Magnit Tallies Up New Year Sales

DJ Magnit Tallies Up New Year Sales

MAGNIT PJSC (MGNT) 
Magnit Tallies Up New Year Sales 
 
12-Jan-2021 / 12:00 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
Magnit Tallies Up New Year Sales 
******************************** 
 
Krasnodar, Russia (January 12, 2021): Magnit PJSC (MOEX and LSE: MGNT; the 
Company), one of the leading Russian retailers, has summarized its sales in 
the period preceding the New Year. From December 17 to 31, 2020, the 
Company's revenue grew by 11.9%[1] year-over-year, with LFL sales growing by 
8.9%. Like-for-like traffic decreased by 7.8% while LFL average ticket grew 
by 18.2% due to a higher average number of items per basket and trading up 
effect. 
 
"We are pleased with the results of the New Year sales. In the last days of 
December, Magnit showed record sales in its history, and these indicators 
were noticeably higher compared to 2019. Not only the CVP which was 
significantly improved over the year and a good preparation for the high 
season made their impact, but also the coronavirus restrictions, as a result 
of which many customers spent their New Year holidays at home. Magnit's 
online sales channel also coped well with the workload during the New Year 
period, even though all the projects are still being piloted," - commented 
Jan Dunning, Magnit President and CEO. 
 
The highest impact in the pre-New Year period traditionally came from 
December 30 and 31. These days accounted for some 22% of Magnit's sales made 
over the last two weeks of the year. Over 20% of sales volume of the entire 
pre-New Year week in such categories as sparkling wines, gifting cosmetic 
kits, juices, beverages, vodka, cognac, and cakes fell on the last day of 
2020. 
 
The average "New Year ticket" for Magnit's customers during the reporting 
period amounted to RUB 469. In the course of preparation of Russians for the 
New Year celebration, the citrus fruits, sparkling wines, perfumery, New 
Year confectionery gifts, as well as New Year tree decoration categories 
demonstrated the best sales dynamics with from 30 to 50% LFL growth. Duck 
meat was a real bestseller among Magnit customers with 6 times higher 
LFL-sales. 
 
During the pre-New Year period, the Company sold over 15 million bottles of 
champagne and wine, with Russian brands accounting for 81% of those sales. 
During the last two weeks of the year, Magnit customers bought around 23.5 
thousand tons of mandarins (+1.8 thousand tons vs. 2019), over 14 million 
boxes of chocolate sweets, 6.3 million cakes and pastries, 2.5 million cans 
of caviar, as well as 17 million packs of tea and coffee. Magnit's customers 
as usual stocked up on mayonnaise - the essential sauce of the New Year menu 
- with the total reaching 17.1 million packs sold. As in the previous year, 
the Company's private labels were highly demanded, e.g.: the Magnit 
Freshness range saw 470 tons of button mushrooms, 818 tons of cucumbers and 
1,606 tons of tomatoes sold in the last two weeks of 2020. 
 
Over the last two weeks of 2020, Magnit completed more than 70,000 online 
orders through its own and partner delivery services. The biggest order 
which amounted to RUB 64 thousand was the purchase made in Moscow via the 
e-pharma service. The biggest food delivery order amounted to RUB 15.9 
thousand and was made via the Company's own regular delivery service in 
Krasnodar. The average pre-New Year ticket in the online channel was RUB 
1,600. 
 
In the first ten days of the new year, the Company's revenue increased by 
9.5% year-over-year with LFL sales growing by 6.3%. Like-for-like traffic 
decreased by 10.1% but was overly compensated by 18.3% LFL average ticket 
increase. The Company associates these trading results primarily with the 
improved CVP available in Magnit stores as well as with the increased demand 
for food products among customers against the backdrop of the COVID-19 
restrictions. 
 
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 September 30, 2020, Magnit operated 38 distribution 
   centres and 21,154 stores (14,699 convenience, 469 supermarkets and 5,986 
  drogerie stores) in 3,819 cities and towns throughout 7 federal regions of 
                                                     the Russian Federation. 
 
 In accordance with the unaudited 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 or may contain 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. 
 
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[1] Operational figures are based on management accounts. Increase in LFL 
sales and average ticket calculated based on revenue with VAT. 
 
ISIN:           US55953Q2XXX 
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.:   91248 
EQS News ID:    1159963 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

January 12, 2021 04:00 ET (09:00 GMT)