OREANDA-NEWS. April 20, 2011. Detskiy Mir Group - the largest children’s goods retailer in Russia - announces its unaudited financial results under US GAAP for 2010, reported the press-centre of Sistema.

KEY FINANCIAL RESULTS
Revenue in 2010 increased year on year by 8.0% (12.8%  in USD terms) to 20 023 million rubles (USD 659 mln).

Gross  revenue increased by 24.9% year on year to 8 524 million rubles (USD 281 mln). Gross  margin  increased  by 5.8  percentage points in 2010 to 42.6%.

Selling general and administrative expenses (SG&A) decreased by 12.5% in 2010 to 7 317  million rubles (USD 241 mln). SG&A as a percentage of revenues decreased by 8.5 percentage points to 36,5%.

OIBDA reached 1 250 million rubles (USD 41 mln) in 2010 compared to loss of 1 645 million rubles (USD 52 mln) in 2009. OIBDA margin reached  6.2% in 2010.

Ney income reached 33 million rubles (USD 1 mln) in 2010 compared to loss of 3 247 million rubles (USD 102 mln) in 2009.

Group’s debt decreased by 52.4% during 2010 to 3 748 million rubles (USD 123 mln).

Group’s operating cash flow reached 304 million rubles (USD 10 mln) in 2010.

KEY OPERATING RESULTS
Company’s markets share equaled 5.6%.

The number of stores increased to 131 by the end of 2010, cumulative trading area reached  214.5 thousand sq. m.

The CEO of Detskiy mir Group George Kravchenko commented on the 2010 results: “It should be noted that the Company has successfully overcome the consequences of the financial crisis. The major achievements of the passed year were the enhanced efficiency and the financial stability of the business. The increased share of direct foreign goods purchases resulted in higher gross margin, while the cost optimization program brought overall profitability. Besides, with the support of JSFC Sistema, Sberbank’s equity injection allowed to substantially strengthen the financial position of the Company. Debt significantly decreased year on year by end 2010.

Our priorities for 2011 are the increase of market share and strengthening of our leadership on the toy market. One of the Company’s priorities is the development of relationship with worldwide toy brands and further product line enhancement through the exclusive supply of unique products. In general, the Company will be strengthening its position through the implementation of modern trade practices, the optimization of existing store formats and active store network expansion.

In December 2010 Detskiy mir launched online store of children’s goods, which has been successfully gaining revenues and attracting customers. The project has already received a number of well-deserved e-commerce rewards and is an interesting, promising and strategic project for Detskiy mir.”