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24 Aug 2016 08:01
PJSC MAGNIT - Reviewed 1H 2016 Financial ResultsPJSC MAGNIT - Reviewed 1H 2016 Financial Results
PR Newswire
London, August 24
Press Release
Krasnodar
August 24, 2016
PJSC “Magnit” Announces Reviewed 1H 2016 Results
Krasnodar, August 24, 2016: 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.
2Q and 1H 2016 Key Operating Highlights:
| 2Q 2016 | 2Q 2015 | Growth Rate | 1H 2016 | 1H 2015 | Growth Rate | |
| Number of opened stores, NET | 454 | 608 | n/a | 799 | 1,017 | n/a |
| convenience stores | 187 | 309 | n/a | 308 | 546 | n/a |
| hypermarkets | 3 | 5 | n/a | 9 | 11 | n/a |
| magnit family | 13 | 6 | n/a | 15 | 13 | n/a |
| drogerie stores | 251 | 288 | n/a | 467 | 447 | n/a |
| Total number of stores | 12,888 | 10,728 | n/a | 12,888 | 10,728 | n/a |
| convenience stores | 9,902 | 8,890 | n/a | 9,902 | 8,890 | n/a |
| hypermarkets | 228 | 201 | n/a | 228 | 201 | n/a |
| magnit family | 170 | 110 | n/a | 170 | 110 | n/a |
| drogerie stores | 2,588 | 1,527 | n/a | 2,588 | 1,527 | n/a |
| Selling space, eop, th. sq. m. | 4,677.20 | 3,928.00 | 19.07% | 4,677.20 | 3,928.00 | 19.07% |
| convenience stores | 3,236.13 | 2,866.25 | 12.90% | 3,236.13 | 2,866.25 | 12.90% |
| hypermarkets | 660.51 | 589.81 | 11.99% | 660.51 | 589.81 | 11.99% |
| magnit family | 187.05 | 122.73 | 52.41% | 187.05 | 122.73 | 52.41% |
| drogerie stores | 593.52 | 349.21 | 69.96% | 593.52 | 349.21 | 69.96% |
| Selling space growth, th. sq.m. | 153.57 | 195.27 | n/a | 263.48 | 337.36 | n/a |
| convenience stores | 73.25 | 111.56 | n/a | 116.57 | 192.94 | n/a |
| hypermarkets | 6.86 | 12.78 | n/a | 21.37 | 30.72 | n/a |
| magnit family | 15.02 | 6.61 | n/a | 16.87 | 13.66 | n/a |
| drogerie stores | 58.45 | 64.31 | n/a | 108.68 | 100.04 | n/a |
| Number of customers, million | 971.04 | 851.22 | 14.08% | 1,864.57 | 1,617.61 | 15.27% |
| convenience stores | 825.26 | 729.07 | 13.19% | 1,579.27 | 1,387.21 | 13.84% |
| hypermarkets | 66.86 | 66.90 | (0.07)% | 132.27 | 127.91 | 3.41% |
| magnit family | 31.72 | 24.43 | 29.85% | 61.38 | 45.32 | 35.43% |
| drogerie stores | 47.21 | 30.82 | 53.18% | 91.64 | 57.17 | 60.31% |
LFL Results
| Formats | 2Q 2016 - 2Q 2015[1] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,413 | (1.00)% | 2.05% | 1.02% |
| Hypermarkets | 199 | (1.17)% | (10.08)% | (11.12)% |
| Magnit Family | 106 | (1.04)% | (6.60)% | (7.57)% |
| Drogeries | 1,376 | 10.17% | (5.33)% | 4.30% |
| Total | 10,094 | (1.95)% | 0.55% | (1.41)% |
| Formats | 1H 2016 – 1H 2015[1] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,329 | (0.36)% | 2.21% | 1.85% |
| Hypermarkets | 198 | (2.48)% | (7.86)% | (10.15)% |
| Magnit Family | 106 | (2.31)% | (4.03)% | (6.25)% |
