M.Video might up capex to 5 bln rubles in 2013, will keep paying dividends
MOSCOW. March 28 (Interfax) - M.Video , one of Russia's leading consumer electronics and appliance retailers, might increase capital expenditures to 5 billion rubles in 2013, the company's financial director, Christopher Parks said in a conference call on Wednesday.
M.Video plans to open at least 35 new stores this year, investing about 39 million rubles in each one. It also plans to renovate 16 existing stores at an estimated cost of about 30 million rubles each.
The company is also setting aside 400 million rubles for purchasing and updating equipment for its stores and 700 million rubles for possible acquisition of retail outlets, Parks said.
The company might spend another 1.6 billion-2 billion rubles on other projects, such as development of its IT platform.
M.Video's capex totalled 3.3 billion rubles in 2012, less than the management forecast of 4 billion rubles.
The retailer on Wednesday released its financial statement to International Financial Reporting Standards for 2012, showing net profit grew 23% to 4.141 billion rubles on net revenue up 19% to 133.6 billion rubles. The company's profit was slightly better than the Interfax consensus forecast of 4.096 billion rubles.
Net cash used for investment increased to 3.97 billion rubles in 2012 from 3.482 billion rubles a year earlier. Operating cash flow amounted to 3.619 billion rubles at the end of last year, compared to 10.21 billion rubles a year earlier.
The company's cash and cash equivalents shrank to 6.521 billion rubles at the end of 2012 from 13.22 billion rubles at the beginning of the year.
M.Video paid out record dividends last year. In December, shareholders approved special dividends of 5.4 billion rubles, or 30 rubles per share. In addition, at the annual general meeting they approved dividends for 2011 of 1.043 billion rubles, or 5.80 rubles per share.
M.Video plans to continue to share its profit with shareholders, company president and co-owner Alexander Tynkovan said in the conference call, adding that he was referring to regular dividends. Payment of special dividends like in 2012 will only be possible after the company accumulates sufficient cash in the next two or three years. For now, M.Video will focus on annual dividends, Tynkovan said.
M.Video opened 42 new stores in 2012 and at the end of the year operated a chain of 296 stores in 127 Russian cities.
Cyprus based Svece Ltd is M.Video's principal shareholder, with 57.8% of shares. Svece, in turn, is a wholly owned subsidiary of M.Video Investment Ltd., the controlling stake in which is held by Alexander Tynkovan. Mikhail Tynkovan and Pavel Breyev are also major shareholders of M.Video.
