ANNUAL GENERAL SHAREHOLDERS MEETING of the PJSC MELON FASHION GROUP
On June10 2015, there was held the AGSM of Melon Fashion Group, where shareholders have approved the 2014 Annual Report and Financial Statements of the Group.
The net profit of Melon Fashion Group in 2014 (the IFRS report) is quoted at 44.4 million rubles. The financial result was influenced positively by the fair value of forward contracts (+1.1 billion rubles). It is noteworthy that MFG has been drawing its financial statements in accordance with IFRS since 2009.
In conformity with the Russian Law, MFG publishes also its financial reporting made in accordance with the Russian GAAP which does not consider profit generated by forward contracts. Another factor is translation differences which produce their negative impact when Balance Sheet lines presented in foreign currency are converted into Russian rubles for the reporting purposes. The third one is devaluation of the national currency affecting the Group’s gross profit. All these reasons account for the loss of 735 million rubles quoted by the financial report made in accordance with the Russian standards.
“In spite of the challenging economic situation in 2014, we managed to reach satisfactory financial results and show a significant growth, comments Kestutis Sasnauskas, MFG chief executive officer”. Macroeconomic situation makes us concentrate on business efficiency, which leaves a big room for improvement. In this sense, the crisis will become a productive period for the Group. That’s why we look into the future with big optimism”.
The shareholders have elected the MFG Board of Directors whose composition remained the same as in the previous year:
- Kestutis Sasnauskas, CEO of PJSC Melon Fashion Group, Russia
- David Kellermann, I.G.M. Manufactrust Limited, Cyprus
- Christel Kinning, chairperson of Zound industries International AB, Sweden
- Lennart Dalgren, independent consultant, former CEO of the Russian IKEA, Sweden
- Claes Heurlin, founder of Claes Heurlin AB,Sweden
- Mikhail Urzhumtsev, president of PJSC Melon Fashion Group, Russia
- Mathias Pedersen, CFO of East Capital Explorer AB, Sweden
David Kellermann was elected Chairman of the Board of Directors
The PJSC Melon Fashion Group operates three fashion brands: befree, ZARINA and LOVE REPUBLIC. The Company runs full cycle of the fashion business from design through production and buying to distribution, sales and marketing of women’s and men’s clothing, shoes and accessories.
As of 1 June 2015, PJSC Melon Fashion Group operates 652 stores: 619 stores (507 own stores and 112 franchisees) are in Russia, 20 stores work in Ukraine, 7 stores are in Kazakhstan, 4 stores are in Belarus,1 store in Georgia and 1 store in Armenia.