25th Oct 2012 07:04
Press-releaseKrasnodarOctober 25, 2012
OJSC "Magnit" announces 9M2012 results
Krasnodar, October 25, 2012: OJSC "Magnit" is pleased to announce its unaudited 9M 2012 financial results prepared in accordance with IFRS.
During 9M 2012 the Company added (net) 810 stores (517 convenience stores, 15 hypermarkets, 8 "Magnit Family" stores and 270 cosmetics stores) and increased its selling space by 29.90% in comparison to 9M 2011 from 1,740.42 thousand sq. m. to 2,260.88 thousand sq. m. The total store base as of September 30, 2012 reached 6,119 stores (5,523 convenience stores, 105 hypermarkets, 11 "Magnit Family" stores and 480 cosmetics stores).
Revenue in rubles increased by 33.02% YoY from 240,181.59 million RUR in 9M 2011 to 319,485.04 million RUR in 9M 2012. The top line growth was due to an increase in selling space as well as to a 4.60% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 23.04%: from US$ 8,349.38 million to US$ 10,273.36 million.
Gross margin grew from 23.38% in 9M 2011 to 26.07% in 9M 2012. Gross profit in rubles increased by 48.32% from 56,161.42 million RUR (US$ 1,952.33 million) to 83,299.50 million RUR (US$ 2,678.58 million).
EBITDA increased by 89.41% from 17,287.04 million RUR (US$ 600.95 million) in 9M 2011 to 32,743.51 million RUR (US$ 1,052.90 million) in 9M 2012. EBITDA margin in 9M 2012 amounted to 10.25% which is 3.05% above the figure of 9M 2011 (7.20%).
9M 2012 net income increased by 140.59% and amounted to 16,791.15 million RUR (US$ 539.94 million) vs. 6,979.03 million RUR (US$ 242.61 million) in 9M 2011.
Sergey Galitskiy, the Company's CEO, provided the following comments on the published results:
"One analyst, whom I respect, asked the question, 'Will Magnit surprise again.' Yes, once again we have delivered very good results but please understand that this is not the most crucial thing for us. Rather, the most important objective for us is to build a competitive business model. It is the market that will determine the level of the EBITDA margin."
9M 2012 Key Operating Results 9M 2012 9M 2011 Growth Rate Number of opened stores, NET 810 712 n/a convenience stores 517 591 n/a hypermarkets 15 23 n/a magnit family 8 2 n/a cosmetics stores 270 96 n/a Total number of stores 6,119 4,767 n/a convenience stores 5,523 4,593 n/a hypermarkets 105 73 n/a magnit family 11 3 n/a cosmetics stores 480 98 n/a
Selling space, thousand sq. m. 2,260.88 1,740.42 29.90% convenience stores 1,813.42 1,487.57 21.91% hypermarkets 324.68 226.55 43.31% magnit family 13.63 3.80 n/a cosmetics stores 109.14 22.50 n/a Number of customers, mn 1,483.99 1,198.66 23.80% convenience stores 1,366.55 1,134.82 20.42% hypermarkets 98.22 61.16 60.61% magnit family 4.53 1.39 n/a cosmetics stores 14.69 1.30 n/aLFL resultsLFL growth 9M 2012 - 9M 2011 Convenience Hypermarkets Total stores Average ticket (excluding 5.02% 3.29% 5.04% VAT), RUR Traffic (0.54)% 2.38% (0.42)% Revenue, RUR 4.45% 5.74% 4.60% LFL growth 3Q 2012 - 3Q 2011 Convenience Hypermarkets Total stores Average ticket (excluding 6.10% 4.87% 6.28% VAT), RUR Traffic 0.56% 4.70% 0.73% Revenue, RUR 6.70% 9.80% 7.05% 9M 2012 Key Financial Results 9M 2012 9M 2011 Growth Rate Net sales, mn RUR 319,485.04 240,181.59 33.02% convenience stores 261,755.27 208,071.61 25.80% hypermarkets 52,537.48 31,259.84 68.07% magnit family 1,514.72 511.55 n/a cosmetics stores 3,524.88 264.15 n/a wholesale 152.69 74.44 105.12% Net sales, mn US$ 10,273.36 8,349.38 23.04% convenience stores 8,417.00 7,233.15 16.37% hypermarkets 1,689.39 1,086.68 55.46% magnit family 48.71 17.78 n/a cosmetics stores 113.35 9.18 n/a wholesale 4.91 2.59 89.74% Gross profit, mn RUR 83,299.50 56,161.42 48.32% Gross profit, mn US$ 2,678.58 1,952.33 37.20% Gross margin, % 26.07% 23.38% n/a EBITDAR, mn RUR 40,076.39 22,250.89 80.11% EBITDAR, mn US$ 1,288.70 773.50 66.61% EBITDAR margin, % 12.54% 9.26% n/a EBITDA, mn RUR 32,743.51 17,287.04 89.41% EBITDA, mn US$ 1,052.90 600.95 75.21% EBITDA margin, % 10.25% 7.20% n/a EBIT, mn RUR 24,602.36 11,677.46 110.68% EBIT, mn US$ 791.11 405.94 94.88% EBIT margin, % 7.70% 4.86% n/a Net profit, mn RUR 16,791.15 6,979.03 140.59% Net profit, mn US$ 539.94 242.61 122.55% Net profit margin, % 5.26% 2.91% 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, 2012 the chain consisted of 5,523 convenience stores, 105 hypermarkets, 11 "Magnit Family" stores and 480 cosmetics stores (drogerie) in 1,504 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, 2012 the Company operated an in-house logistics system consisting of 17 distribution centers, employing automated stock replenishment systems and a fleet of 4,082 vehicles.
In accordance with the reviewed IFRS consolidated financial statements for 1H 2012, the Company recorded consolidated revenue of approximately US$ 6,776 million and consolidated EBITDA of around US$ 671 million.
Net sales in 3Q 2012 amounted to 111,882.51 mn RUR, gross profit - 30,124.29 mn RUR (gross margin - 26.92%), EBITDA - 12,196.23 mn RUR (EBITDA margin - 10.90%), net income - 6,377.58 mn RUR (net income margin - 5.70%)
According to management accounts
Based on the average exchange rate for 9M 2012 - 31.0984 RUR per 1 US$, 9M 2011 - 28.7664 RUR per 1 US$
Based on 2,576 convenience stores which were opened by July 1, 2010, and 25 hypermarkets which were opened by May 1, 2010, 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
Based on 3,546 convenience stores which were opened by October 1, 2010, and 35 hypermarkets which were opened by August 1, 2010, 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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