• Profits soar by 167% to RUB4.77bn (US$157.7m)
  • EBITDA jumps 105% to reach RUB9.71bn
  • Revenue climbs 34% to RUB100.612bn
Magnit saw profits soar by 167% in the quarter

Magnit saw profits soar by 167% in the quarter

Russian retailer Magnit saw its profit more than double in the first quarter, boosted by rapid expansion and stores openings.

The company, which increased its selling space by more than a third year-on-year in the January to March period, saw profits soar by 167% to RUB4.77bn (US$157.7m).

EBITDA jumped 105% to reach RUB9.71bn, while EBITDA margin went up from 6.32% to 9.65%.

Revenue climbed 34% in the period to reach RUB100.612bn driven by an increase in selling space in addition to a 4.12% increase in like-for-like sales.

During the quarter, Magnit added 157 stores, which included 98 convenience stores, 3 hypermarkets and 56 cosmetics stores. It increased its selling space by 36.3%.

"We are glad to present you rather strong 1Q 2012 results which are based primarily on the improvements of purchasing terms and optimisations achieved in the second half 2011," said CEO Sergey Galitskiy.

"Sustainability of the results depends a lot on the expected growth of the utilities cost in 3Q-4Q and strengthening competition. I would like to note that in the 2Q this year we have started to invest in price attractiveness of our stores more actively.

"At this stage we reiterate our guidance of sales and efficiency growth for 2012 and will be ready to update them at the end of the first half of the year".

The company reiterated its earlier forecast of 25-30% sales growth in rouble terms for 2012.

Click here to view the full earnings release.