DJ Magnit reports 37.7% total sales growth (18.5% adjusted for Dixy acquisition) and 12.0% LFL sales growth in 1Q 2022
MAGNIT PJSC (MGNT) Magnit reports 37.7% total sales growth (18.5% adjusted for Dixy acquisition) and 12.0% LFL sales growth in 1Q 2022 29-Apr-2022 / 18:50 MSK Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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Magnit Reports 37.7% total sales growth (18.5% adjusted for dixy acquisition) and 12.0% LFL Sales Growth in 1Q 2022 Krasnodar, Russia (April 29, 2022): Magnit PJSC (MOEX and LSE: MGNT; Magnit, the Company), one of Russia's leading retailers, announces its 1Q 2022 operational and unaudited financial results.
1Q 2022 Key Operational and Financial Highlights
-- Total revenue increased by 37.7% y-o-y to RUB 547.7 billion. Total revenue adjusted for the
Dixy acquisition increased by 18.5%;
-- Net retail sales reached RUB 534.8 billion increasing 37.9% y-o-y. Net retail sales growth
37.7% adjusted for the Dixy acquisition was 18.8%;
-- LFL[1] sales growth of 12.0% driven by 11.1% average ticket growth and 0.8% LFL traffic
TOTAL REVENUE growth;
growth
12.0%
lfl sales
growth
-- The Company opened 657 stores on a gross basis (459 Magnit and 8 Dixy convenience stores as
well as 190 drogeries) or 528 stores on a net basis. As of March 31, 2022 the total store base was
26,605;
-- Selling space increase of 238 thousand sq. m., bringing total selling space to 9,235
thousand sq. m. (21.4% y-o-y growth);
-- The Company redesigned 163 stores (157 Magnit and 5 Dixy convenience stores and one
drogerie). As at March 31, 2022, across Magnit brand 79% of convenience stores, 45% of supermarkets
and 63% of drogeries are either new or refurbished;
-- Gross Profit[2] increased by 37.7% y-o-y to RUB 126.8 billion. Gross margin remained flat
y-o-y at 23.1% as a result of favourable product and format mix offset by higher shrinkage;
23.1%
gross margin
-- EBITDA was RUB 37.7 billion with a 6.9% margin driven by consolidation of Dixy business
with lower profitability;
-- Net income remained flat y-o-y at RUB 10.9 billion with a margin of 2.0%.
Key events in 1Q 2022 and after the Reported Period
835
-- Magnit opened its first cosmetics store in Uzbekistan;
pharmacies -- Magnit launched its own courier service and started piloting 60-minute
express delivery using its own couriers in Moscow;
covered by magnit online drug -- The Company launched two dark stores in Saint-Petersburg focused on express
reservation service delivery within one hour;
-- Magnit announced its plans to launch a modern high-tech coffee roasting and
packaging operation at its Tver facility in the fall of 2022;
-- Magnit has connected pharmacies at Ural federal district to the drug
reservation service which now covers 835 pharmacies in 58 regions;
Consolidation of the Dixy business and changes to the reporting standards
Magnit completed the acquisition of the Dixy retail business on July 22, 2021, and subsequent performance of Dixy has been consolidated into Magnit's results. Sales and operating results of the stores under the Dixy brand are reported separately, and growth metrics will be published starting from 3Q 2022. Dixy stores are not included in the LFL panel; this will begin after full 12 months of operations following consolidation. The Dixy retail business does not form a separate segment - Magnit will continue reporting consolidated financial results for the Group. 1Q 2022 Operating Results
