Page 148 - RusRPTOct20

details over the housing class and budget. LSR is up 10% in the last three months to trade on P/NAV of 0.4x, representing to us the most balanced exposure in our real estate sector coverage.
9.2.5​ Retail corporate news
Detsky Mir​ published strong operating results for August ​on September 1. Despite the high base from 3Q19, when LFL sales rose 10.7% y/y, revenue growth sped up to 15.1% y/y from 13.9% in July amid 7.5% LFL sales growth. The pickup in top-line growth was driven by a 23.6% y/y increase in the back-to-school category. Online sales were 2.6 times higher than last August, underpinned by back-to-school (sales 3.5 times higher) and toys (2.6 times). Over 90% of online orders were picked up in stores, of, which 95% were handed to customers within 60 minutes of purchase. After the close in Moscow, Sistema and RCIF announced plans to sell up to 25% + 1 share in Detsky Mir, which meant that they could potentially exit the stock entirely. This morning, it turned out that they had done so. The deal took place overnight at R112 per share, a 0.85% discount to the previous close. The total deal size was R20.7bn ($282mn).
London-listed DP Eurasia, the Domino’s Pizza brand operator in Turkey and Russia, on September 8 recorded a 74% slump in first-half core profit​. The company particularly pinned the decline on the Russian market where, for instance, coronavirus (COVID-19) restrictions in Moscow, including a 72-day curfew, were much heavier than what it faced on its main market Turkey. It also referred to tougher competition from food delivery providers in Russia, where margins dropped to a negative 10.5% from 4.9%. Business was returning to pre-pandemic levels in Turkey, DP Eurasia said. It reported 27.5% like​-f​ or​-​like growth Turkey in July and August, while the decline in Russia had decelerated to 10.9% as against 20.1% in the first half. Adjusted Ebitda, excluding the effect of the IFRS 16 accounting standards, sank to Turkish lira (TRY) 12.1mn ($1.62mn) from TRY46.4mn a year before, with TRY8.6mn of pandemic-related costs taking a toll. DP Eurasia added that it shuttered 11 stores net in the first half in the face of the virus impact. It opened an average 65 stores a year between 2011 and 2019.
Obuv Rossii reported 1H20 IFRS. The results came in 10% below on EBITDA (-61% y/y) and mostly in line with estimated net loss.
Retail sales declined 26.4% y/y mainly on the back of COVID-19 lockdown, as well as -1.2% in selling space and +0.2% in LfL sales Retail revenue was down 29.6% y/y to RUB1,903mn, incl. revenue of Prodayom platform (amounted to RUB277mn)
Wholesale revenue declined 58.2% y/y to RUB735mn
Cash loan revenue was up 44% y/y to RUB1,325mn
Share of high-margin related products rose from 35.3% in 1H19 to
148 ​RUSSIA Country Report​ October 2020 ​ ​www.intellinews.com