OREANDA-NEWS. August 19, 2013. Russia.Detsky mir Group (hereinafter - the Group), the largest children's products retailer, announces the unaudited financial results, prepared in accordance with the US GAAP principles, for the first six months 2013 ended June 30, 2013.

MAIN  FINANCIAL  RESULTS
- Revenue in 1H 2013 grew by 34% (33% in USD terms) to RUB 14,291 mln (US\\$ 461 mln), compared with the same period of 2012.

- LFL sales in the retail segment increased by 14%.

- Gross profit increased in 1H 2013 by 23% (21% in USD terms) and amounted to RUB 4,802 mln (USD 155 mln).

- SG&A to revenue ratio reduced by 6.7 p.p to 34.8%

- OIBDA loss in 1H 2013 significantly reduced to RUB 159 mln (USD 5 mln).

- Net loss reduced in 1H 2013 by 34% to RUB 570 mln (USD 18 mln), compared to the loss of RUB 868 mln (USD 28 mln) in 1H 2012.

- Net debt decreased by 30% to RUB 2,226 mln (USD 68 mln).

- Retail space increased by 2% in 1H 2013 to 297,000 sq.m.

Commenting on the financial results for 1H 2013, Vladimir Chirakhov, Detsky mir Group CEO, said:
"Despite seasonal decrease in customers purchasing activity, Detsky mir demonstrated strong financial results in 1H 2013. Revenue increased by 34%, sales by comparable stores (like-for-like) increased by 14%.

We recognized net income of RUB 25 mln in the second quarter of 2013 and halved net loss for the first half of 2013. Strong results were supported by improvement in business processes efficiency and reduction of administrative expenses on the one hand, and changes in the commercial policy aimed to increase sales on the other.

In 2013, in addition to the planned growth of financial indicators, we aim to expand our business: we opened seven  Detsky mir chain stores in the first half of 2013, as well as two ELC stores and 24 ELC corners (Early Development Centers) and plan to open another 30 Detski Mir stores, eight ELC stores and twenty-six ELC corners until the year end.

In the second half of 2013, the Group will continue executing projects aimed at improving business efficiency, developing e-commerce, and expanding the private label product range.

By the year end, Detsky mir is planning to present its new store concept that, owing to new marketing and stylistic solutions, will become more consumer-oriented and efficient with regard to operating indicators".