In the First Half-Year Period "Obuv Rossii" Increased its Revenue by 7% — up to 4 Billion Rubles

23.08.16

"Obuv Rossii" Group of Companies that makes the top three largest footwear companies of the country strikes the financial balance of the first half-year by the Russian Accounting Standards (RSBU).

  • Revenue of the Group for the reporting period increased by 7% and was 4 billion rubles.

  • Net profit — 401 million rubles, growth in comparison with the same period of 2015 is 2.6%.

  • EBITDA increased by 7.3% — up to 934 million rubles.

  • EBITDA profitability was 23.4% (profitability of the first half-year period of 2015 was 23.3%).

  • Growth of comparable sales in money terms (like-for-like) for the first half-year period was 10%.

The positive dynamics of the main financial indicators is due to the fact that "Obuv Rossii" pursues a smart assortment policy: adapts its collections to the changing customer preferences; develops the area of related goods, including clothes; expands the set of financial services for customers and increases its own production. 

"Obuv Rossii" has increased the share of classic footwear of common colors that is most popular now. The company also includes lines of inexpensive footwear with the use of high-quality artificial materials (leather and fur) in its collections. Thus, in the summer season "Obuv Rossii" introduced a new footwear brand (Medelista) to the market, that is intended for customers in the age of 20 to 30 years. After successful test sales of the summer collection it was decided to further expand the assortment, adding demi-season and winter models to it.

In the first half-year period, the sales of related goods in retail chains of "Obuv Rossii" increased by 17% and were 733 million rubles. Now their share in the retail revenue is 25%. Diversification of assortment and development of related goods allows the company to boost complex purchases, support sales and increase the average purchase amount. 

"Obuv Rossii" develops the "Arithmetic" system of financial services. Now the amount of payments through this system doubles monthly, revenue increases by 25-30%. The service of payment of credits through the cash register is especially popular: the weekly amount of credit payments is 15 million rubles. The average amount of a credit payment is 5,000 rubles, other payments – 1,000 rubles. In summer the company started the emission of "Arithmetic" Master Card prepaid cards with a tied electronic purse.

In the first half-year period "Obuv Rossii" continued to increase the amount of its own production and to develop new areas. In May the company launched a line to produce military footwear. This is a joint project with Largos that works on the market of footwear for the army from 1998. In 2016 "Obuv Rossii" will produce 50 thousand pairs of military footwear, in 2017 it plans to increase the amount of production of such footwear up to 200 thousand pairs.

In May 2016 the company announced a 7-year program to develop production. Under the program "Obuv Rossii" will invest 5 billion rubles in the increase of production capacities, of which 2 billion are our own funds, and by 2022 the company will triple the amount of production: from 500 thousand pairs to 1.5 million pairs of footwear per year.

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