year growth of its net retail sales in Russian roubles terms (62% growth in USD terms) and 17% year-on-year growth of like-for-like sales in RUR terms (25% in USD terms) as compared to the same period of 2007.

In Q3 2008 increased its net retail sales by 37% in RUR terms (45% increase in USD terms) and demonstrated 19% year-on-year growth of like-for-like sales in RUR terms (25% growth in USD terms) as compared to Q3 2007.

The group's net debt position as of September 30, 2008 amounted to RUR 5.0 billion (gross debt of RUR 10.4 billion and cash and cash equivalents of RUR 5.4 billion).

Alexander Tynkovan, President and CEO of commented on the results: "We are pleased to provide our shareholders and investors with such excellent results and remarkable growth achieved through the 9 months of 2008. We would like also to share our confidence in the group's strong performance in the peak Christmas sales season and till the end of the year due to the business solvency, sufficient financial management and outstanding efforts of all our team".

Summary of the 9 months and 3rd quarter 2008 performance:

Net Retail Sales Performance*
  9m 2008 9m 2007 % change y-o-y Q3 2008 Q3 2007 % change y-o-y
RUR million 46,599 31,037 50% 17,363 12,687 37%
USD million** 1,939 1,200 62% 717 496 45%
LfL Sales Performance***
  9m 2008 LfL Growth, % Q3 2008 LfL Growth, %
Russian rubles 17% 19%
US dollars 25% 25%
  As of 30 September 2008 As of 31 December 2007 New stores 9m 2008 % change
Stores 140**** 122 20 15%
Total space, sq. m 374,500 323,400 51,100 16%

* - net retail sales figures are exclusive of VAT.
** - group has a functional currency of Russian rubles. The US dollars are presented for convenience purpose only. The USD amounts are prepared using the weighted average exchange rates over the periods presented.
*** - LfL data is based upon a comparison of stores open at January 1, 2007 and not closed for more than two weeks or permanently, or expanded or downsized by >20% of total space.
**** - two stores were closed through the period presented.
Information is valid for 12:57 06.07.2020