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Russia’s largest food retailer “Magnit” announces reviewed 1H 2016 results

Krasnodar, 2016-Sep-26 — /EPR Retail News/ — Public Joint Stock Company “Magnit”, Russia’s largest food retailer (the “Company”; MOEX and LSE: MGNT) announces its reviewed 1H 2016 results prepared in accordance with IFRS.

During 1H 2016 the Company added (net) 799 stores (308 convenience stores, 9 hypermarkets, 15 “Magnit Family” stores and 467 drogerie stores) and increased its selling space by 19.07% in comparison to 1H 2015 from 3,928.00 thousand sq. m. to 4,677.20 thousand sq. m. The total store base as of June 30, 2016 reached 12,888 stores (9,902 convenience stores, 228 hypermarkets, 170 “Magnit Family” stores and 2,588 drogerie stores).

Revenue increased by 14.67% YoY from 454,808.63 million RUR in 1H 2015 to 521,527.58 million RUR in 1H 2016.

Gross profit increased by 11.81% from 127,060.41 million RUR to 142,062.99 million RUR. Gross margin in 1H 2016 amounted to 27.24%.

EBITDA increased from 48,627.66 million RUR in 1H 2015 to 51,599.85 million RUR in 1H 2016. EBITDA margin in the 1H of 2016 was 9.89%. EBITDA margin in the 2Q of 2016 was 11.95%.

1H 2016 net income increased from 25,265.66 million RUR in 1H 2015 to 26,107.24 million RUR in 1H 2016. Net income margin for 1H 2016 was 5.01%.

According to Rosstat, general inflation in June 2016 amounted to 0.4% compared to 0.2% in June 2015, in 6M 2016 it was 3.3% compared to 8.5% in 6M 2015.

Food inflation in June 2016 amounted to 0.1% compared to -0.4% in June 2015, in 6M 2016 it was 3.2% compared to 10.8% in 6M 2015.

According to the reviewed results for the 1H 2016 some absolute numbers presented in this press release are immaterially higher compared to the management accounts numbers announced by the Company on July 25, 2016.

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 June 30, 2016, Magnit operated 34 distribution centers and 12,888 stores (9,902 convenience, 398 hypermarkets and 2,588 drogerie stores) in 2,397 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the reviewed IFRS consolidated financial statements for 1H 2016, Magnit had revenues of RUB 522 billion and an EBITDA of RUB 52 billion. Magnit’s local shares are traded on the Moscow Stock 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.

For further information, please contact:
Timothy Post
Head of Investor Relations
Office: +7-861-277-4554 x 17600
Mobile: +7-961-511-7678
Direct Line: +7-861-277-4562

Investor Relations Office:
Direct Line: +7-861-277-4562

Media Inquiries:
Media Relations Department

Source: Magnit

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