Detsky Mir shares up 5% on quarterly sales growth

Shares of Russia's largest chain of children's goods stores soared at the start of trading on the Moscow Exchange. In three months, total sales increased by 7,

Shares of Detsky Mir jumped 4.97% to ₽79.4 after the opening of trading on the Moscow Exchange. As of 12:30 Moscow time, growth slowed down to 0.6%, and the price corrected to ₽76.06. This is evidenced by the trading data of the Moscow Stock Exchange.

The growth driver of quotations was the publication of the results of the children's goods stores for the quarter. Detsky Mir increased its total sales volume (GMV) by 7.6% in the first quarter to ₽42.7 billion. The company's net revenue increased by 6.1% to ₽37.9 billion. , sales area and online traffic.

Against the backdrop of the ongoing covid-19 pandemic , as well as expanding product range and fast order fulfillment, online sales continued to grow in popularity in the first quarter. The company said that online sales in RUSSIA brought it about a third of its revenue - their total volume in three months grew by 19.9% ​​- to ₽13.1 billion.

Since the beginning of the year, Detsky Mir has opened eight new stores, including three Detsky Mir stores in Russia, two in Kazakhstan, and two stores in Belarus. As a result, the total number of the group's stores increased to 1,125 in 447 cities and towns in Russia, Kazakhstan and Belarus. Compared to last year, the number of stores increased by 28%.

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Detsky Mir also pointed to the key risks associated with the termination or restriction of the work of suppliers in Russia, disruptions in the supply chain, rising financing costs, currency volatility   and accelerated inflation, Anna Builakova, an analyst at Finam, said. However, despite the challenges and the negative impact in the first quarter, the company has the opportunity to eventually consolidate the market share of specialty retailers of children's goods, the expert said.

Detsky Mir Group is the largest Russian chain of children's goods stores. It unites Detsky Mir retail chains, an online store and marketplace, as well as the Zoozavr pet products chain. Group revenue for 2021 increased by 15% to ₽164.3 billion, gross profit increased by 14.7% to ₽50.4 billion. Adjusted EBITDA   increased by 6.2% to ₽18 billion. group (GMV) at the end of the year amounted to ₽184.3 billion (+16.9%).

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Change in price over a certain period of time. Financial indicator in financial risk management. Characterizes the trend of price volatility - a sharp drop or rise leads to an increase in volatility. Learn more Analytical measure of earnings before interest, taxes, depreciation and amortization. Despite its popularity, the US Securities Commission (SEC) does not consider it part of the Generally Accepted Accounting Principles (GAAP).