Company “M.video” announces its year 2008 preliminary net retail sales

Company “M.video” (RTS, MICEX: MVID), one of the Russia s largest consumer electronics retailers, announced today its unaudited net retail sales, like-for-like (LfL) performance and expansion results for the full year of 2008 and the 4th quarter 2008.

In 2008 M.video demonstrated 41% year-on-year growth of its net retail sales in Russian roubles terms (43% growth in USD terms) and 11% year-on-year growth of LfL sales in RUR terms (14% in USD terms) as compared to FY2007.

In Q4 2008 M.video increased its net retail sales by 25% in RUR terms (13% increase in USD terms) and demonstrated flat year-on-year LfL performance in RUR terms (-9% in USD terms due to the Russian rouble depreciation against the US dollar) as compared to Q4 2007.

M.video opened 37 new hypermarkets in 2008 (17 in the 4th quarter 2008) as compared to the same number of new stores opened the year before. The total number of the Company s hypermarkets reached 157 stores located in 64 cities of Russia versus 122 stores in 48 Russian cities opened by the end of 2007. The total space of M.video stores amounted to 416,500 sq.m as of December 31, 2008 demonstrating a 29% increase as compared to FY2007. The Company entered 16 new cities throughout 2008.

The group s net debt position1 as of December 31, 2008 amounted to RUR 1.0 billion (gross debt of RUR 7.4 billion and cash and cash equivalents of RUR 6.4 billion). 

Summary of the FY2008 and the 4th quarter 2008 performance:

Net Retail Sales Performance*
	FY 2008	FY 2007	% change y-o-y		Q4 2008		Q4 2007		% change y-o-y
RUR million	68,253	48,410	41%		21,654		17,373		25%
USD million**	2,733	1,905	43%		794		705		13%
LfL Sales Performance***
	FY 2008 LfL Dynamics, %				Q4 2008 LfL Dynamics, %
Russian rubles	11%				0.1%
US dollars	14%				-9%
Expansion
	As of 31 December 2008			As of 31 December 2007		New FY 2008		% change
Stores	157****			122		37		29%
Total space, sq. m	416,500			323,400		93,100		29%

 

* - net retail sales figures are exclusive of VAT.

** - M.video 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. Average exchange rate for the year is weighted for relative quarter sales level.

*** - 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.

**** - net of closing.

Note:

OJSC “Company “M.video” is one of the largest Russian consumer electronic retail chains. The Company started its operations in 1993 and now it runs 157 brand name stores in 64 Russian cities as well as 2 on-line internet stores (as of the end of 2008). The total space of “M.video” hypermarkets accounts to 416 500 sq. m. In 2007 “M.video” was awarded as “Best Retail Company” with the prestigious Russian “Number 1 Brand/People s Choice Brand” national competition.

In November 2007 OJSC “Company “M.video” became the first publicly traded company in the domestic consumer electronic retail sector. The Company s shares are traded on Russian RTS and MICEX (ticker: MVID).

 

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