MAGNIT PJSC: Russian Post and Magnit open first retail stores

Dow Jones received a payment from EQS/DGAP to publish this press release.

MAGNIT PJSC (MGNT) 
MAGNIT PJSC: Russian Post and Magnit open first retail stores 
 
28-Jun-2018 / 13:06 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
                         Press Release 
 
                         Krasnodar 
 
                         June 28, 2018 
 
                         Russian Post and Magnit open first retail stores 
 
  Krasnodar, June 28, 2018: PJSC "Magnit", one of Russia's leading retailers 
    (the "Company", MOEX and LSE: MGNT), announces the start of sales in the 
     test stores located at the post offices in Moscow, Krasnodar and Ryazan 
     regions. Both urban and rural post offices - 12 fixed-site and 1 mobile 
                         stores - have been chosen for the pilot project. 
 
   The project is being developed under the trilateral strategic partnership 
                  between the Russian Post, PJSC Magnit and VTB Bank (PJSC). 
 
 The launch of test stores in the post offices provide Magnit chain with the 
opportunity to expand the geography of sales and cover territories where the 
          opening of the traditional store is economically unreasonable. The 
       collaboration brings along optimization of expenses of Magnit and the 
Russian Post. Customers get an additional service and can combine a visit to 
                         the post office with shopping. 
 
      In the Russian Post's ongoing efforts to enhance the efficiency of the 
 retail stores, the cooperation with one of the Russian leading retailers is 
                         the strategic pathway. 
 
All products in the test stores excluding postal goods have been provided by 
 Magnit. The assortment of the fixed-site stores varies from 200 to 800 SKUs 
    depending on the space and the location of the post office while the car 
 shop offers about 50 SKUs. In the rural areas the product mix includes food 
  items, household cleaning products, basic necessities and associated goods 
  while the urban stores offer additional categories - beverages, snacks and 
    confectionary. Customers in villages can influence the assortment mix by 
                     sharing their feedback on the product representativity. 
 
          "There are different consumer patterns across the territories. The 
assortment of the test stores is adjusted to the local customer needs. Based 
      on the analysis of the internal Magnit data, the unique customer value 
proposition has been developed for each test store. We are getting closer to 
    our customers and offer greater shopping experience. We believe that the 
       project will be successful and beneficial for both companies", - Olga 
                         Naumova, Magnit CEO, said. 
 
 "One of the key priorities of our joint project is to test different retail 
formats in the urban and rural post offices. Additionally, we plan to launch 
 home delivery - customers may choose products from the catalogues available 
           at the carriers. We will make the decision on the further project 
    development before year-end based on the results of the pilot stores", - 
                       Nikolai Podguzov, CEO of the Russian Post, commented. 
 
                         For further information, please contact: 
 
Dina Svishcheva Deputy Director, Investor Relations 
 
                          Email: [e-mail] 
 
                    Office: [phone] x 15101 
 
Media Inquiries          Media Relations Department 
 
                                    [e-mail] 
 
                         "Magnit" 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 March 31, 2018, Magnit operated 37 distribution centers 
  and 16,625 stores (12,283 convenience, 242 hypermarkets, 210 Magnit Family 
    stores and 3,890 drogerie stores) in 2,764 cities and towns throughout 7 
                         federal regions of the Russian Federation. 
 
In accordance with the audited IFRS results for 2017, Magnit had revenues of 
RUB 1,143 billion and an EBITDA of RUB 92 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. 
 
                         "Russian Post" description: 
 
         Russian Post is a federal post operator, is included in the Russian 
Federation strategic companies list. In accordance with the Russian Post, it 
 includes 42,000 offices across the country and has one of the biggest staff 
                         - about 350,000 post workers. 
 
    Every year, Russian Post delivers over 2.5 billion letters and bills (of 
 them 1 billion letters are from state authorities) and 365 million parcels. 
Russian Post services about 20 million subscribers in Russia by delivering 1 
         billion copies of print publications per year. The annual volume of 
    transactions processed by Russian Post is 3.2 trillion rubles (pensions, 
                         payments and transfers). 
 
  Operational revenue of Russian Post in 2017 grew by 8,1% (13,3 bln rubles) 
      up to 178,1 bln rubles (164,8 bln rubles in 2016). Russian Post showed 
                         profits in all areas of its business activities. 
 
 Actual net profit of Russian Post exceeded the planned indicators by 28% up 
                         to 758 mln rubles. 
 
ISIN:           US55953Q2021 
Category Code:  MSCU 
TIDM:           MGNT 
LEI Code:       2534009KKPTVL99W2Y12 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   5690 
EQS News ID:    699715 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

June 28, 2018 06:06 ET (10:06 GMT)