RUSSIA: Magnit records H1 profit increase
- Net profit climbs to RUB10.41bn
- EBITDA increases 99.97%
- Sales up 32.6%
In the six-month period, Magnit added 413 stores
Russian grocery retailer Magnit has booked an increase in first-half profits on the back of sales growth.
In the six months to the end of June, net profit amounted to RUB10.41bn (US$339.9m) compared to earnings of RUB4.02bn last year, the retailer reported today (23 August).
EBITDA almost doubled to RUB20.55bn, while EBITDA margin in the period amounted to 9.9% versus 6.56% in 2011.
Sales in the first half climbed 32.6% year-on-year to RUB207.60bn as a result of an increase in selling space, in addition to a 3.5% increase in like-for-like sales.
In the six-month period, Magnit added 413 stores and increased its selling space by 31.42% in comparison to the first half of 2011.
August 23, 2012
OJSC "Magnit" announces 1H 2012 results
Krasnodar, August 23, 2012: OJSC "Magnit" (the "Company"; MICEX and LSE: MGNT) is pleased to announce its reviewed 1H 2012 financial results prepared in accordance with IFRS.
During 1H 2012 the Company added (net) 413 stores (262 convenience stores, 8 hypermarkets, 2 "Magnit Family" stores and 141 cosmetics stores) and increased its selling space by 31.42% in comparison to 1H 2011 from 1,612.85 thousand sq. m. to 2,119.53 thousand sq. m. The total store base as of June 30, 2012 reached 5,722 stores (5,268 convenience stores, 98 hypermarkets, 5 "Magnit Family" stores and 351 cosmetics stores).
Revenue in rubles increased by 32.57% YoY from 156,595.52 million RUR in 1H 2011 to 207,602.53 million RUR in 1H 2012. The top line growth was due to an increase in selling space as well as to a 3.50% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 23.85%: from US$ 5,470.74 million to US$ 6,775.76 million.
Gross margin grew from 22.60% in 1H 2011 to 25.61% in 1H 2012. Gross profit in rubles increased by 50.28% from 35,385.01 million RUR (US$ 1,236.19 million) to 53,175.21 million RUR (US$ 1,735.54 million).
EBITDA increased by 99.97% from 10,275.01 million RUR (US$ 358.96 million) in 1H 2011 to 20,547.29 million RUR (US$ 670.63 million) in 1H 2012. EBITDA margin in 1H 2012 amounted to 9.90% which is 3.34% above the figure of 1H 2011 (6.56%). Net debt/EBITDA ration (in ruble terms) for 1H 2011 amounted to 1.19.
1H 2012 net income increased by 159.21% and amounted to 10,413.57 million RUR (US$ 339.88 million) vs. 4,017.37 million RUR (US$ 140.35 million) in 1H 2011.
Key figures presented in this press-release are immaterially higher compared to numbers under management accounts announced by the Company on July 24, 2012. Thus, according to the reviewed results gross margin is higher by 3 bps, EBIT margin - by 1 bp and net margin - by 1 bp.
Original source: Magnit
Russian retailer Magnit has seen profits benefit from improved purchasing terms and cost controls as it expanded its store footprint over the past 12 months....
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