MOSCOW (Reuters) - Russian electronics retailer M.Video posted a 58 percent jump in first-half earnings on rising sales and said it may pay a special dividend to shareholders in December.
M.Video, Russia’s only listed home appliances retailer, is benefiting as consumers flock to its stores for new flat TVs and vacuum cleaners.
First-half net profit rose to 1.2 billion roubles ($37.5 million) on net revenue up 26 percent to 58.6 billion, M.Video said on Wednesday.
“We are now a cash-rich company, even though it is our low season at the end of June. We will start to accumulate cash again in September and continue to the end of the year even after our capex (capital expenditure) spend,” Chief Financial Officer Christopher Parks said in a conference call.
The first-half revenue gain was driven by the addition of 16 new stores, a 16 percent rise in like-for-like sales and a 71 percent increase in Internet sales, the company said.
The board will next month review a proposal by the company to use the excess cash to pay a special dividend of up to 30 roubles, in addition to its yearly dividend payouts, Parks said.
Shares in M.Video rose 3.6 percent to a month high of 272 roubles by 8.53 a.m. EDT, outperforming broad market index, which was down 0.3 percent.
Parks also said M.Video had raised its 2012 capex plan to 4.2 billion roubles from 4 billion as it plans to open at least 35 new stores and renovate some of existing ones.
Its earnings before interest, taxation, depreciation and amortization (EBITDA) rose 32 percent in the six months to 2.52 billion roubles, with a 4.3 percent margin.
($1 = 32.0150 roubles)
Reporting by Maria Kiselyova; editing by Jane Baird