M.Video–Eldorado continued to grow steadily in 2020, increasing total sales by 15.4% year-on-year to RUB 504.8 billion (including VAT). This was primarily due to the successful scaling of our online business and development of our innovative OneRetail platform.

Total online sales surged by 108.6% to a record RUB 300.4 billion (including VAT), accounting for 59.5% of the Group’s GMV.

Smartphones are becoming an increasingly important shopping tool in Russia and worldwide, which also makes them a key tool in the battle for customers. In the reporting period, sales through the Group mobile platform soared 2.5 times to RUB 154 billion, or more than half of the Group’s total online sales. By the end of 2020, almost 8 million users had installed the M.Video and Eldorado applications, although this is only the beginning. We plan to further develop the customer mobile app under both brands, we will continue to introduce the mobile platform at all our stores, and we expect to increase the share of stores with a mobile online platform from 50% to 100% in the medium term.

Despite the economic challenges caused by the COVID-19 pandemic, M.Video–Eldorado delivered strong financial results. In 2020, the Group increased revenues by 14.4% year-on-year and adjusted EBITDA by 6.5% year-on-year, while the adjusted EBITDA margin remained high at 6.8%. Adjusted net profit, which M.Video–Eldorado plans to use when recommending dividends under the new policy, increased by 9.3% to RUB 12.2 billion.

As of 31 December 2020, the Group’s net debt amounted to RUB 40.5 billion, down 9.4% year-on-year, while the net debt / adjusted EBITDA ratio was 1.42x, down 0.25x.

These results indicate that M.Video–Eldorado continues to implement the digital transformation of its business successfully, based on a flexible business model and robust fulfillment infrastructure, is enhancing efficiency and remains financially stable.

Ekaterina Sokolova,


In the reporting period, the Group increased GMV by 15.4% year-on-year to RUB 504.8 billion. This was due to the leap in total online sales amid a higher average ticket on the mobile and web platforms, as well as a surge in the number of active identified customers with a higher average ticket and frequency of purchases.

In 2020, M.Video–Eldorado’s total online sales surged by 108.6% year-on- year to a record RUB 300.4 billion, or 59.5% of the Group’s total sales.

Growth in online sales and share of total online sales in the Group’s GMV in 2020

GMV FY2020 (RUB bln)
Total Online Sales 2020 (RUB bln)

Besides general market trends, the key driver of this was the further development of the Group’s mobile platform, which combines the customer app and consultant app in the store based on OneRetail technology. The mobile platform’s turnover soared by 152.3% year-on-year to RUB 154.1 billion, or 51.3% of total online sales. Sales through the web platform also surged, by 76.3% to RUB 146.3 billion.

In the reporting period, installations of the M.Video and Eldorado mobile apps reached almost 7.8 million, up 5.5 times, while the monthly active users (MAUs) of the customer mobile app exceeded 2 million. The number of average monthly visits to the Group’s websites increased by 28.9% year-on-year to 74.7 million.

The number of active identified customers reached 18.7 million, of which 41.6% were OneRetail customers: that is, those who made purchases through the customer app, consultant app or the Group’s web platform. The number of OneRetail customers soared by 79.5% year-on-year.

Identified active customers FY2020 (mln people)
Transactions FY2020 (mln tickets)
Traffic FY2020

In 2020, the average ticket for all categories of M.Video–Eldorado customers climbed by 16.2% year-on-year to RUB 8,980. The average ticket was RUB 11,732 for OneRetail customers and RUB 8,012 for others.

Strong online sales were supported by the following factors:

  • a reorientation of the marketing, operating and retail models to ensure that the customer journey runs through the mobile platform for a seamless shopping experience;
  • growth in traffic, the website conversion rate and the M.Video user mobile app; the launch of the Eldorado mobile app; and a simultaneous increase in the number of OneRetail customers, which in turn drove the volume of deliveries and self-pickup of online orders;
  • high availability of the most popular items due to the presence of up to 46% of stock at retail stores throughout the network; an increase in partner pickup points to more than 55,000 as of year-end; and the successful development of 60 last-mile partnerships;
  • an expanded range of home appliances and electronics due to more direct contracts with suppliers based on the vendor-catalogue model, the launch of a new line of private label goods, and the integration of the product range from the goods.ru marketplace based on the white label model.

In 2020, M.Video–Eldorado expanded its chain by 36 stores (including closures), including 10 M.Video and 26 Eldorado ones. As of December 31, 2020, the Group’s retail chain consisted of 1,074 stores.

Average ticket (RUB)
Number of stores
Floor space, ths sq. m.


Key financial indicators in 2020

  • REVENUES increased by 14.4% year-on-year to RUB 417,857 million
  • GROSS PROFIT grew by 6.9% year-on-year to RUB 97,275 million
  • SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A) EXCLUDING DEPRECIATION totalled RUB 74,682 million, or 17.9% as a percentage of revenues, down 1.2 p.p. y-o-y
  • ADJUSTED EBITDA rose by 6.5% y-o-y to RUB 28,474 million
  • ADJUSTED NET INCOME increased by 9.3% y-o-y to RUB 12,212 million
  • NET DEBT stood at RUB 40,483 million as of December 31, 2020 (down 9.4% y-o-y), and the Net debt / Adjusted EBITDA ratio was 1.42x (down 0.25x y-o-y)
  • In line with the new dividend policy, M.video–Eldorado plans to allocate no less than 100% of its Net profit, excluding the share of profit (loss) of associates and joint ventures under IAS 17, for Semi-Annual dividend payments.


In 2020, the Group’s revenue increased by 14.4% year-on-year to RUB 417,857 million, as online sales more than doubled (+108.6% year-on-year), the average ticket on the mobile and web platforms rose, and the number of active identified customers with a higher average ticket and frequency of purchases soared.

