RUSSIA: Magnit full-year earnings rise on sales, margins
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$1,1bn). EBITDA grew 36.56% to RUB64.7bn, the company revealed today (27 January). Gains were propelled by improved operating margins, which totalled 11.16% of sales in the year.
The group also said that sales jumped 29.2% in the period, rising to RUB579.69bn. During the year, the company increased its selling space by 18.13% by opening 1,209 new outlets. Like-for-like sales, stripping out the impact of new store openings, increased 3.88%.
During 2013, Magnit overtook rival X5 to become Russia's largest retailer by sales.
OJSC "Magnit" Announces Unaudited FY 2013 Results
Krasnodar, January 27, 2014: OJSC "Magnit", Russia's largest retailer (the "Company"; MICEX and LSE: MGNT) announces its unaudited FY 2013 results prepared in accordance with IFRS.
During 2013 the Company added (net) 1,209 stores (1,154 convenience stores, 35 hypermarkets and 26 "Magnit Family" stores) and increased its selling space by 18.13% in comparison to 2012 from 2,549.26 thousand sq. m. to 3,011.38 thousand sq. m. The total store base as of December 31, 2013 reached 8,093 stores (7,200 convenience stores, 161 hypermarkets, 46 "Magnit Family" stores and 686 cosmetics stores).
Revenue in rubles increased by 29.21% YoY from 448,661.13 million RUR in 2012 to 579,694.96 million RUR in 2013. The top line growth was due to an increase in selling space as well as to a 3.88% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 26.14%: from US$ 14,429.65 million to US$ 18,201.93 million.
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
Russian retailer X5 Retail Group has reported a fall in margins in the first quarter as it embarked on a promotional offensive to lure in customers. ...
The company is planning further expansion of its outlet network. In 2014, Magnit plans to open 1,100 convenience stores, 350 cosmetic stores and 80 hypermarkets. The company aims to create a leading h...
The company is planning further expansion of convenience stores locations and hypermarket. In 2013 Magnit plans to open 1,100 convenience stores, 250 cosmetic stores and 60 hypermarkets. The company a...
Agricultural Products in Russia industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2009-13, and forecast to 2018). The profile...
Dried pasta and rice are the leading categories in volume terms within dried processed food in Russia, accounting for 89% of overall volume sales in 2013. Russians eat pasta and rice mainly as a garni...
Growth in income levels is changing the consumption habits of Russians. Increasing education about the nutritional values of meals, growing health concerns and an interest in international cuisine are...
Despite the fact that pasta is saturated in Russia, it still has a positive performance every year. More new niches for pasta products are becoming available. In large cities such as Moscow and St. Pe...
Grocery retailers began to develop in Russia much earlier than other retailing channels. Grocery retailers in Russia has historically been a highly fragmented channel in which a high number of small i...
- Comment: Paying the price for eating healthily
- Focus: Will Danone return to growth in dairy?
- Why Nestle is relaxed about the China "drag"
- M&A Watch: Emmi shareholders should consider sale
- Focus: Why French retail deals could hit suppliers
- Nestle organic sales fall on Asia, Europe
- Danone "eyes acquisition of Mead Johnson"
- Heinz jobs in Australasia to go in restructuring
- Symington's acquires Tanfield Foods
- Heinz silent over Polish factory expansion talk