Dixy Group Announces 9M Consolidated Unaudited IFRS Results
OREANDA-NEWS. December 21, 2011. DIXY Group (RTS, MICEX: DIXY) - one of
everyday products - announces consolidated unaudited IFRS results for the nine
months of 2011.
Key Results of the Nine Months and the Third Quarter of 2011
• During the nine months of 2011, the combined Company opened 168 new stores, having increased pro-forma selling space (including Victoria Group from the beginning of 2010 and 2011) by 11,7% year-on-year, while DIXY Group standalone selling space increased by 17% year-on-year.
• Consolidated Revenue for the third quarter 2011 increased by 89.2% (100.1% in USD) year-on-year to RUR 29.2 bln (USD 1.0 mln). Revenue for the nine months increased by 48.2% (55.9% in USD) to RUR 68.3 bln (USD 2.4 bln).
• Consolidated Gross Profit for the third quarter increased by 129.2% (142.7% in USD) to RUR 8.1 bln (USD 279 mln), while Gross Margin increased by 490 bp year-on-year to 27.7% of sales compared to 22.8% for the same period of 2010. Gross Profit for the nine months increased by 66.9% (75.5% in USD) to RUR 18.0 bln (USD 626 mln), while respective Gross Margin increased by 300 bp year-on-year to 26.4% of sales compared to 23.4% for the same period of 2010.
• Consolidated EBITDA for the third quarter increased by 228.1% (249.8% in USD) year- on-year to RUR 1.7 bln (USD 60 mln), while EBITDA margin increased by 260 bp to the level of 6.0% from 3.4% in the same period of 2010. EBITDA for the nine months increased by 86% (95.6% in USD) year-on-year to RUR 4.3 bln (USD 149 mln), while EBITDA margin increased by 130 bp year-on-year to the level of 6.3% from 5.0% in the same period of 2010.
• Consolidated Net Profit for the third quarter amounted to RUR 293 mln (USD 10 mln) for a Net Margin of 1.0% of sales compared to a net loss for the same period of 2010. Net Profit for the nine months amounted to RUR 850 mln (USD 30 mln) compared to a
net loss for the same period of 2010. Net Margin amounted to 1.2% of sales.
• Consolidated Net Cash from Operating Activities for the third quarter amounted to RUR 682 mln (USD 23 mln) compared to negative net cash from operating activities for the same period of 2010. Net Cash from Operating Activities for the nine months increased by 158.9% (172.2% in USD) over the same period of 2010 to RUR 1.9 bln (USD 69 mln).
New stores were opened in the Central, Northwest and Urals Federal Districts through long-term lease agreements, except for six acquired stores (3 hypermarkets Megamart in the Urals and 3 neighborhood stores DIXY - one in St-Petersburg and two in the Central Federal District). In September 2011 the total number of stores exceeded a thousandth store mark, and as of November 30, 2011, the Company operated 1,050 stores.
In the third quarter of 2011 the Company conducted a significant part of the 38 neighborhood stores Kvartal rebranding in the Northwest region, planned for 2011. As a result, 19 stores were rebranded into DIXY format. As of November 30, 2011, 31 Kvartal is rebranded into DIXY format.
In the third quarter of 2011 DIXY Group continued to implement marketing initiatives on optimization of assortment and floor space, improvement of external and internal design of stores and their clearer positioning, as well as improvement of customer service and better marketing communications (in particular, in September the advertising campaign developed jointly by DIXY and Saatch&Saatchi and launched in June 2011, was named best in the industry at the retail chain competition held during 10th annual Retail Business Russia 2011 international summit). These efforts have led to an 8.0% increase in like-fo- like sales for DIXY format, and to a 10.5% increase in average ticket (with the highest ticket growth of 11.2% in the
The efficiency of the promotional activities was made possible also by means of increased levels of centralization of deliveries (rate of deliveries through own distribution centers) and logistical service (success of delivery rate) with DIXY format centralization rate at 84% in the third quarter of 2011, and general logistics service level at 87%.
DIXY Group Financial Results for the Nine Months and the Third Quarter of 2011
These consolidated results are unaudited and preliminary since some items, such as goodwill, NMA, PPE, deferred taxes, favorable/unfavorable lease obligations are based on a preliminary auditor estimates, and can be changed later upon finalization of the valuation. All respective changes will be reflected in the audited IFRS financial statements for the full year of 2011.
Nine Months of 2011 Year-on-year
Revenue increased by 48.2% (55.9% in USD) to RUR 68.3 bln (USD 2.4 bln). Cost of Sales as a percentage of Revenue decreased by 300 bp to 73.6%.
Gross Profit increased by 66.9% (75.5% in USD) to RUR 18.0 bln (USD 626 mln). Gross Margin increased by 300 bp year-on-year to 26.4% of sales compared to 23.4% for the same period of 2010.
EBITDA increased by 86% (95.6% in USD) to RUR 4.3 bln (USD 149 mln). EBITDA margin increased by 130 bp year-on-year to the level of 6.3% from 5.0% in the same period of 2010.
Net Profit amounted to RUR 850 mln (USD 30 mln) compared to a net loss for the same period of 2010. Net Margin amounted to 1.2% of sales.
Net Cash from Operating Activities increased by 158.9% (172.2% in USD) over the same period of 2010 to RUR 1.9 bln (USD 69 mln).
Third Quarter of 2011 Year-on-year
Revenue increased by 89.2% (100.1% in USD) to RUR 29.2 bln (USD 1.0 mln).
Cost of Sales as a percentage of Revenue decreased by 300 bp to 72.3%.
Gross Profit increased by 129.2% (142.7% in USD) to RUR 8.1 bln (USD 279 mln). Gross Margin increased by 490 bp year-on-year to 27.7% of sales compared to 22.8% for the same period of 2010.
EBITDA increased by 228.1% (249.8% in USD) to RUR 1.7 bln (USD 60 mln). EBITDA margin increased by 260 bp year-on-year to the level of 6.0% from 3.4% in the same period of 2010.
Net Profit amounted to RUR 293 mln (USD 10 mln) for a Net Margin of 1.0% of sales compared to a net loss for the same period of 2010.
Net Cash from Operating Activities amounted to RUR 682 mln (USD 23 mln) compared to negative net cash from operating activities for the same period of 2010.
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