26th Aug 2009 07:00
Press-release
Krasnodar
August 26, 2009
OJSC "Magnit" announces unaudited 1H 2009 operating and financial results
Krasnodar, August 26, 2009: OJSC "Magnit" (the "Company"; RTS, MICEX and LSE: MGNT) is pleased to release its 1H 2009 unaudited operating and financial results prepared in accordance with IFRS.
During 1H 2009 the Company added 226 stores (net) and increased its selling space by 26.7% in comparison to 1H 2008 from 714.6 thousand sq. m. to 905.2 thousand sq. m.
Revenue in rubles increased by 33.0% YoY from 59,139.2 million RUR in 1H 2008 to 78,629.3 million RUR in 1H 2009. The top line growth was due to an increase in selling space as well as to a 10.2% increase of like-for-like sales (excl. VAT). Revenue in dollar terms decreased by 3.7% from US$ 2,469.9 million to US$ 2,377.8 million due to significant change of US$ exchange rate1.
Gross margin improved from 20.9% in 1H 2008 to 23.3% in 1H 2009 primarily due to the better purchasing terms as well as to an in-house logistics improvement. Gross profit in rubles increased by 48.5% from 12,332.7 million RUR (US$ 515.1 million) to 18,318.8 million RUR (US$ 554.0 million).
EBITDA increased by 96.5% from 3,772.7 million RUR (US$ 157.6 million) in 1H 2008 to 7,414.8 million RUR (US$ 224.2 million) in 1H 2009.
1H 2009 net income increased by 147.0% and amounted to 3,899.5 million RUR (US$ 117.9 million) vs. 1,578.5 million RUR (US$ 65.9 million) in 1H 2008.
Sergey Galitsky, the Company's CEO, provided the following comments on the published 1H 2009 results:
"Positive 1H 2009 results confirm that we have chosen our strategic direction correctly. The Company has a small amount of debt, at the same time reinvesting almost all profits in business and focusing on a strict costs control. We are targeting further optimization of all business processes shall become the result of our work.
Our plans for the nearest future are traditional: we will continue to invest in our business going forward. We are not going to stop or slow down the rate of our business growth. In a mid-term perspective we will continue to focus on developing our logistics system: we plan to build additional distribution centers and to increase the owned vehicles' fleet. We will also continue rapid construction of convenience stores and hypermarkets".
1 Based on the average exchange rate for 1H 2009 of 33.0679 RUR per 1 US$, 1H 2008 – 23.9440 RUR per 1 US$. 1H 2009 Key Operating and Financial Highlights:
|
1H 2009 |
1H 2008 |
Growth rate |
||
|
Stores opened, NET |
226 |
124 |
n/a |
|
|
Total number of stores |
2,808 |
2,321 |
n/a |
|
|
Selling space, sq. m. |
905,215 |
714,604 |
26.7% |
|
|
Number of customers, mn |
475.1 |
409.7 |
16.0% |
|
|
Net sales, mn RUR |
78,629.3 |
59,139.2 |
33.0% |
|
|
Net sales, mn US$ |
2,377.8 |
2,469.9 |
(3.7)% |
|
|
Gross profit, mn RUR |
18,318.8 |
12,332.7 |
48.5% |
|
|
Gross profit, mn US$ |
554.0 |
515.1 |
7.6% |
|
|
Gross margin, % |
23.3% |
20.9% |
n/a |
|
|
EBITDAR, mn RUR |
9,270.0 |
5,407.7 |
71.4% |
|
|
EBITDAR, mn US$ |
280.3 |
225.8 |
24.1% |
|
|
EBITDAR margin, % |
11.8% |
9.1% |
n/a |
|
|
EBITDA, mn RUR |
7,414.8 |
3,772.7 |
96.5% |
|
|
EBITDA, mn US$ |
224.2 |
157.6 |
42.3% |
|
|
EBITDA margin, % |
9.4% |
6.4% |
n/a |
|
|
EBIT, mn RUR |
5,907.7 |
2,820.8 |
109.4% |
|
|
EBIT, mn US$ |
178.7 |
117.8 |
51.6% |
|
|
EBIT margin, % |
7.5% |
4.8% |
n/a |
|
|
Net profit, mn RUR |
3,899.5 |
1,578.5 |
147.0% |
|
|
Net profit, mn US$ |
117.9 |
65.9 |
78.9% |
|
|
Net profit margin, % |
5.0% |
2.7% |
n/a |
|
|
LFL growth 1H 2009 to 1H 2008 2 |
||||
|
Number of tickets |
(0.83)% |
|||
|
Average ticket (excl. VAT), RUR |
11.08% |
|||
|
Revenue, RUR |
10.16% |
|||
Note: net revenue in US$ terms is calculated using the daily exchange rate. 2 Based on 1,815 stores which were opened by July 01, 2007, i.e. based on the result of the stores that had been operating for not less than six months and have achieved a mature level of sales
Please follow the link below to view 1H 2009 financial report in full: http://www.magnit-info.ru/lib_files/862_2a121.pdf For further information, please contact:
|
Oleg Goncharov |
Director, Investor Relations e-mail: [email protected] Tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5100 Mob.: +7 (903) 411-40-35 Direct line for investors only: +7 (861) 277-45-62 |
|
Dina Chistyak |
Manager, Investor Relations e-mail: [email protected] Tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5101 Mob.: +7-961-511-02-02 Direct line for investors only: +7 (861) 277-45-62 |
Company description:
Based in Krasnodar, in the Southern region of Russia, Open Joint Stock Company "Magnit" is the holding company for a group of entities that operate in the retail trade under the "Magnit" brand. The chain of "Magnit" stores is one of the leading food retail networks in Russia. As of June 30, 2009 the chain consisted of 2,790 convenience stores and 18 hypermarkets in 922 locations in the Russian Federation.
Approximately two-thirds of the Company's stores are located in cities with population of less than 500,000 inhabitants. Most of its stores are located in the Southern, Central and Volga regions. The Company also operates stores in the North-Western and Urals regions.
As of June 30, 2009 the Company operated an in-house logistics system consisting of 9 distribution centers, employing automated stock replenishment systems and a fleet of 1,345 vehicles.
In accordance with the unaudited IFRS consolidated financial statements for 1H 2009, the Company posted consolidated revenue of approximately US$2,378 million and consolidated EBITDA of around US$224 million.
Related Shares:
MGNT.L