LFL Results[3]
Average Ticket Traffic Sales Total (Magnit excl. Dixy) 11.1% 0.8% 12.0% Convenience Stores 10.8% 1.0% 12.0% Supermarkets 11.0% -4.0% 6.6% Drogerie Stores 16.4% 2.8% 19.7%
Retail Sales
1Q 2022 1Q 2021 Change Change, %
Total Net Retail Sales, million RUB 534,824 387,899 146,925 37.9%
Magnit 460,746 387,899 72,847 18.8%
Convenience Stores[4] 358,232 299,942 58,290 19.4%
Supermarkets[5] 53,751 50,115 3,636 7.3%
Drogerie Stores 45,927 35,011 10,916 31.2%
Other Formats[6] 2,836 2,831 5 0.2%
DIXY 74,078 n/a n/a n/a
Convenience Stores 70,525 n/a n/a n/a
Supermarkets[7] 3,554 n/a n/a n/a
Number of Tickets, mln 1,357 1,103 254 23.0%
Magnit 1,179 1,103 76 6.9%
Convenience Stores 991 922 69 7.5%
Supermarkets 76 79 -3 -3.5%
Drogerie Stores 105 94 11 12.1%
Other Formats 6 8 -1 -16.8%
DIXY 178 n/a n/a n/a
Convenience Stores 173 n/a n/a n/a
Supermarkets 5 n/a n/a n/a
Average Ticket[8], RUB 394 352 42 12.1%
Magnit 391 352 39 11.1%
Convenience Stores 361 325 36 11.1%
Supermarkets 707 636 71 11.2%
Drogerie Stores 436 373 64 17.1%
Other Formats 428 357 70 19.7%
DIXY 416 n/a n/a n/a
Convenience Stores 408 n/a n/a n/a
Supermarkets 709 n/a n/a n/a Stores and Selling Space
1Q 2022 1Q 2021 Change Change, %
Number of Stores (EOP) 26,605 21,900 4,705 21.5%
Magnit 24,234 21,900 2,334 10.7%
Convenience Stores 16,620 15,098 1,522 10.1%
Supermarkets 468 471 -3 -0.6%
Drogerie Stores 7,146 6,331 815 12.9%
DIXY 2,371 n/a n/a n/a
Convenience Stores 2,333 n/a n/a n/a
Supermarkets 38 n/a n/a n/a
Store Openings (Net) 528 336 192 57.1%
Magnit 608 336 272 81.0%
Convenience Stores 430 187 243 129.9%
Supermarkets -2 1 -3 -300.0%
Drogerie Stores 180 148 32 21.6%
DIXY -80 n/a n/a n/a
Convenience Stores -79 n/a n/a n/a
Supermarkets -1 n/a n/a n/a
Total Selling Space (EOP), th. sq.m 9,235 7,606 1,629 21.4%
Magnit 8,405 7,606 799 10.5%
Convenience Stores 5,797 5,169 627 12.1%
Supermarkets 935 943 -8 -0.8%
Drogerie Stores 1,645 1,460 185 12.7%
Other formats 28 33 -6 -16.9%
DIXY 830 n/a n/a n/a
Convenience Stores 757 n/a n/a n/a
Supermarkets 73 n/a n/a n/a
Selling Space Addition (Net), th. sq.m 238 109 129 n/a
Magnit 200 109 91 n/a
Convenience Stores 161 80 82 n/a
Supermarkets -2 2 -4 n/a
Drogerie Stores 41 32 9 n/a
Other formats 0 -4 4 n/a
DIXY 37 n/a n/a n/a
Convenience Stores 39 n/a n/a n/a
Supermarkets -1 n/a n/a n/a
6.2%
LTM sales Trading Performance
density[9]
improvement
y-o-y
Total sales in 1Q 2022 grew by 37.7% y-o-y to RUB 547.7 billion. Net retail sales grew by 37.9% y-o-y,
driven by a combination of 21.4% selling space growth and 12.0% LFL sales growth. Net retail sales
achieved by the stores under the Magnit brand accelerated to 18.8% from 15.6% in 4Q 2021 driven by LFL
sales growth in the mature outlets and higher selling space growth.
Net retail sales growth continued to outpace selling space growth on further improvement of sales
densities. Overall sales densities in 1Q 2022 (excluding stores under the Dixy brand) improved by 2.0%
q-o-q and 6.2% y-o-y while across the Company's main convenience store format these improved by 1.7%
q-o-q and 6.8% y-o-y.
Net retail sales growth demonstrated strong monthly performance and exceeded 30% in January and February
2022. In March 2022 net retail sales grew sharply to 49.2% driven by accelerated inflation and
stockpiling effect when customers were stocking up with dry food and essentials.
