Magnit said sales growth is expected to slow to 25-27% in 2013

Magnit said sales growth is expected to slow to 25-27% in 2013

Russian grocery retailer Magnit has upped its full-year sales guidance but said growth is expected to slow in 2013.

In an update today (17 September), the retailer raised its full-year sales guidance to 30-32% from 30%. However, this is expected to slow to 25-27% in 2013.

The group said its capex programme will total $1.6-1.7bn for the full-year and $1.6-1.8bn in 2013, while EBITDA margin is seen at 9-9.5%. No guidance was given for 2013.

Last month, Magnit 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.

Magnit's share price was down 1.94% to 4,398.00 roubles at 10:27 BST today on the Moscow Stock Exchange and was at $36.56 in dollar terms on the London Stock Exchange.

Click here to read a recent exclusive just-food interview with Magnit's deputy CEO Oleg Goncharov.