WITHIN 3 YEARS M.VIDEO AND ELDORADO CONSOLIDATION WILL INCREASE MARKET SHARE TO 30%

M.Video-Eldorado Group has plans to reach a 30% share of the Russian market for home appliances and electronics within three years, reported an RNS journalist at a presentation of the company’s financial results.

Currently, M.Video-Eldorado Group’s share is 25.9%. After 2020, the company expects to increase this to over 30%.

The company noted that it plans to open more than 60 new M.Video and Eldorado stores in what were previously 42 MediaMarkt network stores. M.Video-Eldorado plans to increase profitability tenfold in MediaMarkt stores by using a new business model.

The retailer’s press-service also reported that M.Video-Eldorado Group’s consolidated net profit almost doubled in the first half of 2018.

Net profit, including the two months that Eldorado was part of the Group, increased by 88% compared to the same period in 2017, reaching 4.7 billion rubles; the net margin was 4%. Consolidated gross profit increased by 47.2% to 30.8 billion rubles, and the gross margin was 26%.

Revenue for the same period increased by 41.7% to 118.1 billion rubles. EBITDA almost doubled, reaching 9 billion rubles, and the EBITDA margin increased by 2.1 percentage points to 7.6%.

The group’s overall proforma revenue, which includes data from Eldorado prior to its acquisition, increased by 16.5% to 149.6 billion rubles. Gross profit increased by 24.4% to 38.4 billion rubles, and the gross margin increased by 1.7 percentage points to 25.7%. During the same period, EBITDA nearly tripled, reaching 9 billion rubles, while the EBITDA margin increased by 3.5 percentage points to 6%.