Eldorado reports 2010 and H1 2011 results
Eldorado LLC, Russia’s largest consumer electronics and domestic appliances retailer reports full year 2010 and H1 2011 results. H1 2011: Company turnover of RUR 41.5 bn (incl. VAT), EBITDA margin increased by 1.4 ppt to 4.3 %.
• Company turnover for 2010 was RUR 97.8 bn incl. VAT (RUR 82.9 bn excl. VAT)
• EBITDA of RUR 5.1 bn in 2010 with an EBITDA margin of 6.1%, the highest margin in the Russian CES industry
• Like-for-like sales increased by nearly 15%, average purchase rose by 18% and revenue per square meter grew by 15%
• In H1 2011 company turnover was RUR 41.5 bn incl. VAT (RUR 35.2 bn excl. VAT)
• EBITDA margin increased to 4.3 % compared to the prior year result of 2.9 %
• In 2011 Eldorado doubled its investment in expansion to nearly $100 mln
• The company forecasts total turnover in 2011 to rise to RUR 105 bn incl. VAT, with the EBITDA margin expected to climb to above 7%
“In the last 1.5 years we have managed to optimize each step of our business, close unprofitable stores and in 2011 reach a record-breaking rate of expansion. Eldorado is the industry leader by EBITDA margin. Financial results are improving and customer confidence in the brand is growing: these facts demonstrate the success of our chosen business model”.
Kakha Kobakhidze, Eldorado LLC CEO
In 2010 Eldorado adopted a new concept for its stores working with the UK-based retail agency, FITCH. Within three years this new retail concept will be implemented across Eldorado’s whole network. This rebranding, as well as a change in the company’s communications strategy, is one of the first results of the strategic business plan, established by management in December 2009. At the same time as rolling out the rebranding, the company closed unprofitable stores. August 2011 saw the opening of 26 stores, the largest number of new store openings in the company’s history. According to Eldorado’s strategic plan, there will be more than 50 new-format stores by the end of the year.
“New Eldorado stores not only represent worldwide best practice in retail but also create a comfortable and customer-friendly atmosphere”, – Eldorado CEO Kakha Kobakhidze commented. – “Our stores are a pleasant place to be, it is easy to find the goods you need and to get professional advice from our specialists. This is the principle - “It’s easy to live better” - upon which our communications strategy is based”.
“The Eldorado business is based on three pillars: innovation, environment and service. Innovation means that we provide cutting edge goods from world-leading brands that are available for the customer to see and appreciate using innovative retail technology. Environment is the atmosphere in our shops and having transparent and effective business processes. The last principle is best quality service before and after the purchase, which we provide thanks to the largest team of consulting, installation and set up service providers in our HiTechnic department”.
Eldorado is the largest consumer electronics and domestic appliances retailer in Russia. Eldorado is present in every city with population of 500,000 and more than 90% of the cities with population between 250,000-500,000.
HiTechnic is the service department of the Eldorado company, Russia’s largest service company. HiTechnic is present across the country and provides all kinds of service regarding the installment and adjustment of consumer electronics and domestic appliances.
Eldorado LLC is a part of the PPF Group, one of the largest finance and investment companies in Central and Eastern Europe.