Selling space growth increased further from 20.0% in the previous quarter to 21.4% in the reported
quarter, driven by accelerated organic expansion and the Dixy acquisition (2,477 Dixy stores added in 3Q
2021 but consolidated from July 22nd, 2021). Selling space growth adjusted for the Dixy acquisition
accelerated to 10.5% compared to the previous quarter, reflecting 59% increase y-o-y in the number of
store openings per quarter (649 in 1Q 2022 compared to 407 in 1Q 2021 on gross basis).
21.4%
selling space
growth y-o-y
LFL sales growth accelerated further from 9.9% in the previous quarter to 12.0% in 1Q 2022 predominantly
driven by strong forward-buying effect in March. 373 stores entered LFL panel in 1Q (including 212
convenience stores and 161 drogeries). Only 7% of Magnit's selling space is currently in the 'ramp-up'
phase with 93% already mature.
All regions showed robust LFL sales growth with North-West and Siberian regions delivering the strongest
results.
LFL sales growth in the reported quarter was driven by strong LFL average ticket growth of 11.1% due to
higher number of SKUs in the average customer basket and acceleration of inflation. LFL traffic turned
positive and stood at 0.8% driven by continued inflow of unique customers gained from other players, and
frequency of visits. Starting from March when customers were stocking up on dry food and essentials,
traffic growth accelerated mainly on the back of increased visit frequency.
Revenue and LFL sales growth accelerated versus previous quarter despite gradual decline of promo
activity starting from the second half of March.
Cosmetics and detergents were the fastest growing categories in the reported quarter as customers were
stocking up with essential non-food items.
61 mln During the quarter the number of loyalty programme cardholders reached 61.1 million. Company-wide, the
proportion of tickets using the loyalty card was 55% with sales penetration of 68%. During peak days of
of loyalty the quarter it reached 58% and 72% correspondingly. The loyalty programme continues to deliver positive
program cross-format gains - 44% of Magnit's customer base at the end of the reporting period (compared to 43% in
cardholders the previous quarter) visit 2+ store formats. Average ticket of the active user is 1.8x higher vs
transaction without loyalty card.
Store Network Development and Performance by Format
The convenience segment within the Magnit brand generated 67.0% of total net retail sales in 1Q
2022. In the quarter Magnit more than doubled its expansion programme y-o-y and opened (gross) 459
12.0% convenience stores (241 in 1Q 2021). The Company continued its efficiency campaign and closed 29
convenience stores compared to 54 stores a year ago. Magnit added 430 convenience stores (net)
LFL sales growth during the quarter. The selling space growth of convenience stores picked up to 12.1% y-o-y, driving
in Magnit a 19.4% acceleration in sales in the format driven by LFL sales growth of 12.0% and selling space
convenience in 1Q growth of 12.1%. LFL sales growth was driven by LFL average ticket growth of 10.8% while LFL traffic
2022 growth was 1.0%.
Magnit supermarkets generated 10.1% of the Group's net retail sales in the reported quarter. During
4.9% 1Q 2022 the Company did not open new supermarkets and closed two stores, focusing on improvement of
sales density of the existing network. Selling space across this format remained almost flat y-o-y.
y-o-y improvement LFL sales growth of the large format stores accelerated from 3.1% in the previous quarter to 6.6% in
of sales density 1Q 2022. This was driven by 11.0% average ticket growth and 4.0% traffic decline. Traffic reduction
of supermarkets in slowed down compared to the previous quarter but was still impacted by the ramp-up phase of the
1Q 2022 reopened stores after redesign campaign which accelerated last year (16% of large format store
portfolio has been redesigned in 2021). As a result, net retail sales growth of supermarkets
improved to 7.3% in the quarter.
The sales contribution of Magnit's drogerie format represented 8.6% of total net retail sales.
12.7% During 1Q 2022 Magnit opened (net) 180 cosmetics stores. Selling space increased by 12.7% y-o-y or
by 185 thousand sq. m. Driven by this increase in selling space and LFL sales growth of 19.7%, sales
y-o-y selling grew 31.2% - the strongest performance across all Magnit's store formats. LFL traffic growth turned
space increase in positive and stood at 2.8%. LFL average ticket growth accelerated to 16.4% driven by higher number
drogerie in 1Q of items per basket when customers were stocking up with non-food essentials. On-shelf inflation in
2022 the drogerie format was in line with food formats.
