RUSSIA: Q3 LFL sales accelerate at retailer Magnit

By Dean Best | 11 October 2012

  • Q3 LFL sales up over 7%
  • Net sales increased 33% in 9M
  • Opened 810 stores
Magnit LFL sales up 7% in Q3

Magnit LFL sales up 7% in Q3

Russian retailer Magnit saw its underlying sales accelerate in the third quarter of the year.

Magnit reported a 7.1% increase in like-for-like sales for the three months to the end of September. Traffic and the average ticket were both up.

In the first nine months of the year, like-for-like sales grew 4.6%, with the average ticket up but traffic down.

Net retail sales climbed 33% in the nine months to the end of September to RUR319.3bn (US$10.26bn). During the period, Magnit opened 810 stores, taking it to over 6,100 outlets in Russia.

Show the press release

 

Press-release

Krasnodar

October 10, 2012

OJSC "Magnit" announces 36% retail sales growth in rubles in September 2012

Krasnodar, October 10, 2012: OJSC "Magnit" (the "Company"; MICEX
and LSE: MGNT) announces 36% retail sales growth in rubles in September
2012[1].

During 9M 2012 the Company opened (net) 810 stores. The total store
base reached 6,119 stores (5,523 convenience stores, 105 hypermarkets, 11
"Magnit Family" stores and 480 cosmetics stores). Preliminary consolidated
unaudited net retail revenue (excl. VAT) in 9M 2012 increased by 33.00% in
ruble terms (compared to 9M 2011) and stood at 319,332.35 million rubles.

September 2012 Key Operating and Financial Highlights:

                                  September 2012 September 2011  Growth Rate    9M 2012      9M 2011     Growth Rate
Number of opened stores, NET                 145            108           n/a          810          712           n/a
               convenience stores             98             77           n/a          517          591           n/a
                     hypermarkets              0              2           n/a           15           23           n/a
                    magnit family              3              0           n/a            8            2           n/a
                 cosmetics stores             44             29           n/a          270           96           n/a
 
Total number of stores                     6,119          4,767           n/a        6,119        4,767           n/a
               convenience stores          5,523          4,593           n/a        5,523        4,593           n/a
                     hypermarkets            105             73           n/a          105           73           n/a
                    magnit family             11              3           n/a           11            3           n/a
                 cosmetics stores            480             98           n/a          480           98           n/a
 
Selling space, thousand sq. m.          2,260.88       1,740.42        29.90%     2,260.88     1,740.42        29.90%
               convenience stores       1,813.42       1,487.57        21.91%     1,813.42     1,487.57        21.91%
                     hypermarkets         324.68         226.55        43.31%       324.68       226.55        43.31%
                    magnit family          13.63           3.80           n/a        13.63         3.80           n/a
                 cosmetics stores         109.14          22.50           n/a       109.14        22.50           n/a
 
Number of customers, million              168.81         135.81        24.30%     1,483.99     1,198.66        23.80%
               convenience stores         154.24         127.46        21.01%     1,366.55     1,134.82        20.42%
                     hypermarkets          11.53           7.66        50.58%        98.22        61.16        60.61%
                    magnit family           0.86           0.26           n/a         4.53         1.39           n/a
                 cosmetics stores           2.17           0.43           n/a        14.69         1.30           n/a

                                  September 2012 September 2011  Growth Rate     9M 2012      9M 2011    Growth Rate
Net retail sales, million RUR          36,129.07      26,540.69         36.13%   319,332.35   240,107.15       33.00%
               convenience stores      29,206.43      22,528.73         29.64%   261,755.27   208,071.61       25.80%
                     hypermarkets       6,103.92       3,831.69         59.30%    52,537.48    31,259.84       68.07%
                    magnit family         293.36          89.19            n/a     1,514.72       511.55          n/a
                 cosmetics stores         525.35          91.08            n/a     3,524.88       264.15          n/a
 
Net retail sales, million US$[2]        1,145.84         869.84         31.73%    10,268.45     8,346.79       23.02%
               convenience stores         926.29         738.35         25.45%     8,417.00     7,233.15       16.37%
                     hypermarkets         193.59         125.58         54.15%     1,689.39     1,086.68       55.46%
                    magnit family           9.30           2.92            n/a        48.71        17.78          n/a
                 cosmetics stores          16.66           2.98            n/a       113.35         9.18          n/a

LFL results

LFL growth 9M 2012 - 9M 2011[3]                  Convenience stores         Hypermarkets                Total
Average ticket (excluding VAT), RUR                     5.02%                   3.29%                   5.04%
Traffic                                                (0.54)%                  2.38%                  (0.42)%
Revenue, RUR                                            4.45%                   5.74%                   4.60%
LFL growth 3Q 2012 to 3Q 2011[4]                 Convenience stores         Hypermarkets                Total
Average ticket (excluding VAT), RUR                     6.10%                   4.87%                   6.28%
Traffic                                                 0.56%                   4.70%                   0.73%
Revenue, RUR                                            6.70%                   9.80%                   7.05%



For further information, please contact:

Oleg Goncharov                                              Director, Investor Relations
                                                            e-mail: Goncharov@gw.tander.ru
                                                            Tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5100
                                                            Mob.: +7 (903) 411-40-35
 
                                                            Direct line for investors only: +7 (861) 277-45-62
Dina Svishcheva                                             Manager, Investor Relations
                                                            e-mail: Chistyak@gw.tander.ru
                                                            Tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5101
                                                            Mob.: +7-961-511-02-02
                                                            Direct line for investors only: +7 (861) 277-45-62

Company description:

Based in Krasnodar, in the Southern region of Russia, Open Joint
Stock Company "Magnit" (LSE and MICEX: MGNT, S&P: "BB-") is the holding
company for a group of entities that operate in the retail trade under the
"Magnit" brand. The chain of "Magnit" stores is one of the leading food retail
networks in Russia. As of September 30, 2012 the chain consisted of 5,523
convenience stores, 105 hypermarkets, 11 "Magnit Family" stores and 480
cosmetics stores (drogerie) in 1,504 locations in the Russian Federation.

Approximately two-thirds of the Company's stores are located in
cities with a population of less than 500,000 inhabitants. Most of its stores
are located in the Southern, North-Caucasian, Central and Volga regions. The
Company also operates stores in the North-Western, Urals and Siberian regions.

As of September 30, 2012 the Company operated an in-house logistics
system consisting of 17 distribution centers, employing automated stock
replenishment systems and a fleet of 4,082 vehicles.

In accordance with the reviewed IFRS consolidated financial
statements for 1H 2012, the Company recorded consolidated revenue of
approximately US$ 6,776 million and consolidated EBITDA of around US$ 671
million.

---------------------------------

[1] According to management accounts

[2] Based on the average exchange rate for September 2012 of 31.5307 RUB per 1
USD, September 2011 - 30.5121 RUB per 1 USD, 9? 2012 - 31.0984 RUB per 1 USD,
9M 2011 - 28.7664 RUB per 1 USD

[3] Based on 2,576 convenience stores which were opened by July 1,
2010, and 25 hypermarkets which were opened by May 1, 2010, i.e. based on the
result of the convenience stores that had been operating for not less than six
months and hypermarkets that had been operating for not less than eight months
and have achieved a mature level of sales

[4] Based on 3,546 convenience stores which were opened by October
01, 2010, and 35 hypermarkets which were opened by August 01, 2010, i.e. based
on the result of the convenience stores that had been operating for not less
than six months and hypermarkets that had been operating for not less than
eight months and have achieved a mature level of sales.

 

Original source: Magnit

Sectors: Emerging markets, Financials, Retail

Companies: Magnit

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