9th Jul 2015 08:02
PJSC MAGNIT - June/6M 2015 ResultsPJSC MAGNIT - June/6M 2015 Results
PR Newswire
London, July 9
Press-release
Krasnodar
July 9, 2015
PJSC “Magnit” Announces 24.57% Retail Sales Growth in Rubles for June 2015[1]
Krasnodar, July 9, 2015: PJSC “Magnit”, Russia’s largest food retailer (the “Company”; MOEX and LSE: MGNT) announces 24.57% retail sales growth in rubles for June 2015.
During June 2015 the Company opened (net) 191 stores. The total store base reached 10,728 stores (8,890 convenience stores, 201 hypermarkets, 110 “Magnit Family” stores and 1,527 drogerie stores).
Preliminary consolidated unaudited net retail revenue (excl. VAT) in 6M 2015 increased by 30.04% in ruble terms (compared to 6M 2014) and stood at 453,698.06 million rubles.
According to Rosstat, general inflation in June 2015 amounted to 0.2% compared to 0.6% in June 2014, in 6M2015 - 8.5% compared to 4.8% in 6M2014.
Food inflation in June 2015 amounted to -0.4% compared to 0.7% in June 2014, in 6M2015 – 10.8% compared to 7.6% in 6M2014.
Sergey Galitskiy, the Company's CEO, provided the following comments on the published results:
“The reasons for the lower sales growth rate in June this year are: the high base effect, a much lower inflation rate (0.2% in June 2015 vs 0.6% in June 2014), as well as, the average ticket decline due to customers trading down”.
June 2015 Key Operating and Financial Highlights:
| June 2015 | June 2014 | Growth Rate | |
| Number of opened stores, NET | 191 | 101 | n/a |
| convenience stores | 99 | 69 | n/a |
| hypermarkets | 1 | 0 | n/a |
| magnit family | 3 | 6 | n/a |
| drogerie stores | 88 | 26 | n/a |
| Total number of stores | 10,728 | 8,618 | n/a |
| convenience stores | 8,890 | 7,614 | n/a |
| hypermarkets | 201 | 169 | n/a |
| magnit family | 110 | 57 | n/a |
| drogerie stores | 1,527 | 778 | n/a |
| Selling space, eop, th. sq. m. | 3,928.00 | 3,189.21 | 23.17% |
| convenience stores | 2,866.25 | 2,433.66 | 17.78% |
| hypermarkets | 589.81 | 504.54 | 16.90% |
| magnit family | 122.73 | 67.03 | 83.10% |
| drogerie stores | 349.21 | 183.99 | 89.80% |
| Selling space growth, th. sq.m. | 59.99 | 35.94 | n/a |
| convenience stores | 35.36 | 22.68 | n/a |
| hypermarkets | 2.50 | 0.00 | n/a |
| magnit family | 2.79 | 7.81 | n/a |
| drogerie stores | 19.34 | 5.45 | n/a |
| Number of customers, million | 288.10 | 247.02 | 16.63% |
| convenience stores | 245.89 | 215.99 | 13.84% |
| hypermarkets | 22.43 | 20.11 | 11.53% |
| magnit family | 8.30 | 4.77 | 74.11% |
| drogerie stores | 11.48 | 6.15 | 86.79% |
| Net retail sales, million RUR | 78,520.27 | 63,031.96 | 24.57% |
| convenience stores | 58,566.94 | 47,957.24 | 22.12% |
| hypermarkets | 13,307.58 | 11,632.12 | 14.40% |
| magnit family | 3,555.55 | 1,948.73 | 82.46% |
| drogerie stores | 3,090.20 | 1,493.87 | 106.86% |
| Net retail sales, million US$[2] | 1,440.51 | 1,831.85 | (21.36)% |
| convenience stores | 1,074.45 | 1,393.75 | (22.91)% |
| hypermarkets | 244.14 | 338.06 | (27.78)% |
| magnit family | 65.23 | 56.63 | 15.18% |
| drogerie stores | 56.69 | 43.42 | 30.58% |
2Q and 6M 2014 Key Operating and Financial Highlights:
| 2Q 2015 | 2Q 2014 | Growth Rate | 6M 2015 | 6M 2014 | Growth Rate | |
| Number of opened stores, NET | 608 | 362 | n/a | 1,017 | 525 | n/a |
| convenience stores | 309 | 273 | n/a | 546 | 414 | n/a |
| hypermarkets | 5 | 4 | n/a | 11 | 8 | n/a |
| magnit family | 6 | 7 | n/a | 13 | 11 | n/a |
| drogerie stores | 288 | 78 | n/a | 447 | 92 | n/a |
| Total number of stores | 10,728 | 8,618 | n/a | 10,728 | 8,618 | n/a |
| convenience stores | 8,890 | 7,614 | n/a | 8,890 | 7,614 | n/a |
| hypermarkets | 201 | 169 | n/a | 201 | 169 | n/a |
| magnit family | 110 | 57 | n/a | 110 | 57 | n/a |
| drogerie stores | 1,527 | 778 | n/a | 1,527 | 778 | n/a |
| Selling space, eop, th. sq. m. | 3,928.00 | 3,189.21 | 23.17% | 3,928.00 | 3,189.21 | 23.17% |