During 1Q 2022 Magnit continued its renovation programme and redesigned 157 Magnit and 5 Dixy
convenience stores as well as one drogerie. This resulted in the combined share of refurbished and
new stores across Magnit brand at: 79% for convenience stores, 45% for supermarkets and 63% for the
drogerie format.
The share of Dixy stores in the Group's total net retail sales reached 13.9% in the first quarter
including 13.2% of Dixy convenience stores. In the reported period eight convenience stores were
opened, while some stores were transformed into Magnit branded outlets, resulting in 2,371 stores
and 830 thousand sq. m. of selling space as at March 31, 2022. On pro-forma basis, Dixy stores
demonstrated strong LFL sales dynamics, in line with Magnit business, driven by mature stores,
despite high comparison base and strong sales density overall.
13.9% E-commerce
share of the Dixy
stores in the
total net retail Magnit has been developing e-commerce services since the third quarter of 2020. The Company
sales in 1Q 2022 currently runs a number of online delivery projects, including own delivery and partnerships
(express delivery, regular delivery, e-pharma, cosmetics and partnerships).
Total e-commerce GMV (incl. VAT) in the reported period was RUB 9.2 billion compared to RUB 0.9
billion in 1Q 2021.
During 1Q 2022, the average number of orders per day reached 91,297. In the end of March number of
daily orders exceeded 100 thousand.
9.2
The average ticket across all online services was c. RUB 1,116 including VAT. This average ticket is
RUB billion approximately 2.7x higher than in the convenience stores (RUB 413 in 1Q 2022). This is mostly due to
a larger number of items per basket. The average ticket within Magnit own delivery service was RUB
GMV in 1Q 2022 1,270.
Magnit's e-commerce services today cover over 7,303 offline stores and 21 dark stores in 66 regions
and 410 cities, with 71% of the current revenue generated outside Moscow and St. Petersburg. The
largest and fastest growing segment is express delivery, where orders are expected to be fulfilled
within 60 minutes.
1Q 2022 1Q 2021 Change Change, times/%
GMV, billion RUB 9.2 0.9 8.3 10.6x
Number of orders per day (average) 91,297 9,500 81,797 9.6x
Average ticket incl. VAT, RUB 1,116 1,100 15 1.4%
Number of stores covered, EOP 7,303 1,300 6,003 5.6x
Discounters
Magnit started piloting discounters in July 2020 as a response to the fast changing economic
environment. The concept is aimed at price-sensitive consumers who frequently make minor purchases of
traditional goods or stock up on products.
As at March 31, 2022 the Company had 274 operating 'My Price' discounters compared to 33 stores a year
ago. During the reported quarter Magnit opened 84 stores including 72 new outlets and 12 stores
reformatted from convenience stores.
274
Average ticket at My price discounters increased by 14% y-o-y and stood at RUB 338. LFL sales growth
My Price of outlets reformatted from convenience stores reached 50%.
discounters as
at march 31,
2022
Recent Trading
Total sales growth and LFL sales growth in April 2022 month-to-date run ahead of the 1Q average but
below March. Customer environment has normalized and shopping patterns returned to normal without
stockpiling effect. Within the structure of LFL sales, traffic is stabilizing while average ticket
growth continues to accelerate on higher y-o-y inflation (which started decelerating from its peak
levels in March).
