9th Aug 2012 07:00
Press-release
Krasnodar
August 9, 2012
OJSC "Magnit" announces 32% retail sales growth in rubles in July 2012
Krasnodar, August 9, 2012: OJSC "Magnit" (the "Company"; MICEX and LSE: MGNT) announces 32% retail sales growth in rubles in July 2012[1].
During 7M 2012 the Company opened (net) 528 stores. The total store base reached 5,837 stores (5,340 convenience stores, 102 hypermarkets, 6 "Magnit Family" stores and 389 cosmetics stores). Preliminary consolidated unaudited net retail revenue (excl. VAT) in 7M 2012 increased by 32.40% in ruble terms (compared to 7M 2011) and stood at 245,376.27 million rubles.
As a result of amendments to the Federal law 171-FZ "On alcohol turnover…" effective from 01.07.2012 sale of alcohol had to be suspended in 111 stores due to their proximity to markets, sports and medical institutions, crowded areas. Sale of alcohol was temporarily suspended in another 144 stores due to absence of long-term registered rent agreements. Within August-September 2012 sale of alcohol products will be resumed in more than 100 out of them as soon as the registration procedure is completed. Since the beginning of 2012 the Company has renegotiated and registered over 1 000 rent agreements to comply with this requirement effective from July 1, 2012.
We anticipate that the impact of this situation on sales volume and operating efficiency of the Company in 2012 will be immaterial.
July 2012 Key Operating and Financial Highlights:
July 2012 | July 2011 | Growth Rate | 7M 2012 | 7M 2011 | Growth Rate | |
Number of opened stores, NET | 115 | 87 | n/a | 528 | 492 | n/a |
convenience stores | 72 | 69 | n/a | 334 | 433 | n/a |
hypermarkets | 4 | 3 | n/a | 12 | 16 | n/a |
magnit family | 1 | - | n/a | 3 | 2 | n/a |
cosmetics stores | 38 | 15 | n/a | 179 | 41 | n/a |
Total number of stores | 5,837 | 4,547 | n/a | 5,837 | 4,547 | n/a |
convenience stores | 5,340 | 4,435 | n/a | 5,340 | 4,435 | n/a |
hypermarkets | 102 | 66 | n/a | 102 | 66 | n/a |
magnit family | 6 | 3 | n/a | 6 | 3 | n/a |
cosmetics stores | 389 | 43 | n/a | 389 | 43 | n/a |
Selling space, thousand sq. m. | 2,161.91 | 1,646.19 | 31.33% | 2,161.91 | 1,646.19 | 31.33% |
convenience stores | 1,753.71 | 1,425.60 | 23.02% | 1,753.71 | 1,425.60 | 23.02% |
hypermarkets | 312.38 | 207.92 | 50.24% | 312.38 | 207.92 | 50.24% |
magnit family | 7.42 | 3.80 | n/a | 7.42 | 3.80 | n/a |
cosmetics stores | 88.40 | 8.87 | n/a | 88.40 | 8.87 | n/a |
Net retail sales, million RUR | 37,908.79 | 28,791.37 | 31.67% | 245,376.27 | 185,324.43 | 32.40% |
convenience stores | 30,691.43 | 24,599.92 | 24.76% | 202,159.53 | 161,577.54 | 25.12% |
hypermarkets | 6,553.33 | 4,043.95 | 62.05% | 39,754.49 | 23,329.92 | 70.40% |
magnit family | 192.92 | 105.10 | n/a | 990.56 | 317.74 | n/a |
cosmetics stores | 471.10 | 42.39 | n/a | 2,471.69 | 99.22 | n/a |
Net retail sales, million US$[2] | 1,166.36 | 1,031.92 | 13.03% | 7,938.38 | 6,498.42 | 22.16% |
convenience stores | 944.30 | 881.70 | 7.10% | 6,540.24 | 5,665.73 | 15.44% |
hypermarkets | 201.63 | 144.94 | 39.11% | 1,286.13 | 818.07 | 57.22% |
magnit family | 5.94 | 3.77 | n/a | 32.05 | 11.14 | n/a |
cosmetics stores | 14.49 | 1.52 | n/a | 79.96 | 3.48 | n/a |
For further information, please contact:
Oleg Goncharov | Director, Investor Relations e-mail: [email protected] Tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5100 Mob.: +7 (903) 411-40-35 Direct line for investors only: +7 (861) 277-45-62 |
Dina Svishcheva | Manager, Investor Relations e-mail: [email protected] Tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5101 Mob.: +7-961-511-02-02 Direct line for investors only: +7 (861) 277-45-62 |
Company description:
Based in Krasnodar, in the Southern region of Russia, Open Joint Stock Company "Magnit" (LSE and MICEX: MGNT, S&P: "BB-") is the holding company for a group of entities that operate in the retail trade under the "Magnit" brand. The chain of "Magnit" stores is one of the leading food retail networks in Russia. As of June 30, 2012 the chain consisted of 5,268 convenience stores, 98 hypermarkets, 5 "Magnit Family" stores and 351 cosmetics stores (drogerie) in 1,461 locations in the Russian Federation.
Approximately two-thirds of the Company's stores are located in cities with a population of less than 500,000 inhabitants. Most of its stores are located in the Southern, North-Caucasian, Central and Volga regions. The Company also operates stores in the North-Western, Urals and Siberian regions.
As of June 30, 2012 the Company operated an in-house logistics system consisting of 16 distribution centers, employing automated stock replenishment systems and a fleet of 4,070 vehicles.
In accordance with the audited IFRS consolidated financial statements for 2011, the Company recorded consolidated revenue of approximately US$ 11,423 million and consolidated EBITDA of around US$ 939 million.
[1]According to management accounts
[2]Based on the average exchange rate for July 2012 of 32.5018 RUB per 1 USD, July 2011 - 27.9007 RUB per 1 USD, 7М 2012 - 30.9101 RUB per 1 USD, 7M 2011 - 28.5184 RUB per 1 USD
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