23rd Apr 2013 07:00
OJSC MAGNIT - 1Q 2013 ResultsOJSC MAGNIT - 1Q 2013 Results
PR Newswire
London, April 23
OJSC "Magnit" announces 1Q 2013 results
Krasnodar, April 23, 2013: OJSC "Magnit", Russia's largest retailer (the"Company", MICEX and LSE: MGNT), is pleased to announce its unaudited 1Q 2013financial results prepared in accordance with IFRS.
During 1Q 2013 the Company added (net) 191 stores (163 convenience stores, 6hypermarkets, 1 "Magnit Family" and 21 cosmetics stores) and increased itsselling space by 29.88% in comparison to 1Q 2012 from 2,024.90 thousand sq. m.to 2,629.88 thousand sq. m. The total store base as of March 31, 2013 reached7,075 stores (6,209 convenience stores, 132 hypermarkets, 21 "Magnit Family"and 713 cosmetics stores).
Revenue in rubles increased by 30.43% YoY from 100,617.96 million RUR in 1Q2012 to 131,239.91 million RUR in 1Q 2013. The top line growth was due to anincrease in selling space as well as to a 4.83% increase of like-for-like sales(excl. VAT). Revenue growth in dollar terms amounted to 29.79%: from US$3,324.65 million to US$ 4,315.09 million.
Gross margin grew from 25.28% in 1Q 2012 to 26.72% in 1Q 2013. Gross profit inrubles increased by 37.86% from 25,438.21 million RUR (US$ 840.54 million) to35,070.35 million RUR (US$ 1,153.09 million).
EBITDA increased by 25.78% from 9,710.48 million RUR (US$ 320.86 million) in 1Q2012 to 12,214.09 million RUR (US$ 401.59 million) in 1Q 2013. EBITDA margin in1Q 2013 amounted to 9.31%.
1Q 2013 net income increased by 28.99% and amounted to 6,156.16 million RUR(US$ 202.41 million) vs. 4,772.44 million RUR (US$ 157.69 million) in 1Q 2012.
As has been noted previously, the month of February 2012 occurred during a"leap year" and thus, there were 29 days (i.e. an extra day). February 2013, onthe other hand, occurred during a "normal year" in which there were only 28days.
This very same "leap year" effect/adjustment should also be calculated when onemakes the comparison between 1Q 2012 numbers vs. 1Q 2013 numbers.
Therefore, in order to fairly compare the 1Q 2012 results to the 1Q 2011results an amount of 1.47% should be subtracted for the 1Q 2012, which wouldthen equal 32.60%. To compare the 1Q 2013 results with the 1Q 2012 resultscorrectly, an amount of 1.45% should be added, which would then equal 31.88%.
Sergey Galitskiy, the Company's CEO, provided the following comments on thepublished results:
"Last year was the strongest year in the Company's history. However, comparing1Q 2013 results y-o-y we see that most of the changes are due to foreignexchange difference, which speaks for the sustainability of the Company'soperating efficiency". 1Q 2013 Key Operating Results 1Q 2013 1Q 2012 Growth Rate Number of opened stores, NET 191 157 n/a convenience stores 163 98 n/a hypermarkets 6 1 n/a magnit family 1 2 n/a cosmetics stores 21 56 n/a Total number of stores 7,075 5,466 n/a convenience stores 6,209 5,104 n/a hypermarkets 132 91 n/a magnit family 21 5 n/a cosmetics stores 713 266 n/a Selling space, thousand sq. m. 2,629.88 2,024.90 29.88% convenience stores 2,030.20 1,673.48 21.32% hypermarkets 407.46 282.10 44.44% magnit family 25.81 6.20 n/a cosmetics stores 166.41 63.12 n/a Number of customers, million 563.01 462.04 21.85% convenience stores 505.46 427.82 18.15% hypermarkets 42.13 29.39 43.32% magnit family 5.58 0.87 n/a cosmetics stores 9.85 3.96 