Page 92 - RusRPTFeb20

continued strong growth of 48% like-for-like, but core retail sales worsened by 2.6% y/y. The like-for-like (LFL) sales in 4Q19 imply a negative performance in the core shoes business, BCS Global Markets commented on January 30, seeing the results as mixed, but still maintaining Buy recommendation on the name with target price of RUB150 per share. Obuv Rossii continued to grow online sales by 5.3% y/y to RUB417mn in 4Q19, while the total number of stores reached 908, including 172 franchise stores and the trading space expanded by 15% y/y to 61,900 square meters.
9.2.7​ TMT corporate news
Russia's largest online retailer ​Wildberries​ reported a turnover increase in 2019 of 88% to RUB223.5bn ($3.6bn), ​handling over 164mn orders last year, the company said on January 15. As reported by ​bne IntelliNews,​ ​Wildberries kicked off 2020 with the launch of its European operations in Poland​, offering almost half of the brand assortment of its Russian platform on wildberries.eu. Forbes Russia in 2019 estimated Wilderries’ value at $1.2bn, making it the fourth most valuable internet company in Russia after Yandex, Mail.ru Group and Avito. Wildberries also recently made it into the top three most valuable internet unicorns. The total product line of the retailer increased from 1.8mn items to 3.6mn items in 2019, with apparel, footwear and accessories remaining the main category with 67% of total turnover. Food products, hardware tools, electronics and products for pets were the fastest-growing categories in 2019. The share of purchases from mobile devices grew to 75% from 61% seen in 2018. 90% of the online shoppers at Wildberries chose home delivery over picking up goods in the drop-off/pick-up points.
Russian e-commerce major ​Ozon​ will give up most of its in-house delivery services​, ​Vedomosti d​ aily reported on January 20 citing the representatives of the company. The daily estimated that Ozon employs about 1,000 delivery runners, or about 5% of total delivery staff of Russian internet shops. This makes a shift from Ozon's previous policy of developing own delivery services. In October 2019 the company even ​launched a new express delivery “Supermarket” service​ that will deliver food and grocery in under 40-60 minutes in some Moscow districts. At the same time Ozon also boosted its automated pick-up terminal chain Ozon Box and claimed it to be the ​largest in the country at the moment​. However, ​the latest financial report of Wildberries​, Russia's largest e-commerce player, showed that 90% of its shoppers chose home delivery over picking up goods in the drop-off/pick-up points.
9.2.10 ​Utilities corporate news
Net IFRS profit of Russian hydropower major ​RusHydro​ declined by
9% year-on-year in 3Q19 ​beating the consensus expectations by 31%, due to lower impairment losses. The company's revenues came in flat y/y in the reporting quarter, while the Ebitda was down 7% y/y, as expected, on the back of recovery in hydro production, that was offset by falling electricity prices in two pricing zones. BCS Global Markets saw the bottom line beat as positive for the name, maintaining a Buy recommendation for RusHydro at RUB0.7 per share target price. Revaluation of swap contract with VTB Bank pushed bottom line down by RUB2.8bn in 3Q19. RusHydro's net debt decreased to RUB150.7bn (down 17% q/q).
92​ RUSSIA Country Report​ February 2020 ​ ​www.intellinews.com