MAGNIT PJSC (MGNT) MAGNIT PJSC: Unaudited 9M 2017 Financial Results 20-Oct-2017 / 09:00 CET/CEST 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.
Press Release Krasnodar October 20, 2017 PJSC "Magnit" Announces Unaudited 9M 2017 Results Krasnodar, Russia (October 20, 2017): Magnit PJSC, one of Russia's leading retailers (MOEX and LSE: MGNT) announces its unaudited 9M 2017 results prepared in accordance with IFRS[1]. During 9M 2017 Magnit added (net) 1,638 stores. The total store base as of September 30, 2017 reached 15,697 stores (11,743 convenience stores, 236 hypermarkets, 196 "Magnit Family" stores and 3,522 drogerie stores). Selling space increased by 15.28% in comparison with 9M 2016 from 4.83 million sq. m. to 5.56 million sq. m. Revenue increased by 6.4% from 790 billion RUR in 9M 2016 to 841 billion RUR in 9M 2017. Gross Profit increased from 217 billion RUR in 9M 2016 to 228 billion RUR in 9M 2017. Gross Margin in 9M 2017 was 27.1%. EBITDA in 9M 2017 was 69 billion RUR. EBITDA margin in the 9M of 2017 was 8.3%. Net Income in 9M 2017 was 28 billion RUR. Net Income Margin in 9M 2017 was 3.3%. According to Rosstat, CPI for the last 12M (October 2016 - September 2017) was 3.0% compared to 6.4% for the same period in the previous year. According to Rosstat, food inflation for the last 12M (October 2016 - September 2017) was 2.0% Y-o-Y vs 5.9% for the same period in the previous year. 9M 2017 presentation, which contains additional financial, operational and other data regarding 1H 2017 results, will be published at http://ir.magnit.com/en/shareholder-center/investor-presentation/ 3Q 2017 Monthly Operating Highlights: | | July | Y-o-Y, % | August | Y-o-Y, % | September | Y-o-Y, % | | New Store Openings (NET) | 227 | n/a | 277 | n/a | 349 | n/a | | Convenience stores | 165 | n/a | 196 | n/a | 268 | n/a | | Hypermarkets | (5) | n/a | 0 | n/a | 1 | n/a | | Magnit Family | 3 | n/a | 2 | n/a | 1 | n/a | | Drogerie Stores | 64 | n/a | 79 | n/a | 79 | n/a | | | | | | | | | | | | Number of Stores (EOP) | 15,071 | n/a | 15,348 | n/a | 15,697 | n/a | | Convenience stores | 11,279 | n/a | 11,475 | n/a | 11,743 | n/a | | Hypermarkets | 235 | n/a | 235 | n/a | 236 | n/a | | Magnit Family | 193 | n/a | 195 | n/a | 196 | n/a | | Drogerie Stores | 3,364 | n/a | 3,443 | n/a | 3,522 | n/a | | | | | | | | | | | | New Selling Space, th. sq. m. | 58.14 | n/a | 83.21 | n/a | 101.53 | n/a | | Convenience stores | 50.17 | n/a | 59.20 | n/a | 80.40 | n/a | | Hypermarkets | (9.44) | n/a | 2.64 | n/a | 2.09 | n/a | | Magnit Family | 3.35 | n/a | 2.52 | n/a | 1.01 | n/a | | Drogerie Stores | 14.06 | n/a | 18.85 | n/a | 18.02 | n/a | | | | | | | | | | | | Total Selling Space (EOP), th. sq. m. | 5,377.74 | 13.88% | 5,460.95 | 13.96% | 5,562.48 | 