12 May 2016. Moscow, Russia. Detsky Mir Group ("Detsky Mir" or "the Group"), Russia's largest children's goods retailer, announces its unaudited financial results under International Financial Reporting Standards (IFRS) for the first quarter of 2016, which ended on 31 March 2016.

KEY FINANCIAL RESULTS FOR 1st QUARTER 2016

• Group unaudited revenue increased by 35.1% to RUB 16.4bn, vs. RUB 12.2bn in Q1 2015;
• Like-for-like sales at Detsky Mir stores in Russia grew by 13.1%, with the number of checks growing by 0.9% and the average check increasing by 12.1%;
• Gross profit increased by 25.2% year-on-year to RUB 5.5bn vs. RUB 4.4bn in Q1 2015; the gross margin reached 33.4%;
• Selling, general and administrative expenses as a share of revenue decreased by almost 2 p.p. to 28.5% compared with 30.3% in Q1 2015, driven by increased operational efficiency;
• OIBDA increased by 16.9% year-on-year to RUB 0.8bn vs RUB 0.7bn in Q1 2015; the OIBDA margin reached 4.9%;
• Net income more than quadrupled year-on-year to RUB 0.1bn;
• The net debt/adjusted OIBDA LTM ratio as of March 2016 improved to 2.0x vs 2.3x in Q1 2015.

Vladimir Chirakhov, CEO of Detsky Mir Group, said:

“Detsky Mir Group continued to actively expand in the first quarter: unaudited consolidated revenue increased by 35.1% year-on-year to RUB 16.4bn. We maintained the double-digit pace of sales growth at comparable stores, with like-for-like sales growth of 13.1%.

Selling, general and administrative expenses as a share of revenue decreased by nearly 2 p.p. as we implemented projects to improve operational efficiency and automated business processes, thereby optimizing our back-office and sales headcount. OIBDA increased by 16.9% to RUB 806mln in Q1 2016.

Kazakhstanremains one of our priority areas of focus. In the first quarter, like-for-like sales growth (KZT) at Detsky Mir stores in Kazakhstan was 50.3%. Although our Kazakh stores account for a relatively small proportion of total sales, we see great business opportunities in this area, and plan to open at least five stores in 2016.”

DOWNLOAD THE FULL VERSION OF THE PRESS RELEASE

***

For additional information contact: