M.Video PJSC, Russia's leader in e-commerce and retail of electronics and home appliances (Moscow Exchange: MVID), reports its IFRS-compliant operating and condensed consolidated financial statements for 12 months ended December 31, 2025.
Vladislav Bakalchuk, CEO of M.Video, says:
"2025 was M.Video's final year as a traditional retailer of home appliances and electronics. The company was expected to undergo radical changes, and the time has come to fundamentally transform business architecture to build a new sustainable business model. M.Video transitions to a multi-category platform relying on its retail infrastructure and partner ecosystem. We invest in IT and logistics and reduce costs incurred by loss-making stores. We no longer work to increase the number of retail locations but strive for true operational efficiency.
For our team, this transformation is a matter of principle, and its first results are visible today. By the end of Q1 2026, the marketplace revenue more than tripled year-over-year; by the end of April, it increased fivefold year-over-year. We are gaining momentum, and the new model is scaling continuously.
By adding higher-frequency categories, we have largely broadened our product range from approximately 200,000 SKUs at the end of last year to more than 450,000 today, and we expect this number to reach 1 million by the end of 2026. Partner sales model is getting popular with a combined share of agency sales and 3P sales nearing 35% on our marketplace; it will grow to over 45% by the end of the year and up to 70% by 2028.
We develop a new type of marketplace where sellers can operate both within our channels and on external platforms including major marketplaces, and through omnichannel retailer storefronts, social media, and websites in the future.
I am confident that the new business model will enable us to significantly increase GMV, improve efficiency, and achieve sustainable financial performance in near term without large-scale debt financing."
CONSUMER MARKET ANALYSIS
- In 2025, Russia's home appliances and electronics market, being the company's core market, was under macroeconomic pressure. A high key rate continued to reduce availability of credit, while bank deposits rose to a record 67 trillion roubles (as of January 1, 2026)[1] due to attractive deposit rates, prompting Russians to postpone major purchases.
- By the end of 2025, the home appliances and electronics market shrank 11.7% year-over-year in monetary terms, while in volume terms, the market remained virtually at the previous year's level (+2.4%). The average transaction value dropped 13.7%, reflecting a shift in demand toward more affordable price segments, partly due to changes in consumer behaviour strategies[2].
- The decline in monetary terms affected most key categories, including telecommunications (-17.4%), computer equipment (-15.7%), consumer electronics (-10.5%), and major home appliances (-6.4%).
- The structure of product supply exerted additional pressure on the market: the need to purchase equipment amid high financing costs led to rising expenses and lower business margins.
- Demand continued to shift toward online channels whose share reached 55% of the total market turnover[3]. Offline consultations, product testing, and after-sale service remain critical to customers, however.
COMPANY MAJOR TRANSFORMATION PLAN IN ACTION
- The company transforms its business model and builds Russia's first multi-category marketplace based on M.Video and supported by its own retail stores and a network of partner pickup points. The company develops a new marketplace type that allows sellers to trade on the platform both in M.Video's own online channels and other platforms, including major marketplaces, and in the future — through the storefronts of various omnichannel retailers, social media platforms, and websites, where item cards will be integrated via API.
- The company restructured its loan portfolio, resulting in the vast majority of loan obligations being extended for up to three years, and consequently, significantly improved terms for servicing existing loans.
- To reduce the need for banking and insurance instruments to secure equipment purchases (factoring, bank guarantees, insurance limits), the company managed to transition contracts with major suppliers of home appliances and electronics (both manufacturers and distributors) to an agency-based cooperation model, under which M.Video takes goods for sale but pays vendors only upon actual sales, without purchasing them in advance, and has also actively increased sales of its 3P product range on its own marketplace, which allows for a significant limitation of credit portfolio growth over the long term.
- Due to the high key interest rate, the Company optimized its investment programme and focused on internal efficiency; it closed hundreds of underperforming stores by the end of last year and opened 11 new ones with high sales potential. To broaden geographic reach and improve product availability for consumers, the company began delivering goods via SDEK to more than 4,500 cities in Russia in June 2025. In October 2025, M.Video partnered with Yandex Market to deliver its parcels to over 12,000 pickup points across 60 regions of Russia.
- The new structure of the company head office helped improve internal process efficiency and saved up to 25% of headquarters personnel costs.
