SFI : M.Video–Eldorado Group to present operational and financial results under IFRS for the first half of 2023

Key indicators for M.Video-Eldorado for the second quarter and first half of 2023 are as follows:

· Compared to the same period last year, the gross merchandise value (GMV) for Q2 2023 have increased by 26.4%. GMV for the first half of 2023 was 219.0 billion rubles (VAT included), marking a 16.5% decrease year-on-year, due to an exceptional surge in sales from February until March 2022, which set a high benchmark for the first half of 2022.

· In the first half of 2023, total online sales saw a rise of 3.7 percentage points (p.p.) to make up 71% of the GMV, amounting to 155.4 billion rubles (VAT included). Half of the Group's turnover is now generated through mobile solutions.

· The Group's revenue increased by 21.0% in the second quarter, but the figure for the first half of the year saw an 18.1% decrease year-on-year, totaling 179.2 billion rubles.

· Despite the overall volatile macroeconomic situation, the gross margin rose by 1.3 p.p. to 21.8%. The gross profit was 39.1 billion rubles (39.2 billion rubles under IFRS 16).

· Excluding depreciation and amortization, Selling, General and Administrative (SG&A) expenses were 31.9 billion rubles (22.1 billion rubles under IFRS 16), marking a 15.7% decrease, compared to the expenses in 2022 due to the implementation of several operational efficiency measures.

· The EBITDA margin saw an increase of 0.9 p.p., reaching 4.1%. The Group's EBITDA rose by 5.8% year-on-year to 7.4 billion rubles (17.2 billion rubles under IFRS 16), with the second quarter witnessing an EBITDA growth of over 80%.

· As of June 30, 2023, the Group's net debt stood at 83.4 billion rubles. The rise in net debt was attributed to an increase in the import share to 30% and higher procurement levels due to a rising sales trend.

· As of June 30, 2023, the M.Video and Eldorado store network included 1,203 stores of all formats. The company launched 13 new M.Video stores in a compact format.

· Customers of both companies recycled nearly 2 million batteries and 27,000 devices, marking an almost 20% increase compared to the same period in 2022.

For more detailed information on the company's financials, please follow this link.