27.11.2007, 18:49
Dixy Group Announces 9M Consolidated IFRS Results
OREANDA-NEWS. November 27, 2007. Dixy Group – one of the leading companies in Russian food retail market has published its 9 months 2007 unaudited consolidated results. 9 months 2007 net sales amounted to 25,638 million RUB, with a growth of 34% YoY (42% in USD, amounting 990 million USD). The growth is a result of successful new openings of Dixy, Minimart and Megamart stores.
Gross Profit YoY is up by 57% in RUB, amounting 6,002 million RUB (66% growth in USD, amounting 232 million USD). Company’s Gross Margin growing from 20.1% in 9 months 2006 to 23.4% in 9 months 2007. Growth of Gross Profit and Gross Margin is a result of changes made to pricing and assortment policies and growth of private label share in Company’s sales.
EBITDA has grown by 50% in RUB, being 2,203 million RUB (59% in USD being 85 million USD) with EBITDA margin rising from 7.7% in 9 months 2006 to 8.6% in 9 months 2007.
EBITDA has grown by 51% in RUB, being 1,162 million RUB (60% in USD, being 45 million USD) with EBITDA margin rising from 4.0% in 9 months 2006 to 4.5% in 9 months 2007.
Net profit has increased by 173% in RUB to 141 million RUB (188% in USD to 5,4 million USD) respectively. Dixy Group’s Net Profit has further potential for growth, taking into consideration the decrease in pressure of accrued interest from debt in the first six months of the year after IPO.
Net Debt has decreased from the year end 2006 from 6,276 million RUB (238 million USD) to 4,548 million RUB (182 million USD) at the end of 9 months 2007. Net Debt has greatly decreased in September 2007 after receipt of IPO proceeds and management believes is at the optimal level. Current debt structure is in a good shape and consists of more than 90% of Long – term financing and the average interest about 9.4% per annum. In the middle of November Dixy Group has opened new distribution center in Ryazan with overall area of 15,000 m2 and at the same time the Company is finishing construction of a big distribution center in Serpukhov region of Moscow oblast. All these steps are aimed at optimization of logistics costs and improving the efficiencies of procurement process.
Total size of the selling space, owned by the Company as of September 30 , 2007 has reached 33% from the total selling space (Company’s plan is to reach 37% as of the end of this year).
Oleg Leonov, Chairman of the Dixy Group board has commented: "Results for 9 months of the year are very positive and in line with our budget. Our Company consistently increases the efficiencies of operational process. The management keeps as our main priority assortment optimization, development of own private labels and at the same time we are improving the effectiveness of our stores operations. Due to all these initiatives we keep one of the highest sales on square meter among our peers (7,189 for 9 months 2007), improve our LFL sales and increase marginal growth of the business. We feel optimistic with the results achieved and plan to keep all these positive tendencies in the last quarter of 2007." Dixy Group is one of the leaders of Russian food retail market . The first Dixy store was opened in 1999 in Moscow and by October 2007 the Group has already operated 363 stores, including 349 Dixy (discounter) stores, 7 Megamarts (compact hypermarkets) and 7 Minimarkets (supermarkets) in three Federal Districts of Russia. Groups consolidated revenue in 2006 was $1,009 mln.
Gross Profit YoY is up by 57% in RUB, amounting 6,002 million RUB (66% growth in USD, amounting 232 million USD). Company’s Gross Margin growing from 20.1% in 9 months 2006 to 23.4% in 9 months 2007. Growth of Gross Profit and Gross Margin is a result of changes made to pricing and assortment policies and growth of private label share in Company’s sales.
EBITDA has grown by 50% in RUB, being 2,203 million RUB (59% in USD being 85 million USD) with EBITDA margin rising from 7.7% in 9 months 2006 to 8.6% in 9 months 2007.
EBITDA has grown by 51% in RUB, being 1,162 million RUB (60% in USD, being 45 million USD) with EBITDA margin rising from 4.0% in 9 months 2006 to 4.5% in 9 months 2007.
Net profit has increased by 173% in RUB to 141 million RUB (188% in USD to 5,4 million USD) respectively. Dixy Group’s Net Profit has further potential for growth, taking into consideration the decrease in pressure of accrued interest from debt in the first six months of the year after IPO.
Net Debt has decreased from the year end 2006 from 6,276 million RUB (238 million USD) to 4,548 million RUB (182 million USD) at the end of 9 months 2007. Net Debt has greatly decreased in September 2007 after receipt of IPO proceeds and management believes is at the optimal level. Current debt structure is in a good shape and consists of more than 90% of Long – term financing and the average interest about 9.4% per annum. In the middle of November Dixy Group has opened new distribution center in Ryazan with overall area of 15,000 m2 and at the same time the Company is finishing construction of a big distribution center in Serpukhov region of Moscow oblast. All these steps are aimed at optimization of logistics costs and improving the efficiencies of procurement process.
Total size of the selling space, owned by the Company as of September 30 , 2007 has reached 33% from the total selling space (Company’s plan is to reach 37% as of the end of this year).
Oleg Leonov, Chairman of the Dixy Group board has commented: "Results for 9 months of the year are very positive and in line with our budget. Our Company consistently increases the efficiencies of operational process. The management keeps as our main priority assortment optimization, development of own private labels and at the same time we are improving the effectiveness of our stores operations. Due to all these initiatives we keep one of the highest sales on square meter among our peers (7,189 for 9 months 2007), improve our LFL sales and increase marginal growth of the business. We feel optimistic with the results achieved and plan to keep all these positive tendencies in the last quarter of 2007." Dixy Group is one of the leaders of Russian food retail market . The first Dixy store was opened in 1999 in Moscow and by October 2007 the Group has already operated 363 stores, including 349 Dixy (discounter) stores, 7 Megamarts (compact hypermarkets) and 7 Minimarkets (supermarkets) in three Federal Districts of Russia. Groups consolidated revenue in 2006 was $1,009 mln.
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