11th Oct 2011 07:02
Press-release
Krasnodar
October 11, 2011
OJSC "Magnit" announces unaudited September 2011 results
Krasnodar, October 11, 2011: OJSC "Magnit" (the "Company"; RTS, MICEX and LSE: MGNT) is pleased to announce its unaudited September 2011 results[1].
During 9M 2011 the Company opened (net) 712 stores. The total store base reached 4,767 stores (4,593 convenience stores, 76 hypermarkets and 98 cosmetics stores). Preliminary consolidated unaudited net retail revenue (excl. VAT) in 9M 2011 increased by 45.99% in ruble terms (compared to 9M 2010) and stood at 240,107.15 million rubles.
Sergey Galitskiy, the Company's CEO, provided the following comments on the published 9М 2011 results:
"During last three months the Company has been actively working to improve operating efficiency of its business. We see positive trends and will continue to focus on it. At that we do not see any noticeable decline in consumer activity in the third quarter this year. However looking at the sales growth rate data it should be noted that in the third quarter 2011 there was food deflation on the level of -2.7%[2]. At the same time in the third quarter 2010 food inflation growth rate amounted to 2.9%2.
Thus on the back of this 5.6% difference in inflation it is possible to speak of comparability of sales growth rates in the third quarter 2011 and the third quarter 2010."
September 2011 Key Operating and Financial Highlights:
September 2011 | September 2010 | Growth Rate | 9M 2011 | 9M 2010 | Growth Rate | |
Number of opened stores, NET | 108 | 79 | n/a | 712 | 465 | n/a |
convenience stores | 77 | 76 | n/a | 591 | 454 | n/a |
hypermarkets | 2 | 3 | n/a | 25 | 11 | n/a |
cosmetics stores | 29 | - | n/a | 96 | - | n/a |
Total number of stores | 4,767 | 3,693 | n/a | 4,767 | 3,693 | n/a |
convenience stores | 4,593 | 3,658 | n/a | 4,593 | 3,658 | n/a |
hypermarkets | 76 | 35 | n/a | 76 | 35 | n/a |
cosmetics stores | 98 | - | n/a | 98 | - | n/a |
Selling space, thousand sq. m. | 1,740.42 | 1,241.09 | 40.23% | 1,740.42 | 1,241.09 | 40.23% |
convenience stores | 1,487.57 | 1,124.79 | 32.25% | 1,487.57 | 1,124.79 | 32.25% |
hypermarkets | 230.35 | 116.30 | 98.07% | 230.35 | 116.30 | 98.07% |
cosmetics stores | 22.50 | - | n/a | 22.50 | - | n/a |
Number of customers, million | 135.81 | 111.30 | 22.02% | 1,198.66 | 940.20 | 27.49% |
convenience stores | 127.46 | 107.23 | 18.87% | 1,134.81 | 909.32 | 24.80% |
hypermarkets | 7.92 | 4.07 | 94.49% | 62.54 | 30.88 | 102.55% |
cosmetics stores | 0.43 | - | n/a | 1.30 | - | n/a |
Net retail sales, million RUR | 26,540.69 | 19,923.89 | 33.21% | 240,107.15 | 164,472.34 | 45.99% |
convenience stores | 22,528.73 | 17,817.16 | 26.44% | 208,071.61 | 148,721.62 | 39.91% |
hypermarkets | 3,920.88 | 2,106.73 | 86.11% | 31,771.39 | 15,750.72 | 101.71% |
cosmetics stores | 91.08 | - | n/a | 264.15 | - | n/a |
Net retail sales, million US$[3] | 869.84 | 646.11 | 34.63% | 8,346.79 | 5,436.42 | 53.53% |
convenience stores | 738.35 | 577.79 | 27.79% | 7,233.15 | 4,915.80 | 47.14% |
hypermarkets | 128.50 | 68.32 | 88.09% | 1,104.46 | 520.62 | 112.14% |
cosmetics stores | 2.98 | - | n/a | 9.18 | - | n/a |
LFL Results
LFL growth 9М 2011 - 9М 2010[4] | Convenience stores | Hypermarkets | Total |
Average ticket (excluding VAT), RUR | 12.26% | 6.51% | 11.61% |
Traffic | 2.43% | 1.30% | 2.39% |
Revenue, RUR | 14.99% | 7.89% | 14.29% |
LFL growth 3Q 2011 - 3Q 2010[5] | Convenience stores | Hypermarkets | Total |
Average ticket (excluding VAT), RUR | 9.96% | 4.67% | 9.44% |
Traffic | (1.66)% | (1.27)% | (1.65)% |
Revenue, RUR | 8.13% | 3.35% | 7.64% |
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, 2011 the chain consisted of 4,593 convenience stores, 76 hypermarkets and 98 cosmetics stores (drogerie) in 1,325 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, 2011 the Company operated an in-house logistics system consisting of 14 distribution centers, employing automated stock replenishment systems and a fleet of 3,705 vehicles.
In accordance with the unaudited IFRS consolidated financial statements for 1H 2011, the Company recorded consolidated revenue of approximately US$5,471 million and consolidated EBITDA of around US$359 million.
[1] According to management accounts
[2]http://gks.ru/wps/wcm/connect/rosstat/rosstatsite/main/price/#
[3] Based on the average exchange rate for September 2011 of 30.5121 RUB per 1 USD, September 2010 - 30.8365 RUB per 1 USD, 9М 2011 - 28.7664 RUB per 1 USD, 9M 2010 - 30.2538 RUB per 1 USD
[4] Based on 2,031 convenience stores which were opened by July 1, 2009, and 14 hypermarkets which were opened by May 1, 2009, 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
[5] Based on 2,825 convenience stores which were opened by January 1, 2010, and 22 hypermarkets which were opened by November 1, 2009, 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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