Financial Results for 1Q 2022
IAS 17 IFRS 16
RUB mln 1Q 2022 1Q 2021 Change 1Q 2022 1Q 2021 Change
Total Revenue 547,708 397,889 37.7% 547,708 397,889 37.7%
Retail 534,824 387,899 37.9% 534,824 387,899 37.9%
Wholesale 12,883 9,990 29.0% 12,883 9,990 29.0%
Gross Profit 126,752 92,039 37.7% 126,764 92,042 37.7%
Gross Margin, % 23.1% 23.1% 1 bps 23.1% 23.1% 1 bps
SG&A, % of Sales -20.1% -20.2% 9 bps -18.8% -18.8% -4 bps
EBITDA pre LTI[10] 37,865 28,003 35.2% 61,400 45,452 35.1%
EBITDA Margin pre LTI, % 6.9% 7.0% -12 bps 11.2% 11.4% -21 bps
EBITDA 37,662 27,678 36.1% 61,197 45,127 35.6%
EBITDA Margin, % 6.9% 7.0% -8 bps 11.2% 11.3% -17 bps
EBIT 22,600 16,956 33.3% 30,299 23,160 30.8%
EBIT Margin, % 4.1% 4.3% -14 bps 5.5% 5.8% -29 bps
Net Finance Costs -3,700 -2,581 43.4% -13,666 -10,164 34.5%
FX Gain/ (Loss) -4,997 -190 n/a -5,215 -211 n/a
Profit before Tax 13,902 14,186 -2.0% 11,419 12,785 -10.7%
Taxes -2,997 -3,311 -9.5% -2,498 -3,031 -17.6%
Net Income 10,905 10,875 0.3% 8,921 9,753 -8.5%
Net Income Margin, % 2.0% 2.7% -74 bps 1.6% 2.5% -82 bps
23.1%
Gross margin
in 1Q 2022 Total revenue in 1Q 2022 increased by 37.7%. This growth was underpinned by net retail sales growth of
37.9% and wholesale revenue growth of 29.0%. Wholesale operations accounted for 2.4% of total sales.
Gross Profit in 1Q 2022 increased by 37.7% y-o-y to RUB 126.8 billion. Gross margin remained flat y-o-y
at 23.1% as a result of favourable product and format mix offset by higher shrinkage. Promotional
intensity was flat y-o-y with some deceleration starting from the second half of March.
Shrinkage as a proportion of sales increased by 24 bps y-o-y predominantly driven by consolidation of
Dixy business with higher shrinkage and losses of fruits & vegetables in transit due to supply-chain
disruption in March.
SG&A costs decreased by 9 bps y-o-y to 20.1% as a percent of sales due to lower personnel expenses and
positive operating leverage effect. This was partially offset by accelerated expansion and redesign with
a higher share of stores in the ramp-up phase and growth in other costs (faster y-o-y growth of online
services and bank expenses).
Personnel costs as a percentage of sales decreased by 24 bps on the back of continued productivity
improvements and ongoing automation of business processes.
Bank expenses as a percentage of sales increased by 7 bps y-o-y due to growing share of non-cash
payments.
Advertising expenses decreased by 5 bps y-o-y on lower marketing activities.
Rental costs as a percentage of sales increased by 4 bps y-o-y driven by consolidation of Dixy stores
predominantly located in the Moscow and Saint-Petersburg regions with higher rent rates, acceleration in
store openings and, subsequently, larger number of stores in the ramp-up period as well as higher share
of leased selling space. The share of leased selling space increased to 80.7% in 1Q 2022 vs 78.3% a year
ago. Despite the above-mentioned factors, rent expense of Magnit's standalone business decreased as a
percentage of sales thanks to higher sales density, improved lease terms with landlords and the closure
of inefficient stores.
Repair and maintenance, packaging and raw materials, utilities, depreciation and tax expenses as a
percentage of sales remained broadly flat y-o-y.
As a result, EBITDA was RUB 37.7 billion with a 6.9% margin. A decrease of 8 bps y-o-y was driven by
consolidation of Dixy business with lower profitability.
Net finance costs in 1Q 2022 increased by 43.4% y-o-y to RUB 3.7 billion (but were slightly lower in
absolute terms q-o-q) due to the higher cost of debt and total amount of borrowings. The Company
increased its total debt by RUB 152.5 billion during the last twelve months, by obtaining bank loans and
bond issuance. These supported the Company's accelerated expansion and the acquisition of Dixy last year.
As a result, average cost of debt increased y-o-y to 8.8% (284 bps y-o-y and 233 bps q-o-q). 79% of the
6.9% Company's debt profile is represented by long-term borrowings and bonds with an average maturity of 15
months.
ebitda margin
in 1Q 2022
In 1Q 2022 the Company reported FX loss of RUB 5.0 billion related to direct import operations because of
FX fluctuations.
