RUSSIA: Seventh Continent books mixed H1
Russian retailer Seventh Continent has posted a mixed set of first-half results, reporting a rise in sales but a fall in half-year net profits.
The company said today (6 October) that it saw net sales jump 33% to US$791.4m during the first six months of the year.
Gross profit climbed 29% to $227.5m, but gross margins dipped to 28.7% compared to the 29.7% margin seen in the first half of last year.
The company said the drop in margin was the result of the expansion drive at its hypermarket unit, including the opening of three new hypermarkets in the half.
First-half consolidated EBITDA was up 3% at $66.8m but net income dropped 19% to $42.3m, Seventh Continent said.
Stripping out the impact of Finservice bank, Seventh Continent's bankinbg venture on the results, EBITDA rose 14% to $72.6m. Net income was down 9% at $47m.
Officials at Seventh Continent could not be reached for further comment as just-food went to press.
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