| convenience stores | 2,866.25 | 2,433.66 | 17.78% | 2,866.25 | 2,433.66 | 17.78% |
| hypermarkets | 589.81 | 504.54 | 16.90% | 589.81 | 504.54 | 16.90% |
| magnit family | 122.73 | 67.03 | 83.10% | 122.73 | 67.03 | 83.10% |
| drogerie stores | 349.21 | 183.99 | 89.80% | 349.21 | 183.99 | 89.80% |
| Selling space growth, th. sq.m. | 195.27 | 120.60 | n/a | 337.36 | 177.83 | n/a |
| convenience stores | 111.56 | 83.95 | n/a | 192.94 | 121.46 | n/a |
| hypermarkets | 12.78 | 11.01 | n/a | 30.72 | 21.66 | n/a |
| magnit family | 6.61 | 8.95 | n/a | 13.66 | 13.77 | n/a |
| drogerie stores | 64.31 | 16.70 | n/a | 100.04 | 20.95 | n/a |
| Number of customers, million | 851.22 | 737.81 | 15.37% | 1,617.61 | 1,400.48 | 15.50% |
| convenience stores | 729.07 | 647.16 | 12.66% | 1,387.21 | 1,229.92 | 12.79% |
| hypermarkets | 66.90 | 59.88 | 11.72% | 127.91 | 112.96 | 13.24% |
| magnit family | 24.43 | 13.87 | 76.10% | 45.32 | 25.41 | 78.38% |
| drogerie stores | 30.82 | 16.90 | 82.33% | 57.17 | 32.19 | 77.58% |
| Net retail sales, million RUR | 235,466.29 | 184,951.91 | 27.31% | 453,698.06 | 348,903.73 | 30.04% |
| convenience stores | 175,837.63 | 140,961.74 | 24.74% | 338,433.76 | 266,982.05 | 26.76% |
| hypermarkets | 40,640.38 | 34,418.47 | 18.08% | 79,371.13 | 64,008.30 | 24.00% |
| magnit family | 10,734.92 | 5,628.15 | 90.74% | 20,336.82 | 10,081.71 | 101.72% |
| drogerie stores | 8,253.35 | 3,943.55 | 109.29% | 15,556.35 | 7,831.68 | 98.63% |
| Net retail sales, million US$[3] | 4,471.93 | 5,284.36 | (15.37)% | 7,904.59 | 9,974.49 | (20.75)% |
| convenience stores | 3,339.47 | 4,027.49 | (17.08)% | 5,896.39 | 7,632.51 | (22.75)% |
| hypermarkets | 771.83 | 983.39 | (21.51)% | 1,382.85 | 1,829.88 | (24.43)% |
| magnit family | 203.88 | 160.80 | 26.78% | 354.32 | 288.22 | 22.94% |
| drogerie stores | 156.75 | 112.67 | 39.12% | 271.03 | 223.89 | 21.05% |
LFL results
| Formats | 2Q 2015 - 2Q 2014[4] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 7,201 | 10.38% | (0.59)% | 9.74% |
| Hypermarkets | 169 | 6.49% | (3.02)% | 3.27% |
| Magnit Family | 49 | 5.43% | (3.10)% | 2.16% |
| Drogeries | 715 | 14.35% | 10.18% | 25.99% |
| Total | 8,134 | 9.26% | (0.60)% | 8.61% |
| Formats | 6M 2015 - 6M 20144 | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 7,103 | 12.06% | (0.15)% | 11.89% |
| Hypermarkets | 168 | 10.16% | (1.36)% | 8.66% |
| Magnit Family | 49 | 9.82% | (0.91)% | 8.82% |
| Cosmetics Stores | 682 | 12.21% | 11.32% | 24.92% |
| Total | 8,002 | 11.49% | (0.02)% | 11.47% |
For further information, please contact:
| Timothy Post | Director, Investor Relations Email: [email protected] Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562 |
| Dina Svishcheva | Deputy Director, Investor Relations Email: [email protected] Office: +7-861-277-45-54 x 15101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562 |
Company description:
Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of June 30, 2015, Magnit operated 29 distribution centers and over 10,700 stores (8,890 convenience, 311 hypermarkets, and 1,527 drogerie stores) in approximately 2,233 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS consolidated financial statements for 2014, Magnit had revenues of RUB 764 billion and an EBITDA of RUB 86 billion. Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.
[1] According to management accounts
[2] Based on the average exchange rate for June 2015 - 54.5086 RUB per 1 USD, June 2014 – 34.4089 RUB per 1 USD
[3] Based on the average exchange rate for 2Q 2015 - 52.6543 RUB per 1 USD, 2Q 2014 – 34.9999 RUB per 1 USD, 6M 2015 – 57.3968 RUB per 1 USD, 6M 2014 – 34.9796 RUB per 1 USD
[4] LFL calculation base includes stores (all formats), which have been opened 12 months prior to the last month of the reporting period. i.e. by June 1, 2014.
Related Shares:
MGNT.L