AVentures Group Announces 2006 Financial Results

AVentures Group is one of Ukraine’s biggest wholesale and retail distributors of consumer electronics. According to the company’s President Volodymyr Kolodyuk, net sales in 2006 amounted to USD 733 mln and the EBITDA was USD 10 mln, a margin of 1.4%. In 2006, AVentures issued bonds for USD 10 mln to finance the development of its City.com retail chain. At a press conference this morning, AVentures said it plans to invest at least the same amount this year to increase the number of City.com consumer electronics hypermarkets, expanding its presence in cities with a population of more than 1 mln and is considering moving into other less populated regions. Kolodyuk said overall investments into retail development are expected to be USD 33 mln in 2006. The company expects to have a shift in their sales structure to the increased share of retail sales in 2007, with a balance of wholesale/retail at about 60/40. The company said it is not planning an IPO before 2009.