29th Oct 2008 07:00
Press-release
Krasnodar
October 29, 2008
OJSC "Magnit" announces unaudited 9M 2008 operating and financial results
KRASNODAR, October 29, 2008: OJSC «Magnit» (the "Company"; RTS, MICEX and LSE: MGNT) is pleased to release its unaudited 9M 2008 operating and financial results prepared in accordance with IFRS.
During 9M2008 the Company added 208 stores (200 convenience stores and 8 hypermarkets) and increased its selling space by 27.1% relative to 9M 2007 from 593.1 thousand sq. m. to 753.6 thousand sq. m. at the end of 9M 2008.
Net revenue of the Company increased by 50.9% YoY from 2,572.8 million US$ in 9M07 to 3,881.5 million US$ in 9M08. Net revenue increase was due to increase in selling space as well as 27.76% increase of like-for-like sales (excl. VAT).
Gross margin improved from 19.3% in 9M07 to 21.2% in 9M08 primarily due to better purchasing terms as well as an in-house logistics function improvement.
EBITDA increased by 97.1% from 134.6 million US$ in 9M07 to 265.3 million US$ in 9M08.
Net income for 9M08 increased by 98.0% and amounted to 118.9 million US$ vs. 60.0 million US$ in 9M08.
We would also like to inform you that within realization of the government program to support Russian retailers VTB and the operational сompany of the Group reached an agreement on credit lines in the total amount of 2,500 bn rub, 0.3 bn rub out of which are already received by the Company.
Sergey Galitskiy, the Company's CEO, provided the following comments on the published 9M2008 results:
"Crisis is a good time to look at one's business from all sides. Usually at such times they talk about costs only. We have been working with our expenses for many years and now it pays off. In terms of liquidity, our robustness together with the government support to retailers will help us to keep fast pace of development".
9M 2008 Key Operating and Financial Highlights:
|
9M 2008 |
9M 2007 |
Growth rate |
||
|
Stores opened, NET |
208 |
176 |
n/a |
|
|
Total number of stores |
2,405 |
2,069 |
n/a |
|
|
Selling space, sq. m. |
753,584 |
593,053 |
27.1% |
|
|
Number of customers, mn |
630.3 |
567.4 |
11.1% |
|
|
Net sales, mn RUR |
93,332.1 |
66,611.0 |
40.1% |
|
|
Net sales, mn US$ |
3,881.5 |
2,572.8 |
50.9% |
|
|
Gross profit, mn RUR |
19,769.0 |
12,825.3 |
54.1% |
|
|
Gross profit, mn US$ |
822.2 |
495.4 |
66.0% |
|
|
Gross margin, % |
21.2% |
19.3% |
n/a |
|
|
EBITDAR*, mn RUR |
8,864.9 |
5,394.0 |
64.3% |
|
|
EBITDAR*, mn US$ |
368.7 |
208.3 |
77.0% |
|
|
EBITDAR margin*, % |
9.5% |
8.1% |
n/a |
|
|
EBITDA, mn RUR |
6,380.2 |
3,484.6 |
83.1% |
|
|
EBITDA, mn US$ |
265.3 |
134.6 |
97.1% |
|
|
EBITDA margin, % |
6.8% |
5,2% |
n/a |
|
|
EBIT, mn RUR |
4,853.7 |
2,523.5 |
92.3% |
|
|
EBIT, mn US$ |
201.9 |
97.5 |
107.1% |
|
|
EBIT margin, % |
5,2% |
3,8% |
n/a |
|
|
Net profit, mn RUR |
2,858.0 |
1554.4 |
83.9% |
|
|
Net profit, mn US$ |
118.9 |
60.0 |
98.0% |
|
|
Net profit margin, % |
3.1% |
2.3% |
n/a |
|
|
LFL growth 9M08 to 9M07** |
||||
|
Number of tickets |
(3.16%) |
|||
|
Average ticket (excl. VAT), RUR |
22.53% |
|||
|
Average ticket (excl. VAT), USD |
31.93% |
|||
|
Revenue, RUR |
18.65% |
|||
|
Revenue, USD |
27.76% |
|||
Note: net revenue in US$ terms is calculated using the daily exchange rate.
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 September 30, 2008 the chain consisted of 2,394 convenience stores and 11 hypermarkets in 796 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 September 30, 2008 the Company operated an in-house logistics system consisting of 8 distribution centers, employing automated stock replenishment systems and a fleet of 1,133 vehicles.
In accordance with the audited IFRS consolidated financial statements for 9M 2008, the Company posted consolidated revenues of approximately US$ 3,881 million and a consolidated EBITDA of around US$ 265 million.
Related Shares:
MGNT.L