Page 127 - RusRPTNov22

Fashion Group is one of the largest and fastest-growing fashion retailers in Russia, according to Sistema’s press release. Its brands include Zarina, befree, Love Republic and Sela. It is engaged in the full cycle of fashion production, from modelling to sales distribution and promotion. Melon Fashion Group operated 845 stores in Russia and the CIS (Kazakhstan, Armenia and Belarus) as of the end of 2021. Online sales accounted for 32% revenue in 2021. Melon Fashion Group’s revenue in 2021 was at Rb37.5bn (+49% y/y), EBITDA was at Rb8.6bn (+38% y/y), net profit was Rb3.5bn. The company had no debt and cash and cash equivalents of Rb5.2bn at end 2021.
Danone is seeking an exit from its dairy and yoghurt business in Russia
in a transaction that could result in a write-off of up to €1bn for one of the world’s biggest makers of consumer goods. Almost eight months since Russia’s full-scale invasion of Ukraine, the French group said on Friday that it would “initiate a process to transfer the effective control” of the business, which includes 13 factories, 7,200 employees and accounts for 5 per cent of its annual sales of about €24bn. It remains unclear who will take over the business whose most popular brand is a local one called Prostokvashino, or if there would be proceeds from a sale. The move would not represent a complete exit from Russia though since Danone will continue to sell baby formula in the country.
France’s Danone has said in a letter to its partners that the transfer of Russian assets to another entity will require a long time, and the company will continue working as usual throughout the period, an industry source told PRIME late on October 14. Earlier in the day, Danone said that it planned to transfer the control of its dairy and plant-based business in Russia, and can write off up to 1bn euros. The Agriculture Ministry said later that all Danone’s plants continued working as usual. “The letter says that a transition period of this deal could take a while, and that the company planned to continue working as usual and making the same products throughout the period,” the source said. Danone confirmed the plans to transfer control over its Russian assets to another entity, but provided no details in the letter, the source said.
The net profit of Russian retailer Fix Price shrank by 19% on the year to 12.093bn rubles in January–September, as calculated under International Financial Reporting Standards (IFRS), the company said in a statement on Thursday. Revenue gained 23.1% to 201.887bn rubles. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 27.1% to 39.127bn rubles. The EBITDA margin grew to 19.4% from 18.8%.
Russian clothes distributor Jamilco plans to buy the Russian business of British children's clothing and goods chain Mothercare, which announced its withdrawal from the Russian market, business daily Kommersant reported on October 27citing three sources in the retail market. According to the sources, the distributor is in talks with the Kuwaiti company Alshaya Group, which owns the master franchise brand Mothercare in Russia. According to
127 RUSSIA Country Report November 2022 www.intellinews.com