M.Video-Eldorado reports its IFRS results for 2022

M.Video-Eldorado Group (MOEX: MVID, SFI owns 10,4%), Russia’s leading e-commerce and consumer electronics retailer, announces its audited consolidated financial results under International Financial Reporting Standards (IFRS) for the twelve months ended December 31, 2022.

2022 M.Video-Eldorado Group operational and financial highlights:

• The Group’s gross merchandise value (GMV ) decreased by 14.3% year-on-year to RUB 488.9 billion (incl. VAT). Total online sales amounted to 326.8 billion (incl. VAT), accounting for 67% of the Group's GMV.

• Total traffic, online and offline combined, saw a 7.2% year-on-year decrease to 1.3 billion visits due to general decline in demand in the consumer electronics market in 2H 2022. At the same time, traffic in the client's mobile app increased by 32% year-on-year.

• The share of imported goods increased significantly in 2H 2022 and amounted to 25% of total sales in 4Q 2022.

• The turnover of own marketplace more than tripled due to over 100% growth of the assortment of consumer electronics to 110,000 SKUs.

• The Group’s revenue decreased by 15.5% year-on-year to RUB 402.5 billion.

• Gross profit decreased by 5.1% year-on-year to RUB 83.0 billion (RUB 83.1 billion under IFRS 16). Gross margin4 increased by 2.3 percentage points (p.p.) to 20.6% despite the overall macroeconomic volatility.

• Selling, general and administrative expenses (SG&A), excluding depreciation and amortization, amounted to RUB 68.7 billion (49.4 billion under IFRS 16), the comparable expenses have decreased by 17.9% year-on-year on the back of the program to boost operational efficiency. The total decrease of SG&A expenses, excluding depreciation and amortization, and capital expenditures, amounted to RUB 24 billion in 2022.

• The Group’s adjusted EBITDA increased by 69% to RUB 15.5 billion. Adjusted EBITDA margin6 grew 1.9 p.p. year-on-year to 3.8%.

• The Group’s adjusted net loss6 decreased by 10.2% to RUB 6.7 billion (RUB 9.5 billion under IFRS 16).

• The Group’s net debt as of 31 December, 2022 was RUB 65.5 billion, with net debt / adjusted EBITDA6 at 4.2х (vs. 6.3х as at 31 December, 2021).

• As at the end of December 2022, the M.Video and Eldorado store network consisted of 1,226 stores of all formats.

The audited consolidated financial statements prepared in accordance with IFRS for the twelve months ended December 31, 2022 are available on the Group's corporate website.