18th Oct 2010 07:00
Press-release
Krasnodar
October 18, 2010
OJSC "Magnit" announces unaudited 9M 2010 operating and financial results
Krasnodar, October 18, 2010: OJSC "Magnit" (the "Company"; RTS, MICEX and LSE: MGNT) is pleased to release its 9M 2010 financial results prepared in accordance with IFRS[1].
Sergey Galitskiy, the Company's CEO, provided the following comments on the published 9M 2010 results:
"We are delighted to present you our 3Q 2010 results demonstrating steady sales and operating efficiency growth at the rates exceeding market expectations.
On the whole the results are in line with our plans. Positive change of LFL traffic and average ticket and rise of new store opening growth rates instill confidence in targeted sales growth of not less than 36% in ruble terms at the year end. At that expectations of EBITDA margin for 2010 are not below 8.2%. Hypermarket opening plans, upgrade of guidance for new convenience stores to 800, increase of investments in transportation and warehousing logistics system allow us to speak of this year CAPEX to stand at 1.2 - 1.3 billion US dollars (excl. VAT)".
Khachatur Pombukhchan, CFO, commented:
"One of the factors influenced 3Q 2010 financial results was revision of the Company's position on necessity for VAT refund from merchandise losses. In view of court practice in favor of taxpayers as well as position of Supreme Arbitration Court of the Russian Federation, the Company made a decision to correct its obligations to the budget in the amount of about 470 million rubles".
During 9M 2010 the Company added (net) 465 stores (454 convenience stores and 11 hypermarkets) and increased its selling space by 28.31% in comparison to 9M 2009 from 967.23 thousand sq. m. to 1,241.09 thousand sq. m. The total store base as of September 30, 2010 reached 3,693 stores (3,658 convenience stores and 35 hypermarkets).
Revenue in rubles increased by 34.99% YoY from 121,867.02 million RUR in 9M 2009 to 164,512.49 million RUR in 9M 2010. The top line growth was due to an increase in selling space as well as to a 6.78% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 44.93%: from US$ 3,751.90 million to US$ 5,437.75 million.[2]
Gross margin reduced from 23.27% in 9M 2009 to 22.30% in 9M 2010 due to continued large-scale price investments. Gross profit in rubles increased by 29.37% from 28,358.51 million RUR (US$ 873.07 million) to 36,687.96 million RUR (US$ 1,212.67 million).
EBITDA increased by 16.50% from 11,362.47 million RUR (US$ 349.81 million) in 9M 2009 to 13,236.76 million RUR (US$ 437.52 million) in 9M 2010. EBITDA margin in 9M 2010 amounted to 8.05% which is 1.28% below the figure of 9M 2009 (9.32%).
9M 2010 net income increased by 22.30% and amounted to 7,169.41 million RUR (US$ 236.98 million) vs. 5,861.96 million RUR (US$ 180.47 million) in 9M 2009.
