Press-release
Krasnodar
July 11, 2016
PJSC "Magnit" Announces 13.50% Retail Sales Growth in Rubles for June 2016[1]
Krasnodar, July 11, 2016: PJSC "Magnit", Russia's largest food retailer (the "Company"; MOEX and LSE: MGNT) announces 13.50% retail sales growth in rubles for June 2016.
During June 2016 the Company opened (net) 101 stores. The total store base reached 12,888 stores (9,902 convenience stores, 228 hypermarkets, 170 "Magnit Family" stores and 2,588 drogerie stores).
Preliminary consolidated unaudited net retail revenue (excl. VAT) in 6M 2016 increased by 14.49% in ruble terms (compared to 6M 2015) and stood at 519,458.80 million rubles.
According to Rosstat, general inflation in June 2016 amounted to 0.4% compared to 0.2% in June 2015, in 6M 2016 it was 3.3% compared to 8.5% in 6M 2015.
Food inflation in June 2016 amounted to 0.1% compared to -0.4% in June 2015, in 6M 2016 it was 3.2% compared to 10.8% in 6M 2015.
June 2016 Key Operating and Financial Highlights:
| June 2016 | June 2015 | Growth Rate | |
| Number of opened stores, NET | 101 | 191 | n/a |
| convenience stores | 32 | 99 | n/a |
| hypermarkets | 1 | 1 | n/a |
| magnit family | 3 | 3 | n/a |
| drogerie stores | 65 | 88 | n/a |
| Total number of stores | 12,888 | 10,728 | n/a |
| convenience stores | 9,902 | 8,890 | n/a |
| hypermarkets | 228 | 201 | n/a |
| magnit family | 170 | 110 | n/a |
| drogerie stores | 2,588 | 1,527 | n/a |
| Selling space, eop, th. sq. m. | 4,677.20 | 3,928.00 | 19.07% |
| convenience stores | 3,236.13 | 2,866.25 | 12.90% |
| hypermarkets | 660.51 | 589.81 | 11.99% |
| magnit family | 187.05 | 122.73 | 52.41% |
| drogerie stores | 593.52 | 349.21 | 69.96% |
| Selling space growth, th. sq.m. | 33.94 | 59.99 | n/a |
| convenience stores | 13.58 | 35.36 | n/a |
| hypermarkets | 2.08 | 2.50 | n/a |
| magnit family | 3.76 | 2.79 | n/a |
| drogerie stores | 14.53 | 19.34 | n/a |
| Number of customers, million | 326.76 | 288.10 | 13.42% |
| convenience stores | 277.28 | 245.89 | 12.76% |
| hypermarkets | 22.15 | 22.43 | (1.28)% |
| magnit family | 10.70 | 8.30 | 28.91% |
| drogerie stores | 16.64 | 11.48 | 44.98% |
| Net retail sales, million RUR | 89,121.56 | 78,520.27 | 13.50% |
| convenience stores | 66,376.81 | 58,566.94 | 13.33% |
| hypermarkets | 13,027.85 | 13,307.58 | (2.10)% |
| magnit family | 4,664.21 | 3,555.55 | 31.18% |
| drogerie stores | 5,052.68 | 3,090.20 | 63.51% |
| Net retail sales, million US$[2] | 1,364.54 | 1,440.51 | (5.27)% |
| convenience stores | 1,016.30 | 1,074.45 | (5.41)% |
| hypermarkets | 199.47 | 244.14 | (18.30)% |
| magnit family | 71.41 | 65.23 | 9.48% |
| drogerie stores | 77.36 | 56.69 | 36.46% |
2Q and 6M 2016 Key Operating and Financial Highlights:
| 2Q 2016 | 2Q 2015 | Growth Rate | 6M 2016 | 6M 2015 | Growth Rate | |
| Number of opened stores, NET | 454 | 608 | n/a | 799 | 1,017 | n/a |
| convenience stores | 187 | 309 | n/a | 308 | 546 | n/a |
| hypermarkets | 3 | 5 | n/a | 9 | 11 | n/a |
| magnit family | 13 | 6 | n/a | 15 | 13 | n/a |
| drogerie stores | 251 | 288 | n/a | 467 | 447 | n/a |
| Total number of stores | 12,888 | 10,728 | n/a | 12,888 | 10,728 | n/a |
| convenience stores | 9,902 | 8,890 | n/a | 9,902 | 8,890 | n/a |
| hypermarkets | 228 | 201 | n/a | 228 | 201 | n/a |
| magnit family | 170 | 110 | n/a | 170 | 110 | n/a |
| drogerie stores | 2,588 | 1,527 | n/a | 2,588 | 1,527 | n/a |
| Selling space, eop, th. sq. m. | 4,677.20 | 3,928.00 | 19.07% | 4,677.20 | 3,928.00 | 19.07% |
| convenience stores | 3,236.13 | 2,866.25 | 12.90% | 3,236.13 | 2,866.25 | 12.90% |
