24 Mar 2017 07:01
PJSC MAGNIT - Audited FY 2016 Financial ResultsPJSC MAGNIT - Audited FY 2016 Financial Results
PR Newswire
London, March 24
Press Release
Krasnodar
March 24, 2017
PJSC “Magnit” Announces Audited FY 2016 Results
Krasnodar, Russia (March 24, 2017): Magnit PJSC, one of Russia’s leading retailers (MOEX and LSE: MGNT) announces its audited FY 2016 results prepared in accordance with IFRS.
During 2016 Magnit added 1,970 stores on a net basis (927 convenience stores, 18 hypermarkets, 39 Magnit Family stores, and 986 drogerie stores) and increased its selling space by 14.82% in comparison to 2015 from 4.41 million sq. m. to 5.07 million sq. m. The total store base as of December 31, 2016 reached 14,059 stores (10,521 convenience stores, 237 hypermarkets, 194 Magnit Family stores, and 3,107 drogerie stores).
Revenue increased by 13.07% YoY from 950.61 billion RUR in 2015 to 1.07 trillion RUR in 2016.
Gross Profit increased from 270.82 billion RUR in 2015 to 295.76 billion RUR in 2016. Gross Margin in 2016 was 27.52%.
EBITDA increased from 103.97 billion RUR in 2015 to 107.79 billion RUR in 2016. EBITDA Margin in 2016 was 10.03%. EBITDA Margin in the 4Q of 2016 was 9.67%. Net Debt / EBITDA ratio (in ruble terms) for 2016 amounted to 1.03.
Net Income was 54.41 billion RUR in 2016. Net Income Margin for 2016 was 5.06%.
According to Rosstat, general CPI in 12M 2016 was 5.4% compared to 12.9% in 12M 2015. In the month of December 2016 general CPI was 0.4% compared to 0.8% in December 2015.
Food inflation in 12M 2016 was 4.6% compared to 14.0% in 12M 2015. In the month of December 2016 food inflation was 0.6% compared to 1.2% in December 2015.
Key figures presented in this press release immaterially differ from the numbers under management accounts announced by Magnit on January 27, 2017. Thus, according to the audited FY 2016 results EBITDAR, EBITDA and EBIT margins are higher by 1 b. p.
4Q and FY 2016 Key Operating Highlights:
| 4Q 2016 | 4Q 2015 | Growth Rate | FY 2016 | FY 2015 | Growth Rate | |
| Number of opened stores, NET | 695 | 701 | n/a | 1,970 | 2,378 | n/a |
| convenience stores | 383 | 348 | n/a | 927 | 1,250 | n/a |
| hypermarkets | 9 | 11 | n/a | 18 | 29 | n/a |
| magnit family | 15 | 28 | n/a | 39 | 58 | n/a |
| drogerie stores | 288 | 314 | n/a | 986 | 1,041 | n/a |
| Total number of stores | 14,059 | 12,089 | n/a | 14,059 | 12,089 | n/a |
| convenience stores | 10,521 | 9,594 | n/a | 10,521 | 9,594 | n/a |
| hypermarkets | 237 | 219 | n/a | 237 | 219 | n/a |
| magnit family | 194 | 155 | n/a | 194 | 155 | n/a |
| drogerie stores | 3,107 | 2,121 | n/a | 3,107 | 2,121 | n/a |
| Selling space, eop. th. sq. m. | 5,067.67 | 4,413.72 | 14.82% | 5,067.67 | 4,413.72 | 14.82% |
| convenience stores | 3,452.40 | 3,119.56 | 10.67% | 3,452.40 | 3,119.56 | 10.67% |
| hypermarkets | 683.67 | 639.14 | 6.97% | 683.67 | 639.14 | 6.97% |
| magnit family | 212.76 | 170.18 | 25.02% | 212.76 | 170.18 | 25.02% |
| drogerie stores | 718.84 | 484.84 | 48.26% | 718.84 | 484.84 | 48.26% |
| Selling space growth, th. sq.m. | 242.28 | 258.73 | n/a | 653.95 | 823.08 | n/a |
| convenience stores | 132.60 | 122.26 | n/a | 332.84 | 446.25 | n/a |
| hypermarkets | 24.30 | 34.18 | n/a | 44.53 | 80.05 | n/a |
| magnit family | 16.45 | 30.36 | n/a | 42.58 | 61.11 | n/a |
| drogerie stores | 68.93 | 71.92 | n/a | 234.00 | 235.67 | n/a |
| Number of customers, million | 966.69 | 895.82 | 7.91% | 3,817.13 | 3,376.86 | 13.04% |
| convenience stores | 809.30 | 754.72 | 7.23% | 3,220.10 | 2,874.00 | 12.04% |
| hypermarkets | 64.05 | 68.76 | (6.86)% | 262.10 | 263.05 | (0.36)% |
| magnit family | 32.60 | 29.08 | 12.10% | 127.00 | 100.30 | 26.62% |
| drogerie stores | 60.74 | 43.26 | 40.39% | 207.93 | 139.51 | 49.04% |
LFL Results
| Formats | 4Q 2016 - 4Q 2015[1] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 9,020 | 1.99% | (0.68)% | 1.30% |
| Hypermarkets | 214 | 1.00% | (12.23)% | (11.35)% |
| Magnit Family | 133 | 0.06% | (9.79)% | (9.74)% |
| Drogeries | 1,967 | 3.91% | 0.37% | 4.29% |
| Total | 11,334 | 0.56% | (1.84)% | (1.30)% |
| Formats | 12M 2016 – 12M 20151 | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,663 | 0.32% | 2.05% | 2.38% |
| Hypermarkets | 211 | (0.85)% | (9.32)% | (10.09)% |
