Press Release
Krasnodar
October 11, 2016
Magnit Announces 13.68% Retail Sales Growth in Rubles for September 2016[1]
Krasnodar, Russia (October 11, 2016): Magnit PJSC, one of Russia's leading retailers (the "Company"; MOEX and LSE: MGNT), announces 13.68% retail sales growth in rubles for September 2016.
During September 2016 the Company opened (net) 123 stores. The total store base reached 13,364 stores (10,138 convenience stores, 228 hypermarkets, 179 "Magnit Family" stores and 2,819 drogerie stores).
Preliminary consolidated unaudited net retail revenue (excl. VAT) in 9M 2016 increased by 14.24% in ruble terms (compared to 9M 2015) and stood at 786,741.14 million rubles.
According to Rosstat, general inflation in September 2016 stood at 0.2% compared to 0.6% in September 2015, in 9M 2016 it was 4.1% compared to 10.4% in 9M 2015.
Food inflation in September 2016 was -0.1% compared to 0.4% in September 2015, in 9M 2016 it was 2.4% compared to 10.2% in 9M 2015.
September 2016 Key Operating and Financial Highlights:
| September 2016 | September 2015 | Growth Rate | |
| Number of opened stores, NET | 123 | 218 | n/a |
| convenience stores | 66 | 119 | n/a |
| hypermarkets | (3) | 1 | n/a |
| magnit family | 3 | 5 | n/a |
| drogerie stores | 57 | 93 | n/a |
| Total number of stores | 13,364 | 11,388 | n/a |
| convenience stores | 10,138 | 9,246 | n/a |
| hypermarkets | 228 | 208 | n/a |
| magnit family | 179 | 127 | n/a |
| drogerie stores | 2,819 | 1,807 | n/a |
| Selling space, eop, th. sq. m. | 4,825.39 | 4,154.99 | 16.13% |
| convenience stores | 3,319.80 | 2,997.30 | 10.76% |
| hypermarkets | 659.37 | 604.96 | 8.99% |
| magnit family | 196.31 | 139.82 | 40.40% |
| drogerie stores | 649.91 | 412.92 | 57.40% |
| Selling space growth, th. sq.m. | 33.59 | 73.90 | n/a |
| convenience stores | 22.65 | 46.01 | n/a |
| hypermarkets | (6.09) | 1.84 | n/a |
| magnit family | 3.04 | 4.91 | n/a |
| drogerie stores | 13.99 | 21.15 | n/a |
| Number of customers, million | 313.03 | 279.58 | 11.96% |
| convenience stores | 263.73 | 237.62 | 10.99% |
| hypermarkets | 20.54 | 20.71 | (0.84)% |
| magnit family | 10.41 | 8.47 | 22.87% |
| drogerie stores | 18.35 | 12.78 | 43.55% |
| Net retail sales, million RUR | 84,234.81 | 74,098.54 | 13.68% |
| convenience stores | 62,339.79 | 55,151.39 | 13.03% |
| hypermarkets | 11,846.37 | 11,762.88 | 0.71% |
| magnit family | 4,462.87 | 3,510.84 | 27.12% |
| drogerie stores | 5,585.78 | 3,673.43 | 52.06% |
| Net retail sales, million US$[2] | 1,303.92 | 1,109.68 | 17.50% |
| convenience stores | 964.99 | 825.93 | 16.84% |
| hypermarkets | 183.38 | 176.16 | 4.10% |
| magnit family | 69.08 | 52.58 | 31.39% |
| drogerie stores | 86.47 | 55.01 | 57.18% |
3Q and 9M 2016 Key Operating and Financial Highlights:
| 3Q 2016 | 3Q 2015 | Growth Rate | 9M 2016 | 9M 2015 | Growth Rate | |
| Number of opened stores, NET | 476 | 660 | n/a | 1,275 | 1,677 | n/a |
| convenience stores | 236 | 356 | n/a | 544 | 902 | n/a |
| hypermarkets | 0 | 7 | n/a | 9 | 18 | n/a |
| magnit family | 9 | 17 | n/a | 24 | 30 | n/a |
| drogerie stores | 231 | 280 | n/a | 698 | 727 | n/a |
| Total number of stores | 13,364 | 11,388 | n/a | 13,364 | 11,388 | n/a |
| convenience stores | 10,138 | 9,246 | n/a | 10,138 | 9,246 | n/a |
| hypermarkets | 228 | 208 | n/a | 228 | 208 | n/a |
| magnit family | 179 | 127 | n/a | 179 | 127 | n/a |
| drogerie stores | 2,819 | 1,807 | n/a | 2,819 | 1,807 | n/a |
| Selling space, eop, th. sq. m. | 4,825.39 | 4,154.99 | 16.13% | 4,825.39 | 4,154.99 | 16.13% |