9М 2010 Key Operating Results
|
|
9М 2010 |
9М 2009 |
Growth Rate |
|
Number of opened stores, NET |
465 |
399 |
n/a |
|
convenience stores |
454 |
392 |
n/a |
|
hypermarkets |
11 |
7 |
n/a |
|
|
|||
|
Total number of stores |
3,693 |
2,981 |
n/a |
|
convenience stores |
3,658 |
2,960 |
n/a |
|
hypermarkets |
35 |
21 |
n/a |
|
|
|||
|
Selling space, sq. m. |
1,241,090 |
967,228 |
28.31% |
|
convenience stores |
1,124,790 |
896,573 |
25.45% |
|
hypermarkets |
116,300 |
70,655 |
64.60% |
|
|
|||
|
Number of customers, mn |
940.20 |
737.50 |
27.49% |
|
convenience stores |
909.32 |
720.27 |
26.25% |
|
hypermarkets |
30.88 |
17.23 |
79.20% |
LFL Results
|
LFL growth 9М 2010 to 9М 2009[3] |
Convenience stores |
Hypermarkets |
Total |
|
Average ticket (excluding VAT), RUB |
3.84% |
4.51% |
4.14% |
|
Traffic |
2.43% |
11.01% |
2.53% |
|
Revenue, RUB |
6.36% |
16.01% |
6.78% |
|
|
|||
|
LFL growth 3Q 2010 to 3Q 2009 [4] |
Convenience stores |
Hypermarkets |
Total |
|
Average ticket (excluding VAT), RUB |
5.39% |
7.18% |
5.81% |
|
Traffic |
6.11% |
13.22% |
6.24% |
|
Revenue, RUB |
11.83% |
21.36% |
12.41% |
9M 2010 Key Financial Results
|
|
9M 2010 |
9M 2009 |
Growth Rate |
|
Net sales, mn RUR |
164,512.49 |
121,867.02 |
34.99% |
|
convenience stores |
148,721.62 |
112,815.12 |
31.83% |
|
hypermarkets |
15,750.72 |
8,831.06 |
78.36% |
|
wholesale |
40.16 |
220.84 |
(81.82)% |
|
Net sales, mn US$ |
5,437.75 |
3,751.90 |
44.93% |
|
convenience stores |
4,915.80 |
3,473.22 |
41.53% |
|
hypermarkets |
520.62 |
271.88 |
91.49% |
|
wholesale |
1.33 |
6.80 |
(80.48)% |
|
Gross profit, mn RUR |
36,687.96 |
28,358.51 |
29.37% |
|
Gross profit, mn US$ |
1,212.67 |
873.07 |
38.90% |
|
Gross margin, % |
22.30% |
23.27% |
n/a |
|
EBITDAR, mn RUR |
16,605.10 |
14,200.15 |
16.94% |
|
EBITDAR, mn US$ |
548.86 |
437.18 |
25.55% |
|
EBITDAR margin, % |
10.09% |
11.65% |
n/a |
|
EBITDA, mn RUR |
13,236.76 |
11,362.47 |
16.50% |
|
EBITDA, mn US$ |
437.52 |
349.81 |
25.07% |
|
EBITDA margin, % |
8.05% |
9.32% |
n/a |
|
EBIT, mn RUR |
10,061.59 |
9,004.23 |
11.74% |
|
EBIT, mn US$ |
332.57 |
277.21 |
19.97% |
|
EBIT margin, % |
6.12% |
7.39% |
n/a |
|
Net profit, mn RUR |
7,169.41 |
5,861.96 |
22.30% |
|
Net profit, mn US$ |
236.98 |
180.47 |
31.31% |
|
Net profit margin, % |
4.36% |
4.81% |
n/a |
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 Svishcheva |
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 September 30, 2010 the chain consisted of 3,658 convenience stores and 35 hypermarkets in 1,156 locations in the Russian Federation.
Approximately two-thirds of the Company's stores are located in cities with a population of less than 500,000 inhabitants. Most of its stores are located in the Southern, North-Caucasian, Central and Volga regions. The Company also operates stores in the North-Western, Urals and Siberian regions.
As of September 30, 2010 the Company operated an in-house logistics system consisting of 10 distribution centers, employing automated stock replenishment systems and a fleet of 2,262 vehicles.
In accordance with the unaudited IFRS consolidated financial statements for 1H 2010, the Company recorded consolidated revenue of approximately US$3,448 million and consolidated EBITDA of around US$252 million
[1] According to management accounts
[2] Based on the average exchange rate for 9M 2010 - 30.2538 RUR per 1 USD, 9М 2009 - 32.4814 RUR per 1 USD
[3] Based on 2,070 convenience stores which were opened by July 01, 2008, and 7 hypermarkets which were opened by May 01, 2008, i.e. based on the result of the convenience stores that had been operating for not less than six months and hypermarkets that had been operating for not less than eight months and have achieved a mature level of sales
[4] Based on 2,394 convenience stores which were opened by January 01, 2009, and 11 hypermarkets which were opened by November 01, 2008, i.e. based on the result of the convenience stores that had been operating for not less than six months and hypermarkets that had been operating for not less than eight months and have achieved a mature level of sales
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