Income tax in 1Q 2022 was RUB 3.0 billion. The effective tax rate stood at 21.6%.
As a result, net income in 1Q 2022 remained flat y-o-y and stood at RUB 10.9 billion. Net income margin
decreased by74 bps y-o-y to 2.0%.
2.0%
Net income
margin
in 1Q 2022 Financial Position Highlights (IFRS 16)
RUB mln March 31, 2022 December 31, 2021 March 31, 2021
Inventories 231,356 224,873 211,241
Trade and other receivables 15,618 11,727 12,171
Cash and cash equivalents 92,402 73,399 6,575
Long-term borrowings and loans 146,868 205,287 144,022
Trade and other payables 239,235 240,771 163,868
Short-term loans and borrowings 173,827 65,139 24,205
Inventories increased by RUB 20.1 billion (+9.5% y-o-y) compared with March 31, 2021 and stood at RUB
231.4 billion on the back of total sales growth of 37.7%. Adjusted for the Dixy acquisition, inventories
of the Magnit's standalone business reduced substantially. This was driven by a number of ongoing
12.6 projects, including the reduction of slow-moving items, assortment harmonization and IT solutions that
are aimed at better on-shelf availability and promotion forecasting.
DAYS
Y-O-Y
OPTIMISATION Trade and other payables grew by RUB 75.4 billion compared with March 31, 2021 and stood at RUB 239.2
OF INVENTORIES billion, driven by higher sales and improved payment days. Accounts receivables increased by RUB 3.4
[11] billion vs March 31, 2021 and stood at RUB 15.6 billion mainly due to higher sales.
Debt Composition and Leverage
March 31, 2022 December 31, 2021 March 31, 2021
IAS 17
Total Debt, RUB billion 320.7 270.4 168.2
Long-Term Debt 146.9 205.3 144.0
Short-Term Debt 173.8 65.1 24.2
Net Debt, RUB billion 228.3 197.0 161.7
Net Debt/EBITDA 1.6x 1.5x 1.4x
IFRS 16
Net Debt, RUB billion 682.1 653.3 522.8
Net Debt/EBITDA 3.0x 3.0x 2.8x
As at March 31, 2022 Gross Debt increased by RUB 152.5 billion or 90.6% compared to March 31, 2021 and
stood at RUB 320.7 billion. Total debt increased by 18.6% or RUB 50.3 billion versus end of the previous
quarter. The Company's cash position increased to RUB 92.4 billion as at March 31, 2022 from RUB 6.6
billion as at March 31, 2021. As a result, Net Debt increased by 41.2% y-o-y to RUB 228.3 billion as at
1.6x March 31, 2021.
net debt/
ebitda
as of march The Company's debt is fully RUB denominated, matching its revenue structure. The Net Debt to EBITDA ratio
31, 2022 was 1.6x as at March 31, 2022 vs 1.4x as at March 31, 2021.
(IAS17)
Capex in 1Q 2022 increased by 45.2% and stood at RUB 12.1 billion. This was driven by acceleration of the
Group's expansion and the store redesign programme (657 store openings on gross basis and 163 redesigns
in 1Q 2022 vs 407 and 100 respectively in 1Q 2021). FY 2022 Guidance
The Company puts its full year 2022 guidance (published on February 4th, 2022) under review due to uncertain market environment. Store opening and redesign programmes as well as capital expenditure targets for the current year may be adjusted in the next periods. Magnit will continue developing its e-commerce services with greater focus on profitability. Updated guidance may be communicated later in the year.
Note: 1. This announcement contains inside information disclosed in accordance with the Market Abuse Regulationeffective from July 3, 2016. 2. Please note that there may be small variations in calculation of totals, subtotals, and/or percentagechange due to rounding of decimals.
