28 April 2015. Russia, Moscow. Detsky Mir Group (hereinafter "Detsky Mir" or "the Group"), the largest children's goods retailer in Russia and Kazakhstan, announces its unaudited financial results for the first quarter ended March 31, 2015.  

1st QUARTER 2015 FINANCIAL AND OPERATING HIGHLIGHTS

o   The Group's revenue grew by 32.9% to RUB 12.2 bln, compared to RUB 9.1 bln in Q1 2014;

o   Detsky Mir's like-for-like sales grew by 13.2% (with the number of checks growing by 4%, and the average check growing by 9%);

o   Gross profit was up 46.4% to RUB 4.4 bln as compared to RUB 3.0 bln in Q1 2014;

o   Selling, general, administrative, and other operating expenses as % of revenue was down 1.6 p.p. to 30.3%, from 32.0% in Q1 2014;

o   OIBDA increased to RUB 689 mln from RUB 66 mln in the corresponding period of 2014. OIBDA margin grew by 4.9 p.p. from 0.7% last year to 5.7%;

o   Net income reached RUB 24 mln compared to net loss of RUB 435 mln in Q1 2014;

o   In Q1 2015, the Company’s tax payments to the state budget and non-budget funds for 2014 period amounted to RUB 3.4 bln.

o   In Q1 2015, the Company opened 8 new Detsky Mir super- and hypermarkets, thus increasing the total number of the Group's stores to 330 and selling floorspace to 399,000 sq.m.

Vladimir Chirakhov, CEO of  Detsky Mir Group:

“In Q1 2015, Detsky Mir continued its robust development by opening 8 new stores. Revenue increased by 33% on the back of organic growth of the store chain, a more than 13% increase in like-for-like sales and maturity of 89 stores opened in 2013 and 2014. Especially noteworthy achievements include a significant growth in OIBDA year-on-year and reported net income already in the first quarter, which is usually a seasonally weak period.

Recent rouble weakening has significantly improved the competitiveness of Russian producers. As a result, we now observe a growing demand for Russian-made items, which enables us to expand product lines of Russian origin. On top of that, we have started using the Russian rouble as payment currency under contracts with foreign vendors. In the first quarter we signed our first import contract in roubles with Fashion Square, an Indian apparel producer.

In 2015, we believe, Detsky Mir will maintain high growth rates  opening at least 60 new super- and hypermarkets across Russia.”

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