| hypermarkets | 660.51 | 589.81 | 11.99% | 660.51 | 589.81 | 11.99% |
| magnit family | 187.05 | 122.73 | 52.41% | 187.05 | 122.73 | 52.41% |
| drogerie stores | 593.52 | 349.21 | 69.96% | 593.52 | 349.21 | 69.96% |
| Selling space growth, th. sq.m. | 153.57 | 195.27 | n/a | 263.48 | 337.36 | n/a |
| convenience stores | 73.25 | 111.56 | n/a | 116.57 | 192.94 | n/a |
| hypermarkets | 6.86 | 12.78 | n/a | 21.37 | 30.72 | n/a |
| magnit family | 15.02 | 6.61 | n/a | 16.87 | 13.66 | n/a |
| drogerie stores | 58.45 | 64.31 | n/a | 108.68 | 100.04 | n/a |
| Number of customers, million | 971.04 | 851.22 | 14.08% | 1,864.57 | 1,617.61 | 15.27% |
| convenience stores | 825.26 | 729.07 | 13.19% | 1,579.27 | 1,387.21 | 13.84% |
| hypermarkets | 66.86 | 66.90 | (0.07)% | 132.27 | 127.91 | 3.41% |
| magnit family | 31.72 | 24.43 | 29.85% | 61.38 | 45.32 | 35.43% |
| drogerie stores | 47.21 | 30.82 | 53.18% | 91.64 | 57.17 | 60.31% |
| Net retail sales, million RUR | 265,023.79 | 235,466.29 | 12.55% | 519,458.80 | 453,698.06 | 14.49% |
| convenience stores | 197,517.70 | 175,837.63 | 12.33% | 385,027.44 | 338,433.76 | 13.77% |
| hypermarkets | 39,483.14 | 40,640.38 | (2.85)% | 78,956.03 | 79,371.13 | (0.52)% |
| magnit family | 13,978.32 | 10,734.92 | 30.21% | 27,493.41 | 20,336.82 | 35.19% |
| drogerie stores | 14,044.64 | 8,253.35 | 70.17% | 27,981.92 | 15,556.35 | 79.87% |
| Net retail sales, million US$[3] | 4,022.32 | 4,471.93 | (10.05)% | 7,393.56 | 7,904.59 | (6.46)% |
| convenience stores | 2,997.77 | 3,339.47 | (10.23)% | 5,480.17 | 5,896.39 | (7.06)% |
| hypermarkets | 599.24 | 771.83 | (22.36)% | 1,123.80 | 1,382.85 | (18.73)% |
| magnit family | 212.15 | 203.88 | 4.06% | 391.32 | 354.32 | 10.44% |
| drogerie stores | 213.16 | 156.75 | 35.99% | 398.27 | 271.03 | 46.95% |
LFL results
| Formats | 2Q 2016 - 2Q 2015[4] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,413 | (1.00)% | 2.05% | 1.02% |
| Hypermarkets | 199 | (1.17)% | (10.08)% | (11.12)% |
| Magnit Family | 106 | (1.04)% | (6.60)% | (7.57)% |
| Drogeries | 1,376 | 10.17% | (5.33)% | 4.30% |
| Total | 10,094 | (1.95)% | 0.55% | (1.41)% |
| Formats | 6M 2016 - 6M 2015[4] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,329 | (0.36)% | 2.21% | 1.85% |
| Hypermarkets | 198 | (2.48)% | (7.86)% | (10.15)% |
| Magnit Family | 106 | (2.31)% | (4.03)% | (6.25)% |
| Drogeries | 1,361 | 10.86% | (4.00)% | 6.42% |
| Total | 9,994 | (1.51)% | 1.00% | (0.52)% |
For further information, please contact:
| Timothy Post | Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562 |
| Investor Relations Office | MagnitIR@magnit.ru Direct Line: +7-861-277-4562 Website: ir.magnit.com/ |
| Media Inquiries | Media Relations Department press@magnit.ru |
Company description:
Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of June 30, 2016, Magnit operated 34 distribution centers and 12,888 stores (9,902 convenience, 398 hypermarkets, and 2,588 drogerie stores) in 2,397 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS results for 2015, Magnit had revenues of RUB 951 billion and an EBITDA of RUB 104 billion. Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.
[1] According to management accounts
[2] Based on the average exchange rate for June 2016 - 65.3124 RUB per 1 USD, June 2015 - 54.5086 RUB per 1 USD
[3] Based on the average exchange rate for 2Q 2016 - 65.8883 RUB per 1 USD, 2Q 2015 - 52.6543 RUB per 1 USD, 6M 2016 - 70.2583 RUB per 1 USD, 6M 2015 - 57.3968 RUB per 1 USD
[4] LFL calculation base includes stores (all formats), which have been opened 12 months prior to the last month of the reporting period. i.e. by June 1, 2015.
