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Eastern Europe
March 8, 2019 www.intellinews.com I Page 17
The management of the company mentioned
that it will recommend distributing the entire RUB3.3bn of 4Q18 RAS net income as a dividend, implying a 5% dividend yield for the 4Q18 payment alone, Sberbank CIB wrote on March 4. BCS Global Markets also estimated that this payout would make a 5% dividend yield and a record-high DPS (dividend per share of) RUB4.47.
"The company has one of the highest revenue growth rates in the sector and has been improving its operating efficiency. It announced healthy dividends and has superior ROIC. We reiterate
our positive view on the stock," Sberbank CIB commented on Detsky Mir results and dividend proposal.
Detsky Mir previously guided for at least 80 new store openings in 2019 and at least 300 new stores
in 2019-22. In February 2019 Detsky Mir had also opened its first store in Belarus, where it aims to open 35 stores there in the medium term and gain 20% of the market in the long term.
In December 7 the main owner of AFK Sistema Vladimir Yevtushenko confirmed negotiating the sale of Detsky Mir children’s goods retailer to Safmar Group of billionaire Mikhail Gutseriev.
Previous reports claimed that Sistema could sell a controlling stake in Detsky Mir to the Safmar
in a widely anticipated deal. The retailer recently added a second new format this year, which could increase the valuation of the asset.
The SPO of the retailer in 2017 and March 2018 was scrapped due to legal battle between Russian oil major Rosneft and Sistema.