25th Mar 2011 07:00
Press-release
Krasnodar
March 25, 2011
OJSC "Magnit" announces audited FY2010 operating and financial results for the year ended December 31, 2010
Krasnodar, March 25, 2011: OJSC "Magnit" (the "Company"; RTS, MICEX and LSE: MGNT) is pleased to release its FY2010 financial results prepared in accordance with IFRS and audited by Ernst & Young.
During 2010 the Company added (net) 827 stores (798 convenience stores, 27 hypermarkets and 2 drogerie stores) and increased its selling space by 34.20% in comparison to FY2009 from 1,059.87 thousand sq. m. to 1,422.38 thousand sq. m. The total store base as of December 31, 2010 reached 4,055 stores (4,002 convenience stores, 51 hypermarkets and 2 drogerie stores).
Revenue in rubles increased by 39.05% YoY from 169,860.97 million RUR in 2009 to 236,193.55 million RUR in 2010. The top line growth was due to an increase in selling space as well as to a 9.19% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 45.25%: from US$ 5,354.49 million to US$ 7,777.40 million.[1]
Gross margin reduced from 23.48% in 2009 to 22.38% in 2010 due to continued large-scale price investments. Gross profit in rubles increased by 32.53% from 39,884.61 million RUR (US$ 1,257.27 million) to 52,858.39 million RUR (US$ 1,740.53 million).
EBITDA increased by 18.67% from 16,162.55 million RUR (US$ 509.49 million) in 2009 to 19,179.96 million RUR (US$ 631.56 million) in 2010. EBITDA margin in 2010 amounted to 8.12% which is 1.4% below the figure of 2009 9.52%. Net debt/EBITDA ratio (in ruble terms) for 2010 amounted to 1.39.
2010 net income increased by 16.10% and amounted to 10,314.11 million RUR (US$ 333.70 million) vs. 8,728.77 million RUR (US$ 275.15 million) in 2009.
Sergey Galitskiy, the Company's CEO, provided the following comments on the published 2010 results:
"We consider 2010 results positive. We would like to mark two trends appeared in the 4th quarter of the last year: strong price growth of automobile fuel and significant increase of the number of stores included in the renovation program. Speaking about this year expectations we are optimistic and look to considerable rate of sales growth".
2010 Key Operating Results
FY2010 | FY2009 | Growth Rate | |
Number of opened stores, NET | 827 | 646 | n/a |
convenience stores* | 800 | 636 | n/a |
hypermarkets | 27 | 10 | n/a |
Total number of stores | 4,055 | 3,228 | n/a |
convenience stores* | 4,004 | 3,204 | n/a |
hypermarkets | 51 | 24 | n/a |
Selling space, sq. m. | 1,422.38 | 1,059.87 | 34.20% |
convenience stores* | 1,257.30 | 981.76 | 28.07% |
hypermarkets | 165.08 | 78.11 | 111.35% |
Number of customers, mn | 1,301.90 | 1,013.44 | 28.46% |
convenience stores* | 1,256.67 | 988.30 | 27.15% |
hypermarkets | 45.24 | 25.14 | 79.94% |
* including cosmetics stores (drogerie)
LFL Results 2010 to 2009[2]
LFL growth | Convenience stores | Hypermarkets | Total |
Average ticket (excluding VAT), RUB
| 5.77% | 5.26% | 5.97% |
Traffic | 2.95% | 9.76% | 3.03% |
Revenue, RUB | 8.89% | 15.53% | 9.19% |
2010 Key Financial Results
FY2010 | FY2009 | Growth Rate | |
Net sales, mn RUR | 236,193.55 | 169,860,97 | 39.05% |
convenience stores* | 212,313.02 | 156,526.03 | 35.64% |
hypermarkets | 23,824.88 | 13,078.49 | 82.17% |
wholesale | 55.65 | 256.45 | (78.30)% |
Net sales, mn US$ | 7,777.40 | 5,354.49 | 45.25% |
convenience stores* | 6,991.06 | 4,934.13 | 41.69% |
hypermarkets | 784.51 | 412.27 | 90.29% |
wholesale | 1.83 | 8.08 | (77.33)% |
Gross profit, mn RUR | 52,858.39 | 39,884.61 | 32.53% |
Gross profit, mn US$ | 1,740.53 | 1,257.27 | 38.44% |
Gross margin, % | 22.38% | 23.48% | n/a |
EBITDAR, mn RUR | 23,891.34 | 20,017.98 | 19.35% |
EBITDAR, mn US$ | 786.70 | 631.02 | 24.67% |
EBITDAR margin, % | 10.12% | 11.78% | n/a |
EBITDA, mn RUR | 19,179.96 | 16,162.55 | 18.67% |
EBITDA, mn US$ | 631.56 | 509.49 | 23.96% |
EBITDA margin, % | 8.12% | 9.52% | n/a |
EBIT, mn RUR | 14,613.67 | 12,892.41 | 13.35% |
EBIT, mn US$ | 481.20 | 406.40 | 18.40% |
EBIT margin, % | 6.19% | 7.59% | n/a |
Net profit, mn RUR | 10,134.11 | 8,728.77 | 16.10% |
Net profit, mn US$ | 333.70 | 275.15 | 21.28% |
Net profit margin, % | 4.29% | 5.14% | n/a |
* including cosmetics stores (drogerie)
Note: net revenue in US$ terms is calculated using the daily exchange rate.
Please follow the link below to view FY 2010 financial report in full:
http://www.magnit-info.ru/eng/investors/financial_reports/magnit/
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 December 31, 2010 the chain consisted of 4,002 convenience stores, 51 hypermarkets and 2 cosmetics stores (drogerie) in 1,216 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 December 31, 2010 the Company operated an in-house logistics system consisting of 11 distribution centers, employing automated stock replenishment systems and a fleet of 2,642 vehicles.
In accordance with the audited IFRS consolidated financial statements for the twelve months ended December 31, 2010, the Company recorded consolidated revenue of approximately US$7,777 million and consolidated EBITDA of around US$632 million.
[1] Based on the average exchange rate for 2010 - 30.3692 RUR per 1 USD, 2009 - 31.7231 RUR per 1 USD
[2] Based on 2,025 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
Related Shares:
MGNT.L