12/11/2013

Detskiy mir Group announces unaudited financial results for the nine months of 2013

November 12, 2013. Moscow, Russia -Detskiy mir Group (hereinafter - the "Group" or the "Company"), the biggest children's product retail chain in Russia and Kazakhstan, announces its unaudited US GAAP results for the first nine months of 2013 ended on September 30, 2013. 

KEY FINANCIAL HIGHLIGHTS

  • Revenue increased by 34% year-on-year and reached RUB 24,076 million.
  • Growth of LFL-sales within the corporate retail chain amounted to 15%.
  • Gross profit up 28% year-on-year to RUB 8,850 million.
  • S&A expenses to sales ratio reduced by 4.8 p.p. to 32.9%.
  • OIBDA increased by 6.7 times and reached RUB 945 million.
  • Net profit amounted to RUB 38 million, compared to net loss of RUB 510 million in the corresponding period of 2012.
  • As of September 30, 2013, the Group's net debt was RUB 6,128 million.
  • Retail space has expanded by 3% to 299,000 sq.m since the beginning of the year. 

Vladimir Chirakhov, General Director of Detskiy mir Group,commented on the financial results for the nine months of 2013: 

"This is the first time since 2008 that the Company finished the nine-month period with net profit, a 34% revenue growth and a substantial increase in OIBDA. These results were achieved through the Group's successful restructuring and business optimisation, the active implementation of our new product-line strategy, regional expansion and the management team's substantial contributions.

In the fourth quarter, the Company will continue strengthening its position with five new store openings lined up in Moscow, as well as further new store launches in Tyumen, Krasnoyarsk, Novokuznetsk, Murmansk, Abakan and Kazakhstan.One of this year's highlights will be the opening of the first flagship store in the "MEGA Belaya Dacha" Moscow shopping centre this December".

Download full version of press release 

Additional Information:

Nadezhda Kiselyova,

Head of the PR Department

+ 7 (495) 781-08-09

pressa@detmir.ru

Valery Prokopyev,

Press Secretary

+ 7 (495) 781-08-09

pressa@detmir.ru

Detskiy mir Groupis the largest children's products retail operator in Russia. The Group incorporates the national retail store chain Detskiy mir, luxury center Children's Gallery "Yakimanka", ELC - Early Learning Center chain, and Detskiy mir and ELC Internet-stores. At present, Detskiy mir chain consists of 209 format super- and hypermarkets located in 100 cities in Russia and Kazakhstan, "ELC" chain incorporates 24 stores. The total sales area of the Group stores is 300 thou sq.m. OJSC Detskiy mir - Center, with JSFC Sistema as its major shareholder, is the management company of the Group. Web-sites of Detskiy mir Group: www.detmir.ru, www.yakimankagallery.ru, www.elc-russia.ru. 

Sistema is the largest publicly-traded diversified holding company in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of US$ 8.5 billion for the second quarter of 2013, and total assets of US$ 44.4 billion as at June 30, 2013. Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol "AFKS" on the MICEX-RTS Stock Exchange. Sistema was ranked number 315 in the 2011 edition of the Fortune Global 500 list. Website: www.sistema.com

Some statements in this document may contain assumptions or forecasts in relation to forthcoming events of Detskiy mir Group or JSFC Sistema. Such statements include words "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", their negative forms or other similar expressions. It is important to note that these statements are only assumptions and actual events or results may differ materially from what was stated. We'll not reconsider such statements in order to bring them in line with real events and circumstances that can occur after the stated date or reflect events not expected to occur. Due to many factors, the reals results of Detskiy mir Group and JSFC Sistema may differ materially from those contained in our assumptions or forecasts, including, among others, general economic conditions, competitive environment we are operating in, risks associated with operation in Russia, rapid technological and market changes in our lines of business, as well as many other risks directly related to Detskiy mir Group and JSFC Sistema.

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