Press Release
Krasnodar
January 10, 2017
Magnit Announces 6.91% Retail Sales Growth in Rubles for December 2016[1]
Krasnodar, Russia (January 10, 2017): Magnit PJSC, one of Russia's leading retailers (the "Company"; MOEX and LSE: MGNT), announces 6.91% retail sales growth in rubles for December 2016.
During December 2016 the Company opened (net) 245 stores. The total store base reached 14,059 stores (10,521 convenience stores, 237 hypermarkets, 194 "Magnit Family" stores and 3,107 drogerie stores).
Preliminary consolidated unaudited net retail revenue (excl. VAT) in 12M 2016 increased by 12.81% in ruble terms (compared to 12M 2015) and stood at 1,069,205.85 million rubles.
December 2016 Key Operating and Financial Highlights:
| December 2016 | December 2015 | Growth Rate | |
| Number of opened stores, NET | 245 | 164 | n/a |
| convenience stores | 128 | 69 | n/a |
| hypermarkets | 7 | 2 | n/a |
| magnit family | 9 | 17 | n/a |
| drogerie stores | 101 | 76 | n/a |
| Total number of stores | 14,059 | 12,089 | n/a |
| convenience stores | 10,521 | 9,594 | n/a |
| hypermarkets | 237 | 219 | n/a |
| magnit family | 194 | 155 | n/a |
| drogerie stores | 3,107 | 2,121 | n/a |
| Selling space, eop, th. sq. m. | 5,067.67 | 4,413.72 | 14.82% |
| convenience stores | 3,452.40 | 3,119.56 | 10.67% |
| hypermarkets | 683.67 | 639.14 | 6.97% |
| magnit family | 212.76 | 170.18 | 25.02% |
| drogerie stores | 718.84 | 484.84 | 48.26% |
| Selling space growth, th. sq. m. | 98.39 | 68.63 | n/a |
| convenience stores | 43.50 | 24.11 | n/a |
| hypermarkets | 20.77 | 9.04 | n/a |
| magnit family | 10.44 | 17.83 | n/a |
| drogerie stores | 23.68 | 17.65 | n/a |
| Number of customers, million | 340.76 | 326.15 | 4.48% |
| convenience stores | 281.87 | 271.14 | 3.96% |
| hypermarkets | 23.50 | 26.61 | (11.69)% |
| magnit family | 11.86 | 11.41 | 3.91% |
| drogerie stores | 23.53 | 16.99 | 38.51% |
| Net retail sales, million RUR | 108,966.00 | 101,922.70 | 6.91% |
| convenience stores | 78,020.88 | 71,908.81 | 8.50% |
| hypermarkets | 16,704.25 | 18,505.93 | (9.74)% |
| magnit family | 6,126.72 | 5,844.09 | 4.84% |
| drogerie stores | 8,114.15 | 5,663.87 | 43.26% |
| Net retail sales, million US$[2] | 1,751.85 | 1,462.72 | 19.77% |
| convenience stores | 1,254.34 | 1,031.98 | 21.55% |
| hypermarkets | 268.55 | 265.58 | 1.12% |
| magnit family | 98.50 | 83.87 | 17.44% |
| drogerie stores | 130.45 | 81.28 | 60.49% |
4Q and 12M 2016 Key Operating and Financial Highlights:
| 4Q 2016 | 4Q 2015 | Growth Rate | 12M 2016 | 12M 2015 | Growth Rate | |
| Number of opened stores, NET | 695 | 701 | n/a | 1,970 | 2,378 | n/a |
| convenience stores | 383 | 348 | n/a | 927 | 1,250 | n/a |
| hypermarkets | 9 | 11 | n/a | 18 | 29 | n/a |
| magnit family | 15 | 28 | n/a | 39 | 58 | n/a |
| drogerie stores | 288 | 314 | n/a | 986 | 1,041 | n/a |
| Total number of stores | 14,059 | 12,089 | n/a | 14,059 | 12,089 | n/a |
| convenience stores | 10,521 | 9,594 | n/a | 10,521 | 9,594 | n/a |
| hypermarkets | 237 | 219 | n/a | 237 | 219 | n/a |
| magnit family | 194 | 155 | n/a | 194 | 155 | n/a |
| drogerie stores | 3,107 | 2,121 | n/a | 3,107 | 2,121 | n/a |
| Selling space, eop, th. sq. m. | 5,067.67 | 4,413.72 | 14.82% | 5,067.67 | 4,413.72 | 14.82% |
