Russian grocery chain Magnit said it is “satisfied” with its 2009 results as it booked an increase in full-year net income.
For the year ended 31 December, the firm earned RUR8.73bn (US$275.1m), an increase of 86.9% on the previous year.
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EBITDA jumped by 61.9% to RUR16.16bn for the 12-month period.
Revenue increased by 27.8% year-on-year to RUR169.86bn. The top line growth was due to an increase in selling space, as well as to a 4.1% increase in like-for-like sales.
CEO Sergey Galitsky said: “We are satisfied by the 2009 results. Despite active expansion of the company, including record number of convenience store openings, we achieved good EBITDA margin and net profit results. Autumn offering enabled to end the year with extremely low net debt to EBITDA ratio.”
He added: “In 2010 the company will continue its active work with the operating efficiency of the business, and moreover, investments in traffic on competitive markets will become one of the company’s main focuses.”
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By GlobalDataDuring 2009, Magnit added 646 stores (636 convenience stores and 10 hypermarkets) and increased its selling space by 28.7% in comparison to 2008 to 1,059.87 thousand sq m.
Galitsky said the firm will invest $1bn on expansion in the current year.
“This amount anticipates serious efforts on our part. We will work hard to achieve the target goals,” he added.
