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Detskiy Mir PAO

12/02/2020 | Press release | Distributed by Public on 12/02/2020 00:37

Detsky Mir doubles its online sales, building on a bumper Black Friday 2020

2 / 12 / 2020

Moscow, Russia, 2 December 2020 - Detsky Mir Group ('Detsky Mir' or the 'Company', MOEX: DSKY), the largest specialized children's goods retailer in Russia and Kazakhstan, announces its sales performance for November 2020[1].

Detsky Mir has set a new record for its online sales, building on another successful Black Friday campaign, spanning the week from 23 November to 29 November. Friday, 27 November saw the sales peak for the whole campaign, with 266,000 online orders processed, twice as many as on the Black Friday of 29 November 2019, as well as the share of the online channel in Detsky Mir's total sales in Russia reached 52%. During the campaign week, sales for the Detsky Mir online store hit a record high RUB 1.3 bn, with apparel and toys among the top performers.

In November 2020, Detsky Mir Group's total sales, including online, grew 14.8% year-on-year. Sales via the Detsky Mir online store and mobile app increased more than twofold year-on-year to RUB 4.4 bn. The share of online sales in Detsky Mir's total revenue in Russia doubled year-on-year to 32.9%.

Maria Davydova, CEO of PJSC Detsky Mir:

'In November, we set several online sales records in a row: on the back of our seasonal campaigns, sales for the online store grew by an order of magnitude, and we were able to increase the number of orders processed to post one of the highest growth rates across the Russian e-commerce segment.

'This solid performance proves that we are heading in the right direction, dramatically accelerating our total revenue growth and further consolidating the market. Importantly, we are holding our position among our segment's top performers in terms of margins. We expect even better performance on adjusted EBITDA margin for October and November.

'The convenient and fast click-and-collect service is supported by the aggressive expansion of our retail chain's footprint and the increasing total store count across all formats. Since each store serves to concentrate the Company's merchandise inventory, our clients can receive their orders within 60 minutes after the online purchase. Moreover, the customers can take advantage of the super express delivery service. Thanks to it, we are among the first to deliver orders in 250 cities of Russia in a few hours. In November, the number of retail stores of the traditional Detsky Mir format reached 800, and this strong expansion will continue until the end of the year.

'In October, we fully rolled out our own marketplace covering all categories, including apparel and footwear, toys and games, products for newborns and pet supplies, with the number of SKUs to grow to 2.4 million in the medium term.

'A new phase in our ongoing efforts to reinforce our logistics infrastructure was marked by the signing of a preliminary agreement to open a distribution center in Kazan based on Russian Post's fulfillment center, which will accelerate online delivery to customers in the Volga Federal District.

'The mobile app has also been increasingly gaining traction withcustomers, already generating over 65% of total online salesin the week of last November. We are planning to push this segment further and meet the most relevant needs of our customers.

'As part of our efforts to offer a seamless customer experience across our sales channels, we regularly launch new solutions and services to keep pace with customer demands and consumer expectations, the success of which is demonstrated by our business performance.'

For additional information:

The Detsky Mir Group of Companies (MOEX: DSKY) is an omnichannel retailer and the leader in the children's goods sector in Russia. The Group comprises the Detsky Mir and the Detmir Pickup retail chains, as well as the Zoozavr pet supplies retail chain. The Company operates a retail chain of 805 Detsky Mir stores located in 319 cities in Russia, Kazakhstan and Belarus, 13 Detmir Pickup stores, as well as 14 Zoozavr stores as of 30 November 2020. The total selling space was approximately 872,000 square meters.

Detsky Mir Group's shareholder structure as of the date of this announcement is as follows: Detsky Mir Group's shareholder structure as of the date of this announcement is as follows: free float[2] - 100%.

Websites: detmir.ru, ir.detmir.ru.

Disclaimer:

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of Detsky Mir. You can identify forward looking statements by terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will', 'could,' 'may' or 'might' the negative of such terms or other similar expressions. Detsky Mir wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Detsky Mir does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Detsky Mir, including, among others, general economic conditions, the competitive environment, risks associated with operating in the Russian Federation, rapid technological and market change in the industries Detsky Mir operates in, impact of COVID-19 pandemic on macroeconomic situation on the markets of presence and financial results of Detsky Mir and its subsidiaries, as well as many other risks specifically related to Detsky Mir and its operations.

([1]) The Company's consolidated financial measures for 2019-2020 and related interim periods are based on proforma financial information prepared as if IFRS 16 'Leases' had not been adopted, and thus do not represent IFRS measures.

([2]) Excluding quasi-treasury shares and shares held by management and directors (0.8% of total shares).