KEY PERFORMANCE RESULTS IN 2025[4]
- The company total sales (GMV) was 418.1 billion roubles (including VAT)[5] in 2025 with revenue totalling 324.8 billion roubles being below last year's level. This trend is driven by a decline in consumer activity in home appliances and electronics amid tight monetary policy, growing key rate, rising costs of consumer credit, and store network optimization according to a new business model.
- The company total online sales amounted to 134.8 billion roubles (including VAT) or 32.2% of GMV with 10% of all orders coming from sellers on the company's own marketplace[6].
- Gross profit was 37.7 billion roubles with a gross margin of 11.6%. Tight margins were due to market conditions, decline in vendor procurement and rebates, high promotional activity amid weak demand, and overall reduction in average transaction value in home appliances and electronics market.
- Through consistent improvement in the business model efficiency, the company selling, general and administrative costs were 72.3 billion roubles dropping 8.2 billion roubles (-10.2%) year-over-year per IFRS 16 thanks to underperforming stores closure and staff cost reduction.
- EBITDA was −7.98 billion roubles per IFRS 16 due to decline in gross profit, which was partially offset by operating cost optimization.
- Net loss per IFRS 16 was 63.6 billion roubles caused by growing interest expenses, high rates, bigger loan portfolio, and home appliances and electronics market decline.
- The company developed its customer base to 80.9 million people by the end of 2025, with more than 5.5 million new customers. Total downloads of M.Video and Eldorado mobile apps reached 14.9 million, up 5% in 2025 versus 2024.
KEY EVENTS AFTER REPORTING DATE
- On April 17, 2026, MB FINANCE LLC (a subsidiary of M.Video PJSC) fully redeemed its Series 001P-04 exchange-traded bonds (ISIN: RU000A106540) in the amount of 7 billion roubles using its own operating funds, paying bondholders the face value and income for the last coupon period. Total payments on the issue amounted to 9.3 billion roubles, including coupon income of 2.3 billion roubles.
- At the end of Q1 2026, M.Video marketplace revenue totalled 7.45 billion roubles, 217% up versus Q1 2025. The total share of M.Video online sales grew from 32% to 43.1% year-over-year.
- In March 2026, 1,600 new partners joined the platform, which is 1.6 times more than in February and 2.6 times more than in January. Meanwhile, in Q1 2026, 3,200 new sellers joined the platform, which is 1.6 times more than in Q4 2025.
- M.Video launched RETAIL MEDIA, company-owned advertising platform for brands and sellers. The platform integrates online, offline, and CRM channels and will generate extra revenue by enabling sellers to promote their own products on the marketplace storefront.
- M.Combo, unique subscription launched in September 2024, counted over 430,000 users in April 2026, showing its high value and demand.
- The Company assortment grew over 450,000 SKU by April 2026, more than doubling the Q4 2025 number.
- In April 2026, M.Video announced the launch of a cross-border trade division to expand its marketplace product range through shipments from countries outside the former Soviet Union, including China, Hong Kong, and the UAE.
Link to photos:
https://disk.yandex.ru/i/gq54_CbXQQ5FRw
[1]Source: Bank of Russia analytical report "On the Development of the Banking Sector of the Russian Federation in December 2025."
[2]Source: ICMR (GfK Rus) Point of Sales Tracking Monthly, 12 months of 2025.
[3]Source: ICMR (GfK Rus) on the home appliances and electronics market, 12 months of 2025.
[4]Here and below, M.Video financial results are presented in accordance with IAS 16, unless otherwise specified.
[5]GMV (Gross Merchandise Value) includes purchases at retail stores (including 'click&collect' orders), paid and home-delivered online orders, as well as paid shipments from warehouses to legal entities. Purchases in stores and online orders may be made by individuals and legal entities. GMV includes sales of goods and services, which may be proprietary or agency-based. GMV includes VAT, net of discounts provided to customers, as well as net of returns made during the reporting period. GMV is not the Company's revenue.
[6]During the reporting period, the methodology for calculating the metric was revised: sales through the seller's mobile app were excluded from the online channel. It was this channel that had a significant impact on the final share of online sales. The updated methodology covers the Company's sales through its own online channels (websites and mobile apps of the "M.Video" and "Eldorado" brands), as well as sales on third-party marketplaces.