Ulmart released it 3rd quarter results reporting growth of 25.6 % YOY. Sales for the quarter reached $414 million with positive contributions to revenue coming from two recent acquisitions: No Limit Electronics (NLE)-one of Russia's largest distributors of satellite dishes, antennas and related items; and, Dream Industries (DI), a leading seller of online music and books. 9-month YOY results show revenue growth of 34% putting the company over the $1 billion threshold.
NLE's 3rd quarter sales, now being supported by the Ulmart's online platform and network of 30 fulfillment centers and 416 pick-up points, also received a strong boost to their 3rd quarter results. DI has also seen similar sales increases since linking its offerings to the Ulmart platform when it joined in June.
Ulmart's successfully developed online catalogue, was recently expanded to 90,000 SKU–an increase of 63% YOY-with most of the expansion coming in the booming categories of auto, kid's stuff, home and DIY and now content. These categories, making up only 3% of Ulmart sales in 2013, now near 12% and explain in part why Ulmart's overall margins are increasing–up 65% YOY. The company's electronic catalogue is one of the most popular in Russia showing inventory turnover of 34 days hence freeing the company from supplier debt.
The success of an internal program called "Real Growth in a Positive Way," launched in January with a goal to grow margins while decreasing expenses is successful beyond the company's expectations-with redundancies eliminated, an internal green project and extensive trainings employee efficiency has increased significantly.
The Ulmart model stressing customer convenience via a predictable and easy method of product purchase and pick-up (24/7, 364 days a year) continues expansion as three more urban fulfillment centers soon come on line and will be supported by 23 additional pick-up points.
"The model proves our case for disruptive leadership…an item is introduced into our platform, sales grow exponentially…look at our success in areas like diapers, tires and now satellite dishes and antennas…we are a true general merchandiser," commented Oleg Pchelnikov, Umart's Commercial Director.
Traffic to the site is also up by 40% and now there are nearly 15 million registered users. Each new category expansion and acquisition the company makes, registered users and traffic overall increase-DI and NLE increased users 8% and 6%, respectively.
