In 9 Months "Obuv Rossii" Increased Its Revenue by 13% - up to 6.3 Billion Rubles

22.11.16

"Obuv Rossii" Group of Companies, one of the leaders of the Russian footwear market, sums up financial results of 9 months of 2016 by the Russian Accounting Standards. 
  • The revenue of the Group in the reporting period increased by 13% and was 6.3 billion rubles.
  • Net profit — 741 million rubles, the growth in comparison with the same period of 2015 — 0.8%.
  • EBITDA increased by 8% — to 1.6 billion rubles.
  • EBITDA profitability was 25.3% (the indicator of 9 months of 2015 — 26.4%).
  • Growth of comparable sales in money terms (like-for-like) for 9 months of 2016 was 14.4%.

This year the situation on the footwear market is stabilizing: the footwear consumption reduced by 18-20% last year, but it is growing this year. Thus, the increase of sales in pairs for 9 months of 2016 was 10% in all retail chains that belong to "Obuv Rossii" GC. This is also explained by the effect of deferred demand, when purchasers who deferred the purchase of footwear during 1.5-2 years returned to the shops this year.

"Obuv Rossii" continues to develop its own production: the Company has developed a line of tactical footwear, that withstands overloads, and plans to launch its production in the end of the year. In September "Obuv Rossii" concluded a contract with "Largos" for the production and supply of 200 thousand pairs of military footwear for the amount of 500 million rubles in 2017. In autumn "Obuv Rossii" made its production areas 1.5 times bigger – to 5.8 thousand sq.m. The Company will place a special footwear production workshop and new cutting-and-sewing systems on the new areas.

Additional services for purchasers are one of important directions of the Company's activity. "Obuv Rossii" connected the Internet store of "Westfalika" to the "Arifmetika" ("Arithmetics") system: now, placing an order, purchasers can apply a card of the "Arifmetika" Club of Comfortable Purchases and get a discount. In addition, in autumn the retail outlets of "Obuv Rossii" started to accept cards of the "Mir" ("World") national payment system, and the Company issued a single gift card, instead of old gift certificates, that allows purchasing in any of the five chains belonging to the Group. 
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