15.28% | | Convenience stores | 3,701.72 | 13.61% | 3,760.92 | 14.07% | 3,841.32 | 15.71% | | Hypermarkets | 681.63 | 3.00% | 684.26 | 2.83% | 686.35 | 4.09% | | Magnit Family | 212.26 | 10.98% | 214.79 | 11.13% | 215.80 | 9.93% | | Drogerie Stores | 782.13 | 28.01% | 800.99 | 25.96% | 819.01 | 26.02% | | | | | | | | | | | | Number of Customers, million | 351.20 | 4.56% | 356.75 | 5.88% | 336.40 | 7.47% | | Convenience stores | 296.52 | 4.50% | 301.30 | 6.07% | 284.28 | 7.79% | | Hypermarkets | 21.45 | (5.70%) | 21.24 | (5.59%) | 19.98 | (2.73%) | | Magnit Family | 11.67 | 3.01% | 11.71 | 3.81% | 10.90 | 4.71% | | Drogerie Stores | 21.57 | 19.32% | 22.50 | 17.65% | 21.25 | 15.78% | | | | | | | | | | | | Retail Sales[2], million RUR | 97,700.86 | 5.15% | 95,669.65 | 6.14% | 89,307.47 | 6.02% | | Convenience stores | 73,336.38 | 6.56% | 71,671.52 | 7.73% | 66,968.76 | 7.43% | | Hypermarkets | 12,585.12 | (7.11%) | 12,071.40 | (6.74%) | 11,188.27 | (5.56%) | | Magnit Family | 5,183.61 | 3.85% | 5,029.88 | 4.76% | 4,647.47 | 4.14% | | Drogerie Stores | 6,595.75 | 18.73% | 6,896.86 | 17.73% | 6,502.97 | 16.42% | | | | | | | | | | | | Retail Sales2, million USD[3] | 1,637.33 | 13.38% | 1,603.86 | 15.54% | 1,547.92 | 18.71% | | Convenience stores | 1,229.02 | 14.90% | 1,201.54 | 17.27% | 1,160.73 | 20.28% | | Hypermarkets | 210.91 | 0.17% | 202.37 | 1.51% | 193.92 | 5.75% | | Magnit Family | 86.87 | 11.98% | 84.32 | 14.04% | 80.55 | 16.60% | | Drogerie Stores | 110.54 | 28.03% | 115.62 | 28.15% | 112.71 | 30.36% | | | | | | | | | | | | |
3Q and 9M 2017 Operating Highlights: | | 3Q 2017 | 3Q 2016 | Y-o-Y, % | 9M 2017 | 9M 2016 | Y-o-Y, % | | New Store Openings (NET) | 853 | 476 | n/a | 1,638 | 1,275 | n/a | | Convenience stores | 629 | 236 | n/a | 1,222 | 544 | n/a | | Hypermarkets | (4) | 0 | n/a | (1) | 9 | n/a | | Magnit Family | 6 | 9 | n/a | 2 | 24 | n/a | | Drogerie Stores | 222 | 231 | n/a | 415 | 698 | n/a | | | | | | | | | | | | Number of Stores (EOP) | 15,697 | 13,364 | n/a | 15,697 | 13,364 | n/a | | Convenience stores | 11,743 | 10,138 | n/a | 11,743 | 10,138 | n/a | | Hypermarkets | 236 | 228 | n/a | 236 | 228 | n/a | | Magnit Family | 196 | 179 | n/a | 196 | 179 | n/a | | Drogerie Stores | 3,522 | 2,819 | n/a | 3,522 | 2,819 | n/a | | | | | | | | | | | | New Selling Space, th. sq. m. | 242.87 | 148.19 | n/a | 494.80 | 411.67 | n/a | | Convenience stores | 189.77 | 83.67 | n/a | 388.92 | 200.24 | n/a | | Hypermarkets | (4.71) | (1.14) | n/a | 2.68 | 20.23 | n/a | | Magnit Family | 6.88 | 9.26 | n/a | 3.04 | 26.13 | n/a | | Drogerie Stores | 50.93 | 56.39 | n/a | 100.17 | 165.07 | n/a | | | | | | | | | | | | Total Selling Space (EOP), th. sq. m. | 5,562.48 | 4,825.39 | 15.28% | 5,562.48 | 4,825.39 | 15.28% | | Convenience stores | 3,841.32 | 3,319.80 | 15.71% | 3,841.32 | 3,319.80 | 15.71% | | Hypermarkets | 686.35 | 659.37 | 4.09% | 686.35 | 659.37 | 4.09% | | Magnit Family | 215.80 | 196.31 | 9.93% | 215.80 | 196.31 | 9.93% | | Drogerie Stores | 819.01 | 649.91 | 26.02% | 819.01 | 649.91 | 26.02% | | | | | | | | | | | | Number of Customers, million | 1,044.36 | 985.87 | 5.93% | 2,988.50 | 2,850.44 | 4.84% | | Convenience stores | 882.10 | 831.52 | 6.08% | 2,517.88 | 2,410.80 | 4.44% | | Hypermarkets | 62.66 | 65.78 | (4.74%) | 185.28 | 198.05 | (6.45%) | | Magnit Family | 34.28 | 33.02 | 3.82% | 99.16 | 94.40 | 5.04% | | Drogerie Stores | 65.32 | 55.55 | 17.58% | 186.18 | 147.19 | 26.48% | | | | | | | | | | | | |
LFL Results | Formats | 3Q 2017 - 3Q 2016[4] | | # of Stores | Average Ticket | Traffic | Sales | | Convenience Stores | 8,859 | 1.22% | (2.09)% | (0.90)% | | Hypermarkets | 221 | (2.42)% | (6.76)% | (9.01)% | | Magnit Family | 159 | (0.75)% | (5.69)% | (6.39)% | | Drogerie | 2,588 | 0.89% | (2.04)% | (1.17)% | | Total | 11,827 | 0.06% | (2.56)% | (2.50)% |
| Formats | 9M 2017 - 9M 20164 | | # of Stores | Average Ticket | Traffic | Sales | | Convenience Stores | 7,920 | 2.34% | (2.86)% | (0.59)% | | Hypermarkets | 221 | (1.96)% | (9.65)% | (11.42)% | | Magnit Family | 158 | (1.27)% | (7.97)% | (9.14)% | | Drogerie | 2,515 | 0.81% | 0.27% | 1.08% | | Total | 10,814 | 0.51% | (3.46)% | (2.97)% |
3Q[5] and 9M 20175 Key Financial Results, million RUR | | 3Q 2017 | 3Q 2016 | Growth Rate | 9M 2017 | 9M 2016 | Growth Rate | | Net Sales | 285,960.60 | 268,609.30 | 6.46% | 840,985.43 | 790,136.88 | 6.44% | | Convenience stores | 211,976.66 | 197,689.55 | 7.23% | 623,793.47 | 582,716.99 | 7.05% | | Hypermarkets | 35,844.78 | 38,338.25 | (6.50)% | 107,582.05 | 117,294.28 | (8.28)% | | Magnit Family | 14,860.96 | 14,255.56 | 4.25% | 43,588.10 | 41,748.97 | 4.41% | | Drogerie Stores | 19,995.58 | 16,998.98 | 17.63% | 56,955.61 | 44,980.90 | 26.62% | | Wholesale | 3,282.61 | 1,326.96 | 147.38% | 9,066.21 | 3,395.74 | 166.99% | | Gross Profit | 75,325.99 | 75,368.16 | (0.06%) | 227,872.48 | 217,431.15 | 4.80% | | Gross Margin, % | 26.34% | 28.06% | n/a | 27.10% | 27.52% | n/a | | EBITDAR | 32,586.94 | 38,479.48 | (15.31%) | 103,103.93 | 108,441.45 | (4.92%) | | EBITDAR Margin, % | 11.40% | 14.33% | n/a | 12.26% | 13.72% | n/a | | EBITDA | 20,660.87 | 28,654.01 | (27.90%) | 69,450.80 | 80,253.85 | (13.46%) | | EBITDA Margin, % | 7.23% | 10.67% | n/a | 8.26% | 10.16% | n/a | | EBIT | 12,212.80 | 21,830.05 | (44.06%) | 44,555.12 | 61,328.52 | (27.35%) | | EBIT Margin, % | 4.27% | 8.13% | n/a | 5.30% | 7.76% | n/a | | Net Income | 6,923.15 | 14,816.36 | (53.27%) | 27,671.59 | 40,923.61 | (32.38%) | | Net Income Margin, % | 2.42% | 5.52% | n/a | 3.29% | 5.18% | n/a |