For further information, please contact:
Dina Chistyak
Director for Investor Relations
dina_chistyak@magnit.ru
Office: +7 (861) 210 9810 x 15101
Media Inquiries Twitter
press@magnit.ru @MagnitIR
Note to editors
"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, 2022, Magnit operated 45 distribution centers and
26,605 stores in 3,946 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS 16 results for FY 2021, Magnit had revenues of RUB 1,856 billion and
an EBITDA of RUB 214 billion. Magnit's local shares are listed on the Moscow Exchange (MOEX: MGNT) and
its GDRs on the London Stock Exchange (LSE: MGNT).
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/or 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.
APPENDIX
1Q 2022 Monthly Sales
January Change February Change March Change
Total net retail sales, RUB million 164,921 32.5% 162,858 30.6% 207,046 49.2%
Magnit 141,754 13.9% 140,332 12.5% 178,661 28.7%
Convenience Stores 112,551 16.2% 110,070 14.8% 135,611 26.5%
Supermarkets 16,211 1.6% 16,420 0.3% 21,121 18.7%
Drogerie Stores 12,095 13.0% 12,990 12.7% 20,842 63.0%
Other formats 897 -5.8% 851 -6.6% 1,087 12.5%
DIXY 23,167 n/a 22,526 n/a 28,385 n/a
Convenience Stores 22,052 n/a 21,431 n/a 27,042 n/a
Supermarkets 1,115 n/a 1,096 n/a 1,343 n/a 1Q 2022 Store Openings
1Q 2022 1Q 2021 Change Change, %
Store Openings (Gross) 657 407 250 61.4%
Magnit 649 407 242 59.5%
Convenience Stores 459 241 218 90.5%
Supermarkets 0 1 -1 -100.0%
Drogerie Stores 190 165 25 15.2%
DIXY 8 n/a n/a n/a
Convenience Stores 8 n/a n/a n/a
Supermarkets 0 n/a n/a n/a
Store Closures 129 71 58 81.7%
Magnit 41 71 -30 -42.3%
Convenience Stores 29 54 -25 -46.3%
Supermarkets 2 0 2 n/a
Drogerie Stores 10 17 -7 -41.2%
DIXY 88 n/a n/a n/a
Convenience Stores 87 n/a n/a n/a
Supermarkets 1 n/a n/a n/a
Store Openings (Net) 528 336 192 57.1%
Magnit 608 336 272 81.0%
Convenience Stores 430 187 243 129.9%
Supermarkets -2 1 -3 -300.0%
Drogerie Stores 180 148 32 21.6%
DIXY -80 n/a n/a n/a
Convenience Stores -79 n/a n/a n/a
Supermarkets -1 n/a n/a n/a
-----------------------------------------------------------------------------------------------------------------------
[1] LFL calculation base includes Magnit stores, which have been operating for 12 months since its first day of sales. LFL sales growth and average ticket growth are calculated based on sales turnover including VAT. Dixy stores will be added to the LFL panel after full 12 months of operations since consolidation
[2] In 2022 the Group adjusted its accounting policy and included associated expenses on goods processing for the production of culinary offerings and other ready meals at its stores into the cost of goods sold. The management of the Group believes that these changes are aimed at appropriate reporting consistent with other market players. The above expenses were previously included in the selling, general and administrative expenses. The Group applied changes retrospectively.
[3] Excluding Dixy stores. Dixy stores will be added to the LFL panel after full 12 months of operations after consolidation
[4] Convenience Stores include convenience stores and small pilots such as Magnit City and My Price discounters
[5] Supermarkets include Magnit Family supermarkets and Magnit Extra superstores
[6] Other Formats include pharmacies and stores located at Russian Post offices
[7] Supermarkets include Megamart and Minimart stores
[8] Excluding VAT
[9] Net retail sales of the last four quarters divided by the average selling space at the end of the last five quarters (excluding Dixy)
[10] LTI - Long-Term Incentive Program
[11] Inventory turnover days = ((inventories as of 31.12.2021 + inventories as of 31.03.2022)/2/cost of goods sold for 1Q 2022) x 90
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ISIN: US55953Q2021 Category Code: MSCU TIDM: MGNT LEI Code: 2534009KKPTVL99W2Y12 OAM Categories: 2.2. Inside information Sequence No.: 158741 EQS News ID: 1340167 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
April 29, 2022 11:50 ET (15:50 GMT)
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