Page 176 - RusRPTMay21

declining from 9.7% in 2019 to 9.5% in 2020
· Net loss totaled Rb544mn in 2H20 vs positive Rb155mn in 2H19
due to net FX loss related to intragroup USD-denominated loans
and to lease contracts nominated in foreign currencies
· Net debt to EBITDA ratio decreased to 3.6x as of December 31,
2020
M.Video-Eldorado posted 1Q21 Trading update. Solid 14% growth in GMV
was mainly driven by online sales (+63% y/y), which reached 66.8% share of GMV.
· GMV increased 14% y/y to RUB138.3bn (incl. VAT) vs +18.8% in 4Q20 and +19.8% in 1Q20 on the back of a more than 24% increase in sales in January-February. The 2.6% decline in March was due to the high base effect from March 2020, when sales of laptops, peripherals and other mobile devices increased sharply as people transitioned to remote work and distance learning, while at the same time, sales of home appliances and consumer electronics were boosted as Russians started satisfying deferred demand for major purchases amid FX fluctuations. Compared to March 2019, GMV rose by over 31%
· Total online sales rose by 63% y/y to RUB92.4bn (incl. VAT) – 66.8% of total sales – the key driver for GMV growth
· The average monthly number of active users of the customer mobile apps increased by more than 5x y/y to 3.2mn
· The average monthly audience of the websites declined by 4.1% y/y to 71mn visitors, as many customers migrated to the mobile platform
· The number of stores reached 1,098 (+6% y/y) and selling space rose 2% y/y
· M.Video-Eldorado closed a deal to sell a controlling stake in goods.ru (Marketplace LLC) to Sber. Under the agreement, Sber invested some RUB30bn in the marketplace; Sber’s share in goods.ru totaled 85%, with M.Video-Eldorado Group retaining 10% and Alexander Tynkovan holding the remaining 5%.
M.Video-Eldorado Group, Russia’s leading consumer electronics retailer, is building up its local presence with Eldorado 250, a new format of 250–500 sq m stores. Eldorado has opened 50 new outlets since the launch of its new store format – with 43 of these marking the Group’s entry into a new locality – including 22 new stores in Q1 2021. Requiring three times less investment than full-size stores, the new format enables the Group to cover more than 200 new towns and cities within the next three years and strengthen its position in places where the Group is already present. All Eldorado stores, including those in the new format, are connected to the Group’s online platform. The offline retail locations operate as pick-up points for online orders, with each store’s product range tailored to local demand using data analytics,
176 RUSSIA Country Report May 2021 www.intellinews.com