Magnit has said that its first half revenues have jumped 31.84% year-on-year, as the company benefited from increased selling space, helping to offset a fall in margins.

The six month revenues reached RUB103.66bn (US$3.37bn).

“The top line growth was due to an increase in selling space as well as to a 4.93% increase of like-for-like sales (excl. VAT),” the company said.

Gross margin reduced from 23.3% in the first half of 2009 to 21.48% in the 2010 period due to “continued large-scale price investments”.

EBITDA increased by 2.09% to RUB7.57bn. Net income increased by 1.17% and amounted to RUB3.94bn.

Sergey Galitsky, the company’s CEO, said: “Results are in line with our expectations and reflect continued aggressive pricing policy in the second quarter of 2010. Positive LFL traffic and average ticket trends instill optimism and confidence in the targeted sales growth of 35% in ruble terms at the year end.”

Further details of Magnit’s results can be found here.