Store opening costs have hit the bottom line at Russian retailer Magnit in the first nine months of the year, although it saw its EBIT rise.
The company today (28 October) posted a 2.7% fall in net profit to RUB6.98bn (US$235.1m) for the nine months to the end of September.
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A spokesperson for Magnit pointed to “high depreciation and amortisation” after Magnit opened “many hypermarkets and three distribution centres this year”.
However, Magnit’s EBIT was up 16.1% at RUB11.68bn as sales jumped 46% to RUB240.18bn.
Nevertheless, Magnit’s like-for-like sales growth slowed in the third quarter of the year. Like-for-like sales were up 7.6% in the quarter, compared to 14.3% during the first nine months of 2011.
Traffic fell 1.7% in the quarter but was up 2.4% over the nine months to the end of September.
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By GlobalDataThe Magnit spokesperson said the dip in traffic was due to the retailer’s decision increased prices in July and at the start of August. However, it “returned to the original prices” in the middle of August.
The average ticket, excluding VAT, increased 9.4%, although it was up 11.6% in nine-month period.
