Ozon shares rose 9% after the release of financial statements

The Russian marketplace more than doubled its sales turnover compared to the previous year. The number of active clients of the Ozon trading platform exceeded 25 million people,

Depository receipts Ozon rose by 9.5% - up to ₽1330 per security on the Moscow Exchange. This is evidenced by trading data as of 10:05 Moscow time. By 11:27 Moscow time, the growth of quotations slowed down to 4.1%, and the ADR price   dropped to ₽1265.

The rise in Ozon shares coincided with the publication of an update on financial results for 2021. The gross turnover of goods and services of the marketplace (gross merchandise value, GMV) in 2021 increased by 127% to ₽448.3 billion, the company said. The turnover dynamics exceeded the company's own forecast, which had expected a 120% increase in the figure.

The revenue of the Russian trading platform rose by 71% over the year, to ₽178.2 billion. The company’s own sales, advertising revenue and growth in commission revenue of the marketplace made a large contribution to the growth in revenue. The number of active buyers on the trading platform increased to 25.6 million people. Compared to the previous year, it increased by 86%. Order frequency per customer increased by 61% yoy to 8.7 orders.

The number of orders continues to grow - it reached 223.3 million units for the whole of 2021. The number of orders on the platform increased by 202% year-on-year compared to a 132% growth in the full year of 2020.

Adjusted EBITDA   was minus ₽41.2 billion in 2021 compared to minus ₽11.7 billion a year earlier. First of all this indicator is caused by growth of operating costs for development of physical infrastructure and IT, investments into attraction of new clients and employees, the company reported. The loss at the end of the year amounted to ₽56.8 billion against ₽22.3 billion in 2020.

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Ozon's results came out in line with the trends of recent quarters, said Dmitry Puchkarev, an expert at BCS World of Investments. The company continues to thrive with near triple-digit quarterly revenue growth, although it has slowed from 85% in Q3 2021 and 80% in Q4 2020.

Ozon's EBITDA is also suffering due to investments in business development and scaling, the expert noted. However, this can be called a natural situation for a company at the stage of growth, Puchkarev believes. The reduction in free cash flow   was due to a multiple increase in capital expenditures (CAPEX), while operating cash flow is improving, which, according to the expert, can be considered a positive trend.

Ozon is developing a marketplace where it offers sellers to sell goods, providing related services - from logistics, advertising and customer service to financial services. Ozon's debut on the NASDAQ exchange took place in November 2020 and became the best for Russian companies since 2011. On the same day, ADRs began trading on the Moscow Exchange and the St. Petersburg Stock Exchange under the ticker   OZON. On February 28, trading in Ozon depository receipts, representing the company's common stock on the NASDAQ, was suspended on the NASDAQ exchange.

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