OR Group expects profit to return to 2019 level in 2 years

MOSCOW, Apr 6 (PRIME) -- Russia’s largest shoe retailer OR Group, previously known as Obuv Rossii, expects its net profit to return to the level of 2019, when it stood at 1.7 billion rubles as calculated under International Financial Reporting Standards (IFRS), in two years, CEO Anton Titov said in an online conference on Tuesday.

The 2019 results were one of the best for the company. “We received a record high net profit then, and our EBITDA (earnings before interest, taxes, depreciation, and amortization) was very high at 3.6 billion rubles. Our goal is to return to the figures of 2019 very soon, but it will not happen in a year,” he said.

“I think that we will not reach a profit figure of 1.7 billion rubles in the year of 2021, but we should be able to reach the indicators in two years, in 2021–2022. Our goal after that is to raise revenue, net profit, and EBITDA. Our stores and our business have the potential to achieve that.”

In 2020, the company’s net profit calculated under IFRS plummeted to 563 million rubles, with revenue falling by 21.4% to 10.772 billion rubles and EBITDA plunging by 35.8% to 2.302 billion rubles.

(76.6052 rubles – U.S. $1)

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