| convenience stores | 3,452.40 | 3,119.56 | 10.67% | 3,452.40 | 3,119.56 | 10.67% |
| hypermarkets | 683.67 | 639.14 | 6.97% | 683.67 | 639.14 | 6.97% |
| magnit family | 212.76 | 170.18 | 25.02% | 212.76 | 170.18 | 25.02% |
| drogerie stores | 718.84 | 484.84 | 48.26% | 718.84 | 484.84 | 48.26% |
| Selling space growth, th. sq. m. | 242.28 | 258.73 | n/a | 653.95 | 823.08 | n/a |
| convenience stores | 132.60 | 122.26 | n/a | 332.84 | 446.25 | n/a |
| hypermarkets | 24.30 | 34.18 | n/a | 44.53 | 80.05 | n/a |
| magnit family | 16.45 | 30.36 | n/a | 42.58 | 61.11 | n/a |
| drogerie stores | 68.93 | 71.92 | n/a | 234.00 | 235.67 | n/a |
| Number of customers, million | 966.69 | 895.82 | 7.91% | 3,817.13 | 3,376.86 | 13.04% |
| convenience stores | 809.30 | 754.72 | 7.23% | 3,220.10 | 2,874.00 | 12.04% |
| hypermarkets | 64.05 | 68.76 | (6.86)% | 262.10 | 263.05 | (0.36)% |
| magnit family | 32.60 | 29.08 | 12.10% | 127.00 | 100.30 | 26.62% |
| drogerie stores | 60.74 | 43.26 | 40.39% | 207.93 | 139.51 | 49.04% |
| Net retail sales, million RUR | 282,464.71 | 259,152.76 | 9.00% | 1,069,205.85 | 947,800.99 | 12.81% |
| convenience stores | 207,440.08 | 188,929.34 | 9.80% | 790,157.07 | 701,274.95 | 12.67% |
| hypermarkets | 40,394.25 | 43,310.51 | (6.73)% | 157,688.53 | 161,578.67 | (2.41)% |
| magnit family | 15,161.85 | 13,509.11 | 12.23% | 56,910.82 | 44,825.31 | 26.96% |
| drogerie stores | 19,468.53 | 13,403.80 | 45.25% | 64,449.43 | 40,122.06 | 60.63% |
| Net retail sales, million US$[3] | 4,478.70 | 3,929.93 | 13.96% | 15,949.99 | 15,548.45 | 2.58% |
| convenience stores | 3,289.12 | 2,865.02 | 14.80% | 11,787.25 | 11,504.25 | 2.46% |
| hypermarkets | 640.48 | 656.78 | (2.48)% | 2,352.33 | 2,650.66 | (11.25)% |
| magnit family | 240.40 | 204.86 | 17.35% | 848.97 | 735.35 | 15.45% |
| drogerie stores | 308.69 | 203.26 | 51.87% | 961.43 | 658.19 | 46.07% |
LFL results
| Formats | 4Q 2016 - 4Q 2015[4] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 9,020 | 1.99% | (0.68)% | 1.30% |
| Hypermarkets | 214 | 1.00% | (12.23)% | (11.35)% |
| Magnit Family | 133 | 0.06% | (9.79)% | (9.74)% |
| Drogeries | 1,967 | 3.91% | 0.37% | 4.29% |
| Total | 11,334 | 0.56% | (1.84)% | (1.30)% |
| Formats | 12M 2016 - 12M 2015[4] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,663 | 0.32% | 2.05% | 2.38% |
| Hypermarkets | 211 | (0.85)% | (9.32)% | (10.09)% |
| Magnit Family | 133 | (1.08)% | (6.04)% | (7.05)% |
| Drogeries | 1,911 | 7.55% | (2.50)% | 4.87% |
| Total | 10,918 | (0.90)% | 0.65% | (0.26)% |
For further information, please contact:
| Timothy Post | Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 |
| 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 December 31, 2016, Magnit operated 35 distribution centers and 14,059 stores (10,521 convenience, 431 hypermarkets and 3,107 drogerie stores) in 2,495 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 December 2016 - 62.2006 RUB per 1 USD, December 2015 - 69.6801 RUB per 1 USD
[3] Based on the average exchange rate for 4Q 2016 - 63.0685 RUB per 1 USD, 4Q 2015 - 65.9434 RUB per 1 USD, 12M 2016 - 67.0349 RUB per 1 USD, 12M 2015 - 60.9579 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 December 1, 2015.
