MAGNIT PJSC: Magnit Opens New Distribution Center in Novosibirsk

DJ Magnit Opens New Distribution Center in Novosibirsk

MAGNIT PJSC (MGNT) 
Magnit Opens New Distribution Center in Novosibirsk 
 
01-Oct-2020 / 10:00 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
Press-Release | Novosibirsk | October 1, 2020 
 
Magnit Opens New Distribution Center in Novosibirsk 
 
     The Company opened a modern logistics hub in Sadovy village, 15 km from 
Novosibirsk. The warehouse has a total area of 40,000 square meters and will 
             serve about 450 Magnit stores in Novosibirsk and Altay regions. 
 
     Novosibirsk, Russia (October 1, 2020): Magnit PJSC (MOEX and LSE: MGNT; 
Company, Group), one of Russia's leading retailers, has commenced operations 
  at its distribution center in Novosibirsk. Previously, Magnit used several 
 leased warehouses to supply its stores in the region. The new logistics hub 
was designed and built using cutting-edge technology specifically to fit the 
     Company's current needs and support its future plans for development in 
Siberia. The distribution center will enable Magnit to significantly improve 
                                  efficiency of its logistics in the region. 
 
    The logistics complex includes an ambient storage facility, refrigerated 
    storerooms, artificial ripening chambers for bananas, a non-food product 
warehouse, an administration and amenities building, a recycling facility, a 
 separate building for the motor transport enterprise complete with a repair 
  and maintenance area, as well as a fuel station and a technical inspection 
                                                                      point. 
 
  The distribution center will process around 6,650 tonnes of products every 
day, accepting deliveries from suppliers and dispatching goods to stores. In 
addition to federal suppliers, the warehouse will also receive products from 
  around 100 local producers. At the moment, the hub serves about 450 stores 
in Novosibirsk and in Altay region. Its motor transport enterprise will have 
                                                a fleet of around 80 trucks. 
 
            To ensure proper storage, picking, and delivery of products, the 
       distribution center was automated to the maximum possible extent. For 
     instance, it utilizes automatic ordering and product placement systems, 
while time slotting helps in choosing the best time for a supplier to arrive 
 for unloading. For quality assurance purposes, acceptance of fresh products 
     (fruits and vegetables) is done remotely: experts from the headquarters 
assess the delivered items using video cameras and other advanced tools. The 
      Company is currently implementing a Pick-by-Voice solution in order to 
    decrease the time required to assemble an order and the costs associated 
  with handling. Products are stored and dispatched using modern warehousing 
      equipment and machinery. In addition to that, the Company monitors the 
     quality of goods in real time: the distribution center is fitted with a 
  remote temperature monitoring system, while during delivery to the stores, 
  temperature of products inside the truck is tracked using special sensors. 
 
The grand opening of the distribution center was attended by the Governor of 
   Novosibirsk region, Andrey Travnikov, and the management of Magnit Retail 
                                                                      Chain. 
 
          "Siberia is one of the key regions for Magnit. We plan to continue 
 developing our stores here and create new interesting offers and convenient 
 services for our customers. Having a modern distribution center will enable 
us to speed up delivery of our products to consumers, expand our cooperation 
       with local suppliers, and establish a solid foundation for our future 
             business projects,"-said Jan Dunning, Magnit President and CEO. 
 
              "Due to its location and capabilities offered by its transport 
infrastructure, Novosibirsk serves as the gateway for commerce across entire 
  Siberia. Modern trade isn't about supply depots and food warehouses of the 
     old days, it's about state-of-the-art production facilities that evolve 
       every day thanks to developments in logistics, digital solutions, and 
      advanced management mechanisms. Today, we take part in the launch of a 
      logistics hub for the largest retail chain in the country. Novosibirsk 
 region is on the forefront of transformation of modern logistics, commerce, 
   product distribution, and job opportunities for local residents. Together 
 with the motor transport enterprise, the new distribution center represents 
   almost a thousand new jobs. Through its active development in Novosibirsk 
       region and neighboring territories, Magnit also drives growth for our 
   producers, most notably in agriculture and processing industries. In just 
two years, share of local products on the shelves of Magnit stores grew from 
    14% to 32%, with bread and pastry going up to almost 100%, and dairy and 
          poultry to 50%. In Magnit, consumers can always find products from 
  manufacturers familiar to and beloved by the residents of our region. I am 
  certain that our long-term partnership will continue in the future,"-noted 
                           Andrey Travnikov, Governor of Novosibirsk region. 
 
                                    For further information, please contact: 
 
Dmitry Kovalenko 
 
Director for Investor Relations 
 
Email: [e-mail] 
 
Office: [phone] 
 
Dina Chistyak 
 
Director for Investor Relations 
 
Email: [e-mail] 
 
Office: [phone] x 15101 
 
Media Inquiries 
 
Media Relations Department 
 
Email: [e-mail] 
 
                                                            Note to editors: 
 
   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 June 30, 2020, Magnit operated 38 distribution centres 
  and 20,894 stores (14,581 convenience, 472 supermarkets and 5,841 drogerie 
       stores) in 3,710 cities and towns throughout 7 federal regions of the 
                                                         Russian Federation. 
 
  In accordance with the reviewed IFRS 16 management accounts results for 1H 
    2020, Magnit had revenues of RUB 763.4 billion and an EBITDA of RUB 86.9 
     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. 
 
Forward-looking statements: 
 
This document contains forward-looking statements that may or may not prove 
accurate. For example, statements regarding expected sales growth rate and 
store openings are forward-looking statements. Forward-looking statements 
involve known and unknown risks, uncertainties and other important factors 
that could cause actual results to differ materially from what is expressed 
or implied by the statements. Any forward-looking statement is based on 
information available to Magnit as of the date of the statement. All written 
or oral forward-looking statements attributable to Magnit are qualified by 
this caution. Magnit does not undertake any obligation to update or revise 
any forward-looking statement to reflect any change in circumstances. 
 
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.:   85204 
EQS News ID:    1138152 
 
End of Announcement EQS News Service 
 
 

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October 01, 2020 03:00 ET (07:00 GMT)