26th Aug 2008 07:00
Press-release
Krasnodar
August 26, 2008
OJSC "Magnit" announces reviewed 1H2008 operating and financial results
KRASNODAR, August 26, 2008: OJSC «Magnit» (the "Company"; RTS, MICEX and LSE: MGNT) is pleased to release its reviewed 1H2008 operating and financial results prepared in accordance with IFRS.
During 1H2008 the Company added 124 stores (118 convenience stores and 6 hypermarkets) and increased its selling space by 25.2% relative to 1H2007 from 570.7 thousand sq. m. to 714.6 thousand sq. m. at the end of 1H2008.
Net revenue of the Company increased by 50.8% YoY from 1,638.2 million US$ in 1H07 to 2,469.9 million US$ in 1H08. Net revenue increase was due to increase in selling space as well as 28.97% increase of like-for-like sales (excl. VAT).
Gross margin improved from 18.8% in 1H07 to 20.9% in 1H08 primarily due to better purchasing terms as well as an in-house logistics function improvement.
EBITDA increased by 90.2% from 82.8 million US$ in 1H07 to 157.6 million US$ in 1H08.
Net income for 1H08 increased by 75.3% and amounted to 65.9 million US$ vs. 37.6 million US$ in 1H08.
Sergey Galitskiy, the Company's CEO, provided the following comments on the published 1H2008 results:
"90% EBITDA growth is a good result. But this is not only due to the Company's performance in the second quarter of 2008 - we are facing the effect of the set of measures realized during the year. It is our primary task to work on the net cost of our business, and the achieved results encourage and assure us of the right strategy we follow".
1H2008 Key Operating and Financial Highlights:
|
|
1H 2008 |
1H 2007 |
Growth rate |
|
|
Stores opened, NET |
124 |
116 |
n/a |
|
|
Total number of stores |
2,321 |
2,009 |
n/a |
|
|
Selling space, sq. m. |
714,604 |
570,701 |
25.2% |
|
|
Number of customers, mn |
409.7 |
370.1 |
10.7% |
|
|
Net sales, mn RUR |
59,139.2 |
42,729.5 |
38.4% |
|
|
Net sales, mn US$ |
2,469.9 |
1,638.2 |
50.8% |
|
|
Gross profit, mn RUR |
12,332.6 |
8,044.0 |
53.3% |
|
|
Gross profit, mn US$ |
515.1 |
308.4 |
67.0% |
|
|
Gross margin, % |
20.9% |
18.8% |
n/a |
|
|
EBITDAR*, mn RUR |
5,407.7 |
3,369.0 |
60.5% |
|
|
EBITDAR*, mn US$ |
225.8 |
129.2 |
74.9% |
|
|
EBITDAR margin*, % |
9.1% |
7.9% |
n/a |
|
|
EBITDA, mn RUR |
3,772.7 |
2,160.5 |
74.6% |
|
|
EBITDA, mn US$ |
157.6 |
82.8 |
90.2% |
|
|
EBITDA margin, % |
6.4% |
5,1% |
n/a |
|
|
EBIT, mn RUR |
2,820.8 |
1,534.5 |
83.8% |
|
|
EBIT, mn US$ |
117.8 |
58.8 |
100.2% |
|
|
EBIT margin, % |
4,8% |
3,6% |
n/a |
|
|
Net profit, mn RUR |
1,578.5 |
980.7 |
61.0% |
|
|
Net profit, mn US$ |
65.9 |
37.6 |
75.3% |
|
|
Net profit margin, % |
2.7% |
2.3% |
n/a |
|
|
LFL growth 1H08 to 1H07** |
|
|
|
|
|
|
Number of tickets |
(3.33%) |
|
|
|
|
Average ticket (excl. VAT), RUR |
22.47% |
|
|
|
|
Average ticket (excl. VAT), USD |
33.41% |
|
|
|
|
Revenue, RUR |
18.38% |
|
|
|
|
Revenue, USD |
28.97% |
|
|
Note: net revenue in US$ terms is calculated using the daily exchange rate.
Please follow the link below to view 1H2008 financial report in full:
http://www.magnit-info.ru/lib_files/507_92974.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 a holding company for a group of entities that operate in the retail trade under the "Magnit" name. The chain of "Magnit" stores is one of the leading operators in the Russian food retail market. As of June 30, 2008 the chain consisted of 2,312 convenience stores and 9 hypermarkets in more than 760 locations in the Russian Federation.
Approximately two-thirds of the Company's stores are located in cities with a population of less than 500 thousand. Most of its stores are located within the Southern, Central and Volga regions. The Company also operates stores in the North-Western and Urals regions.
As of June 30, 2008 the Company operated an in-house logistics system consisting of 8 distribution centers, employing automated stock replenishment systems and a fleet of 1,030 vehicles.
In accordance with the audited IFRS consolidated financial statements for 1H2008, the Company posted consolidated revenues of approximately US$ 2,470 million and a consolidated EBITDA of around US$ 158 million.
Related Shares:
MGNT.L