| Magnit Family | 133 | (1.08)% | (6.04)% | (7.05)% |
| Cosmetics Stores | 1,911 | 7.55% | (2.50)% | 4.87% |
| Total | 10,918 | (0.90)% | 0.65% | (0.26)% |
4Q[2]and FY 2016 Key Financial Results, million RUR[3]
| 4Q 2016 | 4Q 2015 | Growth Rate | FY 2016 | FY 2015 | Growth Rate | |
| Net sales | 284,674.68 | 260,170.78 | 9.42% | 1,074,811.55 | 950,613.34 | 13.07% |
| convenience stores | 207,440.08 | 188,929.35 | 9.80% | 790,157.07 | 701,274.95 | 12.67% |
| hypermarkets | 40,394.25 | 43,310.51 | (6.73)% | 157,688.53 | 161,578.67 | (2.41)% |
| magnit family | 15,161.85 | 13,509.11 | 12.23% | 56,910.82 | 44,825.31 | 26.96% |
| drogerie stores | 19,468.53 | 13,403.80 | 45.25% | 64,449.43 | 40,122.06 | 60.63% |
| wholesale | 2,209.97 | 1,018.01 | 117.09% | 5,605.71 | 2,812.35 | 99.32% |
| Gross profit | 78,327.86 | 75,444.88 | 3.82% | 295,759.01 | 270,820.81 | 9.21% |
| Gross margin,% | 27.51% | 29.00% | n/a | 27.52% | 28.49% | n/a |
| EBITDAR | 37,822.97 | 37,416.36 | 1.09% | 146,264.42 | 134,149.92 | 9.03% |
| EBITDAR margin, % | 13.29% | 14.38% | n/a | 13.61% | 14.11% | n/a |
| EBITDA | 27,539.16 | 28,860.14 | (4.58)% | 107,793.02 | 103,972.93 | 3.67% |
| EBITDA margin, % | 9.67% | 11.09% | n/a | 10.03% | 10.94% | n/a |
| EBIT | 20,638.86 | 23,253.59 | (11.24)% | 81,967.38 | 82,856.21 | (1.07)% |
| EBIT margin, % | 7.25% | 8.94% | n/a | 7.63% | 8.72% | n/a |
| Net income | 13,485.38 | 15,807.15 | (14.69)% | 54,408.99 | 59,061.20 | (7.88)% |
| Net income margin, % | 4.74% | 6.08% | n/a | 5.06% | 6.21% | n/a |
4Q[4] and FY 2016 Key Financial Results, US$[5] million[6]
| 4Q 2016 | 4Q 2015 | Growth Rate | FY 2016 | FY 2015 | Growth Rate | |
| Net sales | 4,513.73 | 3,945.36 | 14.41% | 16,033.61 | 15,594.59 | 2.82% |
| convenience stores | 3,289.12 | 2,865.02 | 14.80% | 11,787.25 | 11,504.25 | 2.46% |
| hypermarkets | 640.48 | 656.78 | (2.48)% | 2,352.34 | 2,650.66 | (11.25)% |
| magnit family | 240.40 | 204.86 | 17.35% | 848.97 | 735.35 | 15.45% |
| drogerie stores | 308.69 | 203.26 | 51.87% | 961.43 | 658.19 | 46.07% |
| wholesale | 35.04 | 15.44 | 126.94% | 83.62 | 46.14 | 81.23% |
| Gross profit | 1,241.95 | 1,144.09 | 8.55% | 4,412.02 | 4,442.75 | (0.69)% |
| Gross margin,% | 27.51% | 29.00% | n/a | 27.52% | 28.49% | n/a |
| EBITDAR | 599.71 | 567.40 | 5.69% | 2,181.91 | 2,200.70 | (0.85)% |
| EBITDAR margin, % | 13.29% | 14.38% | n/a | 13.61% | 14.11% | n/a |
| EBITDA | 436.65 | 437.65 | (0.23)% | 1,608.01 | 1,705.65 | (5.72)% |
| EBITDA margin, % | 9.67% | 11.09% | n/a | 10.03% | 10.94% | n/a |
| EBIT | 327.25 | 352.63 | (7.20)% | 1,222.76 | 1,359.24 | (10.04)% |
| EBIT margin, % | 7.25% | 8.94% | n/a | 7.63% | 8.72% | n/a |
| Net income | 213.82 | 239.71 | (10.80)% | 811.65 | 968.89 | (16.23)% |
| Net income margin, % | 4.74% | 6.08% | n/a | 5.06% | 6.21% | n/a |
Notes:
Net revenue in US$ terms is calculated using the average exchange rate for the period.
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.
For further information, please contact:
| Timothy Post | Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562 |
| Investor Relations Office | MagnitIR@magnit.ru Direct Line: +7-861-277-4562 Website: ir.magnit.com/ |
| Media Inquiries | Media Relations Department press@magnit.ru |
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 December 31, 2016, Magnit operated 35 distribution centers and 14,059 stores (10,521 convenience, 431 hypermarkets and 3,107 drogerie stores) in 2,494 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS results for 2016, Magnit had revenues of RUB 1,075 billion and an EBITDA of RUB 108 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.
[1] LFL calculation base includes stores (all formats), which have been opened 12 months prior to the last month of the reporting period. i.e. by December 1, 2015.
[2] Unaudited results
[3] Please follow the link to view FY 2016 financial report http://ir.magnit.com/en/financial-reports/
[4] Unaudited results
[5] Based on the average exchange rate for 4Q 2016 – 63.0685 RUB per 1 USD, 4Q 2015 – 65.9434 RUB per 1 USD, 12M 2016 – 67.0349 RUB per 1 USD, 12M 2015 – 60.9579 RUB per 1 USD
[6] Please follow the link to view FY 2016 financial report http://ir.magnit.com/en/financial-reports/