Russian retailer Seventh Continent booked a drop in net income for the third quarter on an increase in interest expenses and exchange rate losses.

Net profit for the period fell 43% to US$8.9m compared to the same period last year.

Net sales grew 34% to $395.5m from $295.3m for the comparable period last year. Food and non-food sales accounted for 95% of total revenues. Marketing rental and other revenues comprised 5% of total revenues for the nine month period.

Operating and financial income from banking activities stood at $7.2m for the third quarter, while operating and financial expenses from banking activities amounted to $9.1m.

The company's net profit under IFRS fell 25% to $51.3m in the first nine months of 2008 compared to the same period a year before.

Net sales for the same period grew 34% reaching $395.5m.