At their extraordinary meeting on August 12, the shareholders of JSC Detsky mir made a decision to restructure the company through the spin-off of CJSC DMF-Invest, the company informed.
The shareholders decided to set up the legal entity CJSC DMF-Invest. Simultaneously, CJSC DMF-Invest will be merged into CJSC DM-Finance.
The company unbundled will assume some of the property, rights and obligations of Detsky Mir according to the dividing balance sheet / transfer act.
250,000 common shares of JSC Detsky mir with a face value of RUB 0.0004 each will be converted into one common share of the new company with a face value of RUB 100 each; also, 739 million common shares in Detsky mir will be converted into 2,956 common shares in DMF-Invest. Besides, DMF-Invest shares will be converted into DM-Finance shares.
Detsky Mir Group is the largest Russian seller of children's goods. Today, the group unites national retail chain Detsky Mir, luxury-center Yakimanka Children's Gallery and ELC (Early Learning Centre) store chain. As of June 30, 2014, the chain comprises 232 stores in Russia and Kazakhstan, ELC has 32 stores in Russia. The total floor space of the group's retail outlets is 328,000 square meters. The major shareholder of JSC Detsky mir is Sistema JSFC.
US GAAP net profit of Detsky Mir Group for 2013 grew 2.46-fold to $36.2 million from $14.7 million in 2012. Revenue increased by 27.2% to $1.13 billion from $888.4 million, GP by 23.8% to $436.7 million from $352.8 million. Adjusted EBITDA grew by 61.7% to $91.5 million from $56.6 million. Net debt as of December 31, 2013 was $154.7 million.
According to the DataCapital information retrieval system, RAS net profit of JSC Detsky mir for 2013 grew by 172.2% year-on-year to RUB 1.3 billion from RUB 482.3 million. Revenue went up 31.8% to RUB 38.382 billion from RUB 29.121 billion, OIBDA by 97.3% to RUB 3.298 billion from RUB 1.671 billion.
The company's net loss for Q1 2014 was RUB 435 million against a loss of RUB 595.1 million in the first quarter of 2013. Revenue grew by 35% to RUB 9.141 billion from RUB 6.76 billion.