 IAS 17  IFRS 16  
RUB mln (excluding VAT)20202019yoy20202019yoy
Gross profit97,27591,015+6.9%97,33591,073+6.9%
Gross margin, %23.3%24.9%-1.6 p.p.23.3%24.9%-1.6 p.p.
Adjusted EBITDA28,47426,746+6.5%48,61846,617+4.3%
Adjusted EBITDA margin, %6.8%7.3%-0.5 p.p.11.6%12.8%-1.1 p.p.
Adjusted net profit12,21211,178+9.3%10,2879,089+13.2%
Adjusted net margin 2.9%3.1%-0.1 p.p.2.5%2.5%0.0 p.p.

Gross profit

Gross profit rose by 6.9% year-on-year to RUB 97,275 million, while the gross margin decreased by 1.6 p.p. year-on-year to 23.3%. This came as the Group sought to increase the share of spot purchases in an effort to keep sales growth high, improve inventory management and change the structure of market demand by increasing the share of digital categories and decreasing that of high-margin services and services involving employees’ direct contact with customers as COVID-19 restrictions were introduced.

Selling, general and administrative expenses (SG&A)

SG&A, excluding depreciation, amounted to RUB 74,682 million. As a percentage of revenues, it decreased by 1.2 p.p. year-on-year to 17.9% amid operational efficiency measures that affected staff, lease, advertising and marketing expenses.

Staff expenses edged down by 0.1 p.p. to 6.3% as a percentage of revenues in 2020, amid greater retail staff efficiency due to projects to universalize staff and optimize office operations as part of the transition to remote working, as well as the suspension of vacancies in the first half of the year.

Lease expenses fell by 0.9 p.p. to 5.2% as a percentage of revenues due to negotiations with the lessors of Group stores in the first half of 2020 to agree on new conditions to reduce fixed payments and tie leases to turnover at most stores.

Depreciation expenses rose to RUB 8,194 million, up from RUB 7,047 million in 2019, in connection with investments in the Group’s IT infrastructure.


In the reporting period, adjusted EBITDA rose by 6.5% year-on-year to RUB 28,474 million, while the adjusted EBITDA margin decreased by 0.5 p.p. to 6.8%. The higher EBITDA was due to the increase in revenues and effective management of selling, general and administrative expenses (excluding depreciation), which as a percentage of revenues decreased by 1.2 p.p. to 17.9%. Several of the abovementioned factors also reduced the EBITDA margin. However, despite all the extraordinary events of 2020, the EBITDA margin remained above the average of recent years and closer to the upper end of the 5%–7% range in the Group’s Strategy 2025.

Net profit

Adjusted net profit climbed by 9.3% year-on-year to RUB 12,212 million in the reporting period, compared with RUB 11,178 million in 2019, due to growth in revenues and the operational efficiency measures mentioned above.

Revenues, RUB bln
Adjusted EBITDA, RUB bln
Adjusted net profit RUB bln

Debt ratio

As of December 31, 2020, the Group’s total debt had decreased by RUB 1,481 million year-on-year to RUB 47,928 million. Cash and cash equivalents were up by RUB 2,707 million to RUB 7,445 million. Net debt had fallen by RUB 4,188 million to RUB 40,483 million. All debt obligations are denominated in rubles.

As a result, the net debt / adjusted EBITDA ratio was 1.42x as of December 31, 2020, down 0.25x year-on-year.

IAS 17–based gross debt / IAS 17–based EBITDA
IAS 17–based net debt / IAS 17–based EBITDA
49.4 --> 47.9
44.7 --> 40.5

Cash flow

Impact of IFRS 16 on financial statements

The introduction of IFRS 16, effective from January 1, 2019, affected the Group’s EBITDA, operating profit and net income in 2020.

Effect on gross profit

The disparity in gross profit in accordance with IFRS 16 is negligible and can be attributed to the difference in accounting for leased vehicles. In 2020, gross profit was RUB 97,335 million under IFRS 16, compared with RUB 97,275 million under IAS 17. The gross margin was 23.3% based on both standards.

Effect on EBITDA

EBITDA was significantly higher under IFRS 16, since the majority of lease expenses previously recognized in selling, general and administrative expenses are recognized under IFRS 16 as debt on the Group’s balance sheet, as well as in interest expense on loans in the income statement.

In 2020, lease and utilities expenses were down by RUB 18,150 million under IFRS 16. Adjusted EBITDA was RUB 48,618 million under IFRS 16, compared with RUB 28,474 million under IAS 17. The adjusted EBITDA margin was 11.6% under IFRS 16, 4.8 p.p. higher than the 6.8% under IAS 17.

Effect on net profit

In 2020, net profit was impacted by additional expenses of RUB 15,900 million on the amortization of right-of-use assets under IFRS 16. The effect of these additional amortization expenses was fully offset by the deduction of long-term lease expenses from operating expenses, as mentioned above.

In the reporting period, financial expenses increased by RUB 6,464 million under IFRS 16 due to additional interest expenses on lease liabilities. The introduction of IFRS 16 also resulted in less income tax expenses due to lower pretax profit.

As a result, in 2020, the Group’s adjusted net profit was RUB 10,287 million under IFRS 16, compared with RUB 12,212 million under IAS 17. The adjusted net margin was 2.5% under IFRS 16, down slightly from the 2.9% under IAS 17.

Effect on the cash flow statement

The introduction of IFRS 16 does not affect the net change in cash in the cash flow statement. However, it does affect the presentation of the cash flow statement, as the principal lease payments are classified as financing activities, prepayments as investing activities and interest payments as interest paid in operating activities.

RUB 48,618 / 28,474 mln
RUB 10,287 / 12,212mln