PJSC M.video (M.Video-Eldorado Group, the Company, or the Group), Russia's largest consumer electronics retailer by revenue (MOEX: MVID), releases today its combined interim unaudited sales, like-for-like sales, and the networks expansion results for M.Video and Eldorado for the third quarter and the first nine months ended 30 September 2018.
Q3 2018 highlights (pro-forma):
9M 2018 highlights (pro-forma):
Combined net sales increased by 16.0% year-on-year to RUB 105.8 billion (with VAT) in the third quarter of 2018, and amounted to RUB 281.1 billion (with VAT) for the first nine months of 2018.
M.Video chain net sales demonstrated 19.6% year-on-year growth and reached RUB 70.4 billion (with VAT) in the third quarter of 2018. Eldorado net sales grew by 9.4% year-on-year to RUB 35.5 billion (with VAT) in the third quarter of 2018. The both chains delivered impressive double-digit Like-for-Like sales growth complemented by strong dynamics of M.Video’s online-based sales.
Like-for-Like sales of the Group increased by 11.8% in the third quarter of 2018, driven by higher number of units sold and trading up, resulting in the average ticket growth. M.Video Like-for-Like sales improved by 12.3%, while Eldorado’s Like-for-Like sales grew by 11.0%.
M.Video’s online-based sales (pick-up and home delivery) increased by 38.1% year-on-year in the third quarter of 2018, driven by growing number of transactions and average ticket. Eldorado’s OBS grew by 5.7% year-on-year in the third quarter of 2018, largely due to digital categories sales growth in the product mix.
“M.Video and Eldorado, after their merger in April 2018, demonstrated double-digit sales growth for the second quarter in a row thanks to the efficiency of our long-term business-strategy. Strong like-for-like sales dynamics delivered by the chains results from their effective assortment, promos and personnel management making it possible for both our brands to compete successfully in the market”, - commented M.Video-Eldorado Group President, Alexander Tynkovan.
“Generally, in the second half of 2018, we have been observing some slowdown in the consumer electronics market growth compared to what we saw in the beginning of the year, due to the macro environment, as well as relatively high comparison base of autumn and winter of 2017”, - Mr. Tynkovan emphasized.
M.Video-Eldorado Group Chief Executive Officer, Enrique Fernandez, added:“M.Video and Eldorado internet sales stood at almost one fifth of the total net sales in the nine months of 2018, compared to 15.7% for the same period a year ago. Cross-platform solutions, such as convenient in-store real-time dealing and online consumer loans, allow us to focus more on top-line growth and customers’ satisfaction, while the final point of purchase is becoming not so important anymore.”
“The digital market remains strategic for both our brands. Eldorado is expected to open up to 100 special digital zones in their stores, while M.Video plans to open 5 more m_mobile standalone pilot stores by the end of 2018. Besides, the Group expects to open up to 30 more standard stores by the end of 2018, excluding rebranded MediaMarkt locations, to enter the high season fully-armed”, —noted Mr.Fernandez.