On the eve, almost all Azerbaijani media extended information to the Central Bank that LLC Azərbaycan Supermarket began accommodation on the Baku Body Stock Exchange with a total nominal value of 40 million manat. Unfortunately, to clarify why Azərbaycan Supermarket, who owns the brand Bravo, it took, we failed.
As you know, Bravo supermarkets are popular with the inhabitants of the country, trading in them is a boyko, and the trend towards capitalization of the prosperous business in Azerbaijan will not call a strong …
As follows from the Prospectus of Securities Emission, shareholders of the Company have taken such a decision back at a meeting of September 2, 2021. The term of conversion of bonds is three years, their coupon returns is 10.5 percent per annum, which will be paid to the owners of bonds once a quarter. In total, 40 thousand bonds will be released with a par value of 1,000 manat each.
What is the company pursues the company and what will go 40 million depositors manats? As the official press release is evidenced, Azerbaycan Supermarket intends to send funds raised from the placement of bonds to finance new and accelerating the implementation of already existing projects.
I would like to believe that everything is so there is, but several alarms published on Fed.az information about the financial situation of this company, which, judging by the calculations of the Fed.az site, looks very problematic.
In particular, it is noted that Azərbaycan Supermarket, which owns the brand Bravo, completes the last three years with significant losses. In general, during this time, the company’s revenues rose more than twice. If in 2018, her revenue was 232.3 million manat, in 2019 it increased to 401.7 million, and in 2020 to 513 million manat.
Nevertheless, all these three years, Azərbaycan Supermarket completes with losses, and considerable: in 2018 they accounted for 43.6 million manat, in 2019 – 41.8 million, in 2020 – about 47 million manat. During the same period, the company’s debts increased. If in 2018 a package of obligations Azərbaycan Supermarket was 151.4 million manat, then in 2019 it increased to 272.9 million, in 2020 – up to 379.3 million manat.
At the same time, the assets of BRAVO supermarkets have almost doubled. At the end of 2018, they amounted to 241.7 million manat, in 2019 – 354.6 million manat, and in 2020 – 465.5 million manat. It is characteristic that this dynamics remains today: for the period from the beginning of the current year, BRAVO assets increased by about 26%, and the volume of sales is 25%. In other words, there is almost double growth of working capital.
In general, the decision of the shareholders on the company’s capitalization deserves approval. Although about the true objectives of Azerbaycan Supermarket, which released a 40 million bond package, one can only guess.
If official information is true and the company plans to send the funds raised to develop the Bravo supermarket network, then from a marketing point of view is good news.
However, on the other hand, information about the presence of multimillion dollars from Azerbaycan Supermarket, causes a natural question: is it not going to use funds raised due to bond issuing to repay their debts?
There is reason to believe that in the near future Azerbaycan Supermarket will make complete clarity in this question.