Press-release
Krasnodar
April 22, 2014
OJSC "Magnit" Announces Unaudited 1Q 2014 Results
Krasnodar, April 22, 2014: OJSC "Magnit", Russia's largest food retailer (the
"Company"; MICEX and LSE: MGNT) announces its unaudited 1Q 2014 financial
results prepared in accordance with IFRS.
During 1Q 2014 the Company added (net) 163 stores (141 convenience stores, 4
hypermarkets, 4 "Magnit Family" stores and 14 cosmetics stores) and increased
its selling space by 16.68% in comparison to 1Q 2013 from 2,629.88 thousand sq.
m. to 3,068.61 thousand sq. m. The total store base as of March 31, 2013
reached 8,256 stores (7,341 convenience stores, 165 hypermarkets, 50 "Magnit
Family" stores and 700 cosmetics stores).
Revenue in rubles increased by 24.95% YoY from 131,239.91 million RUR in 1Q
2013 to 163,990.13 million RUR in 1Q 2014. The top line growth was due to an
increase in selling space as well as to a 7.49% increase in like-for-like sales
(incl. VAT). Revenue growth in dollar terms amounted to 8.71%: from US$
4,315.09 million to US$ 4,690.91 million.
Gross margin grew from 26.72% in 1Q 2013 to 27.24% in 1Q 2014. Gross profit in
rubles increased by 27.36% from 35,070.35 million RUR (US$ 1,153.09 million) to
44,665.95 million RUR (US$ 1,277.66 million).
EBITDA increased by 21.82% from 12,214.09 million RUR (US$ 401.59 million) in
1Q 2013 to 14,879.50 million RUR (US$ 425.63 million) in 1Q 2014. EBITDA margin
in 1Q 2014 amounted to 9.07%.
1Q 2014 net income increased by 13.52% and amounted to 6,988.23 million RUR
(US$ 199.90 million) vs. 6,156.16 million RUR (US$ 202.41 million) in 1Q 2013.
Net income margin for 1Q 2014 was 4.26%.
Sergey Galitskiy, the Company's CEO, provided the following comments on the
published results:
"In the middle of 1Q 2014 the Company started active price investments in the
new regions of our geographical coverage: Moscow, Saint-Petersburg, Urals and
Western Siberia. The Company's EBITDA margin in the first quarter is in line
with our FY 2014 guidance".
1Q 2014 Key Operational Results:
1Q 2014 1Q 2013 Growth Rate
Number of opened stores, NET 163 191 n/a
convenience stores 141 163 n/a
hypermarkets 4 6 n/a
magnit family 4 1 n/a
cosmetics stores 14 21 n/a
Total number of stores 8,256 7,075 n/a
convenience stores 7,341 6,209 n/a
hypermarkets 165 132 n/a
magnit family 50 21 n/a
cosmetics stores 700 713 n/a
Selling space, eop, th. sq. m. 3,068.61 2,629.88 16.68%
convenience stores 2,349.71 2,030.20 15.74%
hypermarkets 493.53 407.46 21.12%
magnit family 58.08 25.81 125.06%
cosmetics stores 167.29 166.41 0.53%
Selling space growth, th. sq.m. 57.24 80.62 n/a
convenience stores 37.51 52.74 n/a
hypermarkets 10.66 19.85 n/a
magnit family 4.82 1.45 n/a
cosmetics stores 4.25 6.58 n/a
Number of customers, million 662.66 563.01 17.70%
convenience stores 582.77 505.46 15.30%
hypermarkets 53.07 42.13 25.98%
magnit family 11.53 5.58 106.65%
cosmetics stores 15.29 9.85 55.23%
LFL Results
Formats 1Q 2014 - 1Q 2013
# of Stores Average Ticket Traffic Sales
Convenience Stores 5,851 5.32% 0.61% 5.96%
Hypermarkets 128 4.34% 4.62% 9.17%
Magnit Family 21 5.27% 9.93% 15.73%
Cosmetics Stores 571 1.97% 50.54% 53.50%
Total 6,571 5.60% 1.79% 7.49%
1Q 2014 Key Financial Results
1Q 2014 1Q 2013 Growth Rate
Net sales, mn RUR 163,990.13 131,239.91 24.95%
convenience stores 126,020.31 104,145.23 21.00%
hypermarkets 29,589.83 22,670.89 30.52%
magnit family 4,453.55 1,935.79 130.06%
cosmetics stores 3,888.13 2,465.97 57.67%
wholesale 38.30 22.04 73.77%
Net sales, mn US$ 4,690.91 4,315.09 8.71%
convenience stores 3,604.79 3,424.23 5.27%
hypermarkets 846.41 745.40 13.55%
magnit family 127.39 63.65 100.15%
cosmetics stores 111.22 81.08 37.17%
wholesale 1.10 0.72 51.18%
Gross profit, mn RUR 44,665.95 35,070.35 27.36%
Gross profit, mn US$ 1,277.66 1,153.09 10.80%
Gross margin,% 27.24% 26.72% n/a
EBITDAR, mn RUR 19,330.73 15,541.62 24.38%
EBITDAR, mn US$ 552.95 511.00 8.21%
EBITDAR margin, % 11.79% 11.84% n/a
EBITDA, mn RUR 14,879.50 12,214.09 21.82%
EBITDA, mn US$ 425.63 401.59 5.98%
EBITDA margin, % 9.07% 9.31% n/a
EBIT, mn RUR 10,726.22 8,969.84 19.58%
EBIT, mn US$ 306.82 294.92 4.03%
EBIT margin, % 6.54% 6.83% n/a
Net income, mn RUR 6,988.23 6,156.16 13.52%
Net income, mn US$ 199.90 202.41 (1.24%)
Net income margin, % 4.26% 4.69% n/a
Note: net revenue in US$ terms is calculated using the daily exchange rate.
For further information, please contact:
Timothy Post Director, Investor Relations
Email: post@gw.tander.ru
Office: +7-861-277-4554 x 17600
Mobile: +7-961-511-7678
Direct Line: +7-861-277-4562
Dina Svishcheva Deputy Director, Investor Relations
Email: Chistyak@gw.tander.ru
Office: +7-861-277-45-54 x 15101
Mobile: +7-961-511-0202
Direct Line: +7-861-277-4562
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 March 31, 2014,
Magnit operated 23 distribution centers and over 8,200 stores (7,341
convenience, 215 hypermarkets, and 700 cosmetics) in more than 1,905 cities and
towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS consolidated financial statements for 2013,
Magnit had revenues of $18,202 million USD and an EBITDA of $2,032 million USD.
Magnit's local shares are traded on the Moscow Stock Exchange (MICEX: MGNT) and
its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating
from Standard & Poor's of BB. Measured by market capitalization, Magnit is one
of the largest retailers in Europe.
Based on management accounts
Based on the average exchange rate for 1Q 2014 - 34.9591 RUR per 1 US$, for 1Q
2013 - 30.4142 RUR per 1 US$.
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 March 1, 2013.© 2014 PR Newswire