| convenience stores | 3,319.80 | 2,997.30 | 10.76% | 3,319.80 | 2,997.30 | 10.76% |
| hypermarkets | 659.37 | 604.96 | 8.99% | 659.37 | 604.96 | 8.99% |
| magnit family | 196.31 | 139.82 | 40.40% | 196.31 | 139.82 | 40.40% |
| drogerie stores | 649.91 | 412.92 | 57.40% | 649.91 | 412.92 | 57.40% |
| Selling space growth, th. sq.m. | 148.19 | 226.99 | n/a | 411.67 | 564.35 | n/a |
| convenience stores | 83.67 | 131.05 | n/a | 200.24 | 323.99 | n/a |
| hypermarkets | (1.14) | 15.15 | n/a | 20.23 | 45.87 | n/a |
| magnit family | 9.26 | 17.09 | n/a | 26.13 | 30.75 | n/a |
| drogerie stores | 56.39 | 63.71 | n/a | 165.07 | 163.75 | n/a |
| Number of customers, million | 985.87 | 863.42 | 14.18% | 2,850.44 | 2,481.04 | 14.89% |
| convenience stores | 831.52 | 732.07 | 13.58% | 2,410.80 | 2,119.29 | 13.76% |
| hypermarkets | 65.78 | 66.38 | (0.90)% | 198.05 | 194.29 | 1.94% |
| magnit family | 33.02 | 25.89 | 27.51% | 94.40 | 71.22 | 32.55% |
| drogerie stores | 55.55 | 39.08 | 42.15% | 147.19 | 96.24 | 52.94% |
| Net retail sales, million RUR | 267,282.34 | 234,950.17 | 13.76% | 786,741.14 | 688,648.23 | 14.24% |
| convenience stores | 197,689.55 | 173,911.85 | 13.67% | 582,716.99 | 512,345.61 | 13.74% |
| hypermarkets | 38,338.25 | 38,897.03 | (1.44)% | 117,294.28 | 118,268.16 | (0.82)% |
| magnit family | 14,255.56 | 10,979.38 | 29.84% | 41,748.97 | 31,316.20 | 33.31% |
| drogerie stores | 16,998.98 | 11,161.91 | 52.29% | 44,980.90 | 26,718.26 | 68.35% |
| Net retail sales, million US$[3] | 4,135.93 | 3,730.65 | 10.86% | 11,507.66 | 11,617.32 | (0.94)% |
| convenience stores | 3,059.05 | 2,761.45 | 10.78% | 8,523.40 | 8,643.14 | (1.39)% |
| hypermarkets | 593.25 | 617.62 | (3.95)% | 1,715.66 | 1,995.15 | (14.01)% |
| magnit family | 220.59 | 174.34 | 26.53% | 610.66 | 528.30 | 15.59% |
| drogerie stores | 263.04 | 177.23 | 48.42% | 657.94 | 450.73 | 45.97% |
LFL results
| Formats | 3Q 2016 - 3Q 2015[4] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,694 | (0.14)% | 3.88% | 3.73% |
| Hypermarkets | 204 | 0.67% | (8.80)% | (8.20)% |
| Magnit Family | 119 | 0.06% | (5.65)% | (5.59)% |
| Drogeries | 1,639 | 7.19% | (4.00)% | 2.90% |
| Total | 10,656 | (0.98)% | 2.24% | 1.23% |
| Formats | 9M 2016 - 9M 2015[4] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,486 | (0.29)% | 2.88% | 2.59% |
| Hypermarkets | 203 | (1.44)% | (8.28)% | (9.60)% |
| Magnit Family | 119 | (1.48)% | (4.70)% | (6.12)% |
| Drogeries | 1,606 | 9.34% | (3.91)% | 5.07% |
| Total | 10,414 | (1.37)% | 1.48% | 0.09% |
For further information, please contact:
| Timothy Post | Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 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:
Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of September 30, 2016, Magnit operated 33 distribution centers and 13,364 stores (10,138 convenience, 407 hypermarkets and 2,819 drogerie stores) in 2,436 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the reviewed IFRS consolidated financial statements for 1H 2016, Magnit had revenues of RUB 522 billion and an EBITDA of RUB 52 billion. Magnit's local shares are traded on the Moscow 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 September 2016 - 64.6012 RUB per 1 USD, September 2015 - 66.7749 RUB per 1 USD
[3] Based on the average exchange rate for 3Q 2016 - 64.6245 RUB per 1 USD, 3Q 2015 - 62.9784 RUB per 1 USD, 9M 2016 - 68.3667 RUB per 1 USD, 9M 2015 - 59.2777 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 September 1, 2015.