3Q and 9M 2017 Key Financial Results, USD million[6] | | 3Q 2017 | 3Q 2016 | Growth Rate | 9M 2017 | 9M 2016 | Growth Rate | | Net sales | 4,845.19 | 4,156.46 | 16.57% | 14,416.63 | 11,557.33 | 24.74% | | Convenience stores | 3,591.64 | 3,059.05 | 17.41% | 10,693.41 | 8,523.40 | 25.46% | | Hypermarkets | 607.34 | 593.25 | 2.38% | 1,844.23 | 1,715.66 | 7.49% | | Magnit Family | 251.80 | 220.59 | 14.15% | 747.21 | 610.66 | 22.36% | | Drogerie Stores | 338.80 | 263.04 | 28.80% | 976.36 | 657.94 | 48.40% | | Wholesale | 55.62 | 20.53 | 170.87% | 155.42 | 49.67 | 212.90% | | Gross Profit | 1,276.29 | 1,166.25 | 9.44% | 3,906.31 | 3,180.37 | 22.83% | | Gross Margin, % | 26.34% | 28.06% | n/a | 27.10% | 27.52% | n/a | | EBITDAR | 552.14 | 595.43 | (7.27%) | 1,767.46 | 1,586.17 | 11.43% | | EBITDAR Margin, % | 11.40% | 14.33% | n/a | 12.26% | 13.72% | n/a | | EBITDA | 350.07 | 443.39 | (21.05%) | 1,190.56 | 1,173.87 | 1.42% | | EBITDA Margin, % | 7.23% | 10.67% | n/a | 8.26% | 10.16% | n/a | | EBIT | 206.93 | 337.80 | (38.74)% | 763.79 | 897.05 | (14.86)% | | EBIT Margin, % | 4.27% | 8.13% | n/a | 5.30% | 7.76% | n/a | | Net Income | 117.30 | 229.27 | (48.84)% | 474.36 | 598.59 | (20.75)% | | Net Income Margin, % | 2.42% | 5.52% | n/a | 3.29% | 5.18% | n/a |
Notes: 1) Net revenue in USD terms is calculated using the average exchange rate for the period. 2) This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016. 3) Please note that there may be small variations in calculation of totals, subtotals and/ or percentage change due to rounding of decimals. For further information, please contact: | Timothy Post | Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 | | Dina Svishcheva | Deputy Director, Investor Relations Email: Chistyak@magnit.ru Office: +7-861-277-4554 x 15101 | | 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 September 30, 2017, Magnit operated 36 distribution centers and 15,697 stores (11,743 convenience, 432 hypermarkets and 3,522 drogerie stores) in 2,664 cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the reviewed IFRS consolidated financial statements for 1H 2017, Magnit had revenues of RUB 555 billion and an EBITDA of RUB 49 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+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.
[1] Based on management accounts [3] Based on the average exchange rate for July 2017 - 59.6707 RUB per 1 USD, August 2017 - 59.6497 RUB per 1 USD, September 2017 - 57.6953 RUB per 1 USD [4] 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 September 1, 2016. [6] Based on the average exchange rate for 3Q 2017 - 59.0195 RUB per 1 USD, 3Q 2016 - 64.6245 RUB per 1 USD, 9M 2017 - 58.3344 RUB per 1 USD, 9M 2016 - 68.3667 RUB per 1 USD
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