OREANDA-NEWS. April 28, 2011. OJSC “Company M.video” (“M.video” or the “Group”), Russia's largest consumer electronics retailer (RTS, MICEX: MVID), releases today its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for the year ended December 31st, 2010.

M.video retail sales increased by 23% to 102 billion Russian rubles (RUB) with VAT in FY 2010. Growth in revenue was mainly driven by M.video’s expansion and opening a record number of 44 stores in 2010 as well as due to increased like-for-like stores sales of 9%. The Group’s gross profit increased to 22.4 billion RUB. M.video’s gross margin grew to 25.8% in FY 2010 as compared to 25.3% in FY 2009.

M.video’s operating profit (EBIT) increased by more than 50% to 3.2 billion RUB with the EBIT margin of 3.7% in FY 2010.

The Group’s EBITDA increased up to 4.5 billion RUB in FY 2010 as compared to 3.2 billion RUB in FY 2009 while the EBITDA margin amounted to 5.2% in FY 2010.

M.video’s net profit for the FY 2010 improved significantly and grew 184% to 2.2 billion RUB from 0.8 billion RUB.

Alexander Tynkovan, President of OJSC “Company “M.video”, commented that: “We demonstrated quite remarkable profitability improvements in FY 2010 while sustaining network expansion and preserving positive cash generation from our operations”. He also added: “Our solid financial position and improved profitability allows us to continue our expansion in Russia while expecting the Company to pay steady amounts in dividends for the foreseeable future”.