Page 136 - RusRPTDec22

The timing and amount of insurance compensation for the losses from the fire at the warehouse are yet to be determined, but it is possible that they might slip into 2023.
Ozon reported 3Q22 IFRS results – decent growth, with a second quarter of +ve EBITDA
§ GMV in 3Q22 grew 74% y/y to Rb188 bn on the back of 91% increase in number of orders (number of active customers +54%, order frequency +56% to 11.7 LTM). The growth was strong thanks to market growth and further market share gains, though with a slowdown (+92% in 2Q22), on less aggressive investments, we believe.
§ As a result, revenue grew 48% - lagged GMV as 3P continued to drive growth (78% GMV vs 67% in 3Q21), but supported by an increase in Ozon’s marketplace commission from mid-March (commission revenue +135% y/y), growth in advertising revenue (+176% y/y) and in other revenue including financial (+4x y/y).
§ The company showed positive adj. EBITDA for the second quarter in a row - Rb1.6 bn (c1% GMV) – a major improvement in relative terms y/y (at 10.4% GMV in 3Q21) as the company keeps focusing on improvement of unit economics and thanks to increase in marketplace take rate and strong jump in ad revenue.
§ Net loss stood at Rb21 bn (11% GMV) including R1.9 bn FX loss and Rb11 bn losses and write-offs related to the fire at the fulfilment center in August. We note that the goods and equipment in the fulfilment center were insured, so if the company gets compensation, it should later book a reversal of this loss.
§ FCF for 9m22 stood at neg Rb62 bn (loss expanded 47% y/y) alongside 2.6x y/y increase in Capex to Rb27 bn (5% GMV) due to Ozon stocking up on the equipment earlier in the year. In 3Q22 FCF was +ve Rb0.9 bn vs neg 14.6 bn in 3Q21.
§ In September, the company has obtained extra debt financing for up to Rb60 bn (c$1 bn) with a 4 year maturity. Recall, it has recently agreed to buyout the holders of its $0.75 bn convertible bonds issue at discount to par.
136 RUSSIA Country Report December 2022 www.intellinews.com