Detsky Mir: operational results for 2017
Group of companies "Children's world" – Russia's largest retail operator of children's goods – announces operating results for the fourth quarter and full year ended December 31, 2017.
Key operational indicators for 2017
The volume of the Group's consolidated unaudited revenue for 2017 increased by 21.9%, or to 97.0billion rubles, compared to 79.5 billion rubles in 2016:
- including the volume of revenue of the online store increased by 67.0%, that is, to 4.6 billion rubles, compared to last year.
In accordance with the methodology used in the operational and financial statements of public grocery retailers in Russia, comparable sales (alternative like-for-like) of the chain of stores "Detsky Mir" in Russia increased by 7.2%:
- the comparable growth in the number of checks was 12.2%;
- the comparable size of the average check decreased by 4.4%.
104 new stores of the «Children's World» network were opened in 2017..
Key events of the fourth quarter of 2017
In December 2017, PJSC "Detsky Mir" distributed dividends for 9 months of 2017 in the amount of 2.2 billion rubles.
As part of the implementation of the company's long-term management motivation program in the 4th quarter of 2017, Detsky Mir Group of Companies repurchased 680,470 ordinary shares of Detsky Mir PJSC, amounting to 0.09% of its authorized capital, for 67 million rubles.
As part of the program to improve operational efficiency, PJSC "Detsky Mir" acquired the building of its own store on Vernadsky Avenue, which is one of the company's key trading platforms in Moscow, included in the top 5 stores of the chain in terms of revenue. The transaction price was 550 million rubles, including VAT. «Detsky Mir» plans to reconstruct the building and create on its basis the largest modern children's goods store in the Southwest of Moscow.
CEO of PJSC «Detsky mir» Vladimir Chirakhov spoke about the results of the year and plans for the future.
"The New Year's season and the fourth quarter as a whole have made a significant contribution to the successful completion of another year of record sales "Children's World". Our focus on a diversified and affordable range of products, as well as the company's long-term and wide presence in the market, allowed us to increase the volume of consolidated unaudited revenue by 22%, or up to 97.0 billion rubles, in 2017. At the same time, we have maintained a high level of EBITDA margin. According to the preliminary unaudited statements, the growth of adjusted EBITDA amounted to more than 26%.
In the last quarter, we opened 62 new stores of the «Detsky Mir» chain, which is a record figure in the entire history of the company. In total, 104 new stores of the chain opened their doors to customers in 2017. The company has been developing most actively in the Moscow region, where the retail network has grown by 23 new stores. The total number of supermarkets of the chain at the end of 2017 in the Moscow region was 166, in St. Petersburg - 34.
41 stores of the «Detsky Mir» chain were opened in new cities of Russia and Kazakhstan for the company. The first supermarkets appeared in Pervouralsk, Michurinsk, Gudermes, Kaspiysk, Maykop, Solikamsk, Tuapse, Neftekamsk, Salavat, Pushkino, and many other cities.
«Detsky Mir»continued expansion in the Republic of Kazakhstan, opening 10 new supermarkets and almost doubling the retail network in this country. The retail chain «Detsky Mir» in Kazakhstan is represented by 22 stores in 12 cities. Sales growth for comparable stores in tenge amounted to 25% for 2017.
Attracting new customers and the subsequent consolidation of the market remain the main strategic goals of the company. The growth of LFL sales by 7.2% (like-for-like) of the "Detsky Mir" network in Russia was achieved due to a double-digit increase in the number of buyers, which once again confirms the company's status as a key consolidator of the children's goods market.
«Detsky Mir» continues to focus on the development of e-commerce, constantly improving the user experience and increasing the level of service of the online store. The online segment remains the fastest growing sales channel of the Group of Companies, in the 4th quarter the revenue of this direction increased by 80%.
It is planned to continue the development of the network in all regions of the company's presence, opening at least 200 stores in the next three years, as well as to implement a multi-channel strategy, using the potential of an extensive network of stores and the opportunities for rapid growth of the online market.
Source: GC «Children's World»
