Detskiy Mir 1Q 20 IFRS Company News - Net loss due to RUB depreciation, dividends postponed
On April 30 Detskiy Mir released their unaudited 1Q 20 IFRS results and held a conference call. Overall, we consider them negative. While the EBITDA margin was a bit better than our and Interfax consensus estimates, the net loss turned out to be higher than we expected on a much higher than anticipated FX loss, which should translate into a similar loss under RAS and hence affect the companys dividends. The company disclosed that its sales declined by 33% yoy in the first 27 days of April, although the dynamics in the last week of the period were better with a 19% yoy decline. At the conference call, Detskiy Mir announced that it is postponing paying dividends for 2019 until the restrictions are lifted.Detskiy Mir PAO is a Russia-based company, which is primarily engaged in the children products retail sector. The Company offers a wide range of products, such as toys, clothing and footwear, baby goods, stationery, school and learning related products, creative kits, sport related products, food, car seats, furniture, among others. The Company's structure includes the chain of stores Detskiy Mir and the retail network ELC (Early Learning Center). The Company's Detskiy Mir chain comprises over 480 stores located on the territory of the Russian Federation and Kazakhstan, as well as more than 40 ECL stores. Detskiy Mir PAO is primarily active domestically and in the Commonwealth of Independent States (CIS) countries. In addition, the Company sells products online via its Website. The Company's major shareholder is AFK Sistema PAO.
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