Melon Fashion Group, one of the leaders of Russian fashion retail, the owner of ZARINA, Befree, LOVE REPUBLIC and sela, has published its 2022 IFRS Annual report.
2022 key indicators:
• Melon Fashion Group revenues have increased by 23% and reached 46 billion roubles.
• EBITDA has grown by 69% and reached 14.6 billion roubles.
• The Group’s net profit has more than doubled and reached 7.8 billion roubles.
• The Company has opened 103 new stores and relocated 33 stores to bigger trade spaces. By the end of 2022, Melon Fashion Group had operated in 174 cities and five countries. ZARINA, Befree, LOVE REPUBLIC and sela stores amounted to 867.
• The aggregate trade space of Melon Fashion Group has increase by 17% and reached 266.5 thousand square meters.
•The Company has dealt with 282 suppliers from 10 countries.
Mikhail Urzhumtsev, Melon Fashion Group CEO:
"Last year became crucial for fashion industry and for Melon Fashion Group. In a twinkle of an eye we had to revise all our previous plans and intentions. The market showed a peculiar situation when some brands had left and some stayed. Sanctions, broken delivery chains, uncertainty and informational noise created a new unfamiliar fashion retail field. Having revised our strategic plans and approaches, we decided to act.
The key factors that made a great impact on the Company’s results were unity of the team and the ability to promptly react to challenges. In summer we made a decision on scaling the business doubling the concepts of all brands: ZARINA has increased its shop format up to 600 – 1 000 sq m, Befree up to 1 000 – 2 500 sq m, LOVE REPUBLIC up to 500 – 1 000 sq m, sela up to 700 – 1 200 sq m. It took a little longer than three months to put the ideas to practice, while the first openings of big-format stores took place as early as in November.
Opening 136 new and relocated stores, the Company has grown its retail chain up to 867 stores in Russia, Belarus, Kazakhstan, Armenia and Kirgizia. The Company continued to develop the online channel and partnership with market places. Off-line and online distribution channels shared the sales 68% and 32% accordingly.
In spite of high economic volatility and decrease of traffic in shopping malls caused by the exit of international brands, financial indicators of the Company have demonstrated positive dynamics. Melon Fashion Group’s revenues have grown 23% reaching 46 billion roubles. The main indicator of efficiency – EBITDA – went on growing steadily and reached 14.6 billions. The net profit demonstrating 121% growth against last year proves that, even in rigid circumstances the Melon Fashion Group’s business model is efficient.
Having shaped our ESG strategy in 2022, we decided that the Sustainability report should include now all initiatives of the brands and the company on the whole in the field of social corporate responsibility that used to be published in the Annual report before.
We have gone through a lot of different things – but the optimism, former experience and shareholders’ support have always enhanced our self-confidence and belief in the Company’s own strength. 2022 has taught us immensely. We look eagerly forward to 2023, intending to increase our market share, open many big and beautiful stores and surprise both the market and customers with our innovative solutions".