Page 85 - RusRPTSept20

M.Video published 1H20 IFRS numbers and held a webcast presentation. The company has demonstrated solid y/y growth, despite COVID related restrictions/closures of stores: EBITDA up 20% y/y; NI up 44% y/y. Isolation work helped with additional demand for hardware, whereas the online platform supported, given the fall in traffic due to the stores’ closure. Key points mentioned on the call include the readiness to pay dividends (probably this year) and an SPO, which should increase the company’s liquidity and make it more investable. The core business’ transformation to the One-Retail Model, including the online marketplace has yet to bear fruits, but seems value adding.
About 20% of Russian catering establishments were forced to close by the beginning of the third stage of lifting all restrictions related to the pandemic, Sergey Mironov, Vice-President of the Federation of Restaurateurs and Hoteliers of Russia (FRHR), public ombudsman in the restaurant business at the office of the Ombudsman for the Protection of the Rights of Entrepreneurs in Moscow, told TASS.The industry expert noted that the forecast about a 50% decline on restaurant market by the end of the year is still relevant.
Russian restaurateurs have lost almost a third of their food suppliers,
President of the Federation of Restaurateurs and Hoteliers Igor Bukharov told TASS on August 24. According to Bukharov, new suppliers often face problems related to the refusal to grant a deferred payment. In addition, replacing old products with new ones implies updating the menu, which carries the risk of losing regular customers. He also noted that only a few Russian restaurants were able to reach a profitable level after the pandemic restrictions were lifted.
85 RUSSIA Country Report September 2020 www.intellinews.com