According to the presented data, the volume of consolidated unaudited revenue of the Group in the 1st quarter of 2018 increased by 14% (to RUB 24.0 billion).Comparable sales of the network in Russia increased by 5.1%, while the amount of the average check decreased by 3.4%. The Group's gross profit increased by 10% (to RUB 7.1 billion).The share of commercial, general and administrative expenses decreased due to increased operational efficiency and cost reduction.

Comments Vladimir Chirakhov, CEO of Detsky Mir PJSC: In the first quarter of 2018, Detsky Mir Group strengthened its position as a leader in the children's goods market in Russia. The priority direction of management remains the reduction of operating costs, which allows maintaining high operational efficiency of the business and increasing its marginality. According to the results of the first quarter, the share of rental expenses from revenue decreased by 1.3 percentage points year-on-year. The Company's management continues to implement the best practices in the field of IT and personnel management, optimizing the staffing of the retail network. The Company continues to focus on optimizing the debt burden, ensuring continuity of financing of operating activities on the best market conditions with a high level of diversification of the loan portfolio. The weighted average cost of debt capital decreased to 9.5% at the end of the reporting period, which contributed to a threefold increase in adjusted net profit relative to the first quarter of last year.