Magnit sales up

Magnit sales up

Russian retailer Magnit reported an increase in operating profit for fiscal 2013, boosted by higher sales and stronger margins.

Net profit in the 12 months to end-December rose 41.75%, climbing to RUB35.6bn (US$1,1bn). EBITDA grew 36.56% to RUB64.7bn, the company revealed today (27 January). Gains were propelled by improved operating margins, which totalled 11.16% of sales in the year.

The group also said that sales jumped 29.2% in the period, rising to RUB579.69bn. During the year, the company increased its selling space by 18.13% by opening 1,209 new outlets. Like-for-like sales, stripping out the impact of new store openings, increased 3.88%.

During 2013, Magnit overtook rival X5 to become Russia's largest retailer by sales. 

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OJSC "Magnit" Announces Unaudited FY 2013 Results

Krasnodar, January 27, 2014: OJSC "Magnit", Russia's largest retailer (the "Company"; MICEX and LSE: MGNT) announces its unaudited FY 2013 results prepared in accordance with IFRS[1].

During 2013 the Company added (net) 1,209 stores (1,154 convenience stores, 35 hypermarkets and 26 "Magnit Family" stores) and increased its selling space by 18.13% in comparison to 2012 from 2,549.26 thousand sq. m. to 3,011.38 thousand sq. m. The total store base as of December 31, 2013 reached 8,093 stores (7,200 convenience stores, 161 hypermarkets, 46 "Magnit Family" stores and 686 cosmetics stores).

Revenue in rubles increased by 29.21% YoY from 448,661.13 million RUR in 2012 to 579,694.96 million RUR in 2013. The top line growth was due to an increase in selling space as well as to a 3.88% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 26.14%: from US$ 14,429.65 million to US$ 18,201.93 million[2].

Gross margin grew from 26.53% 2012 to 28.51% in 2013. Gross profit in rubles increased by 38.81% from 119,051.79 million RUR (US$ 3,828.89 million) to 165,251.05 million RUR (US$ 5,188.74 million).

EBITDA increased by 36.56% from 47,380.48 million RUR (US$ 1,523.83 million) in 2012 to 64,700.70 million RUR (US$ 2,031.55 million) in 2013. EBITDA margin in 2013 amounted to 11.16%. EBITDA margin in the 4Q of 2013 was 12.49%.

2013 net income increased by 41.75% and amounted to 35,603.68 million RUR (US$ 1,117.93 million) vs. 25,117.17 million RUR (US$ 807.81 million) in 2012. Net income margin for FY 2013 was 6.14%.

Sergey Galitskiy, the Company's CEO, provided the following comments on the published results:

"We consider 2013 to have been a very successful year. Revenues grew by 29.21% (in Rubles), which was above our guidance. We also achieved a record EBITDA margin, which enables us to maneuver competitively in the Russian market."

Original source: Magnit