n/a LFL results LFL growth 1Q 2013 - 1Q 2012 Convenience Hypermarkets Total stores Average ticket (excluding 5.31% 3.19% 5.42%VAT), RUR Traffic (0.80)% 3.77% (0.55)% Revenue, RUR 4.46% 7.08% 4.83% 1Q 2013 Key Financial Results 1Q 2013 1Q 2012 Growth Rate Net sales, mn RUR 131,239.91 100,617.96 30.43% convenience stores 104,145.23 83,658.79 24.49% hypermarkets 22,670.89 15,680.27 44.58% Magnit Family 1,935.79 301.57 n/a cosmetics stores 2,465.97 952.80 158.81% wholesale 22.04 24.54 (10.17%) Net sales, mn US$ 4,315.09 3,324.65 29.79% convenience stores 3,424.23 2,764.28 23.87% hypermarkets 745.40 518.11 43.87% Magnit Family 63.65 9.96 n/a cosmetics stores 81.08 31.48 157.54% wholesale 0.72 0.81 (10.61%) Gross profit, mn RUR 35,070.35 25,438.21 37.86% Gross profit, mn US$ 1,153.09 840.54 37.18% Gross margin, % 26.72% 25.28% n/a EBITDAR, mn RUR 15,541.62 11,937.34 30.19% EBITDAR, mn US$ 511.00 394.44 29.55% EBITDAR margin, % 11.84% 11.86% n/a EBITDA, mn RUR 12,214.09 9,710.48 25.78% EBITDA, mn US$ 401.59 320.86 25.16% EBITDA margin, % 9.31% 9.65% n/a EBIT, mn RUR 8,969.84 7,134.03 25.73% EBIT, mn US$ 294.92 235.72 25.11% EBIT margin, % 6.83% 7.09% n/a Net profit, mn RUR 6,156.16 4,772.44 28.99% Net profit, mn US$ 202.41 157.69 28.36% Net profit margin, % 4.69% 4.74% n/aNote: net revenue in US$ terms is calculated using the daily exchange rate.
For further information, please contact:
Timothy Post Director, Investor Relations e-mail: [email protected] Tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 7600 Mob.: +7 (961) 511-76-78 Direct line for investors only: +7 (861) 277-45-62 Dina Svishcheva Deputy Director, 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) 277-45-62Company description:
Headquartered in the southern Russian city of Krasnodar, Magnit (LSE and MICEX:MGNT, S&P: "BB") is the holding company for a group of entities that operate inthe retail trade under the "Magnit" brand. The chain of "Magnit" stores is thelargest food retail network in Russia. As of March 31, 2013 the chain consistedof 6,209 convenience stores, 132 hypermarkets, 21 "Magnit Family" stores and713 cosmetics stores (drogerie) in 1,647 cities and towns throughout theRussian Federation.
Approximately two-thirds of the Magnit's stores are located in cities with apopulation of less than 500,000 inhabitants. Most of its stores are located inthe Southern, North-Caucasian, Central and Volga regions. The Company alsooperates stores in the North-Western, Urals and Siberian regions.
As of March 31, 2013 Magnit operated an in-house logistics system consisting of18 distribution centers, employing automated stock replenishment systems and afleet of 4,448 vehicles.
In accordance with the audited IFRS consolidated financial statements for 2012,Magnit recorded consolidated revenues of approximately $14,430 million USD anda consolidated EBITDA of $1,524 million USD.
According to management accounts
Based on the average exchange rate for 1Q 2013 - 30.4142 RUR per 1 USD, 1Q 2012- 30.2642 RUR per 1 USD
Based on 4,087 convenience stores which were opened by July 1, 2011, and 60hypermarkets which were opened by May 1, 2011, i.e. based on the result of theconvenience stores that had been operating for not less than six months andhypermarkets that had been operating for not less than eight months and haveachieved a mature level of sales
Related Shares:
MGNT.L