| Cosmetics Stores | 1,361 | 10.86% | (4.00)% | 6.42% |
| Total | 9,994 | (1.51)% | 1.00% | (0.52)% |
2Q[2]and 1H 2016 Key Financial Results[3], million RUR
| 2Q 2016 | 2Q 2015 | Growth Rate | 1H 2016 | 1H 2015 | Growth Rate | |
| Net sales | 266,224.84 | 236,052.37 | 12.78% | 521,527.58 | 454 ,808.63 | 14.67% |
| convenience stores | 197,517.70 | 175,837.64 | 12.33% | 385,027.44 | 338,433.76 | 13.77% |
| hypermarkets | 39,483.14 | 40,640.38 | (2.85)% | 78,956.03 | 79,371.13 | (0.52)% |
| magnit family | 13,978.32 | 10,734.92 | 30.21% | 27,493.41 | 20,336.82 | 35.19% |
| drogerie stores | 14,044.64 | 8,253.35 | 70.17% | 27,981.92 | 15,556.35 | 79.87% |
| wholesale | 1,201.04 | 586.08 | 104.93% | 2,068.78 | 1,110.57 | 86.28% |
| Gross profit | 77,027.06 | 67,944.14 | 13.37% | 142,062.99 | 127,060.41 | 11.81% |
| Gross margin,% | 28.93% | 28.78% | n/a | 27.24% | 27.94% | n/a |
| EBITDAR | 41,153.08 | 35,386.26 | 16.30% | 69,961.97 | 62,291.36 | 12.31% |
| EBITDAR margin, % | 15.46% | 14.99% | n/a | 13.41% | 13.70% | n/a |
| EBITDA | 31,810.44 | 28,232.43 | 12.67% | 51,599.85 | 48,627.66 | 6.11% |
| EBITDA margin, % | 11.95% | 11.96% | n/a | 9.89% | 10.69% | n/a |
| EBIT | 25,678.61 | 23,199.53 | 10.69% | 39,498.47 | 38,594.03 | 2.34% |
| EBIT margin, % | 9.65% | 9.83% | n/a | 7.57% | 8.49% | n/a |
| Net income | 17,863.96 | 15,787.82 | 13.15% | 26,107.24 | 25,265.66 | 3.33% |
| Net income margin, % | 6.71% | 6.69% | n/a | 5.01% | 5.56% | n/a |
2Q and 1H 2016 Key Financial Results, US$ million[4]
| 2Q 2016 | 2Q 2015 | Growth Rate | 1H 2016 | 1H 2015 | Growth Rate | |
| Net sales | 4,040.54 | 4,483.06 | (9.87)% | 7,423.00 | 7,923.94 | (6.32)% |
| convenience stores | 2,997.77 | 3,339.47 | (10.23)% | 5,480.17 | 5,896.39 | (7.06)% |
| hypermarkets | 599.23 | 771.83 | (22.36)% | 1,123.79 | 1,382.85 | (18.73)% |
| magnit family | 212.15 | 203.88 | 4.06% | 391.32 | 354.32 | 10.44% |
| drogerie stores | 213.16 | 156.75 | 35.99% | 398.27 | 271.03 | 46.95% |
| wholesale | 18.23 | 11.13 | 63.79% | 29.45 | 19.35 | 52.20% |
| Gross profit | 1,169.06 | 1,290.38 | (9.40)% | 2,022.01 | 2,213.72 | (8.66)% |
| Gross margin,% | 28.93% | 28.78% | n/a | 27.24% | 27.94% | n/a |
| EBITDAR | 624.59 | 672.05 | (7.06)% | 995.78 | 1,085.28 | (8.25)% |
| EBITDAR margin, % | 15.46% | 14.99% | n/a | 13.41% | 13.70% | n/a |
| EBITDA | 482.79 | 536.18 | (9.96)% | 734.43 | 847.22 | (13.31)% |
| EBITDA margin, % | 11.95% | 11.96% | n/a | 9.89% | 10.69% | n/a |
| EBIT | 389.73 | 440.60 | (11.55)% | 562.19 | 672.41 | (16.39)% |
| EBIT margin, % | 9.65% | 9.83% | n/a | 7.57% | 8.49% | n/a |
| Net income | 271.12 | 299.84 | (9.58)% | 371.59 | 440.19 | (15.58)% |
| Net income margin, % | 6.71% | 6.69% | n/a | 5.01% | 5.56% | n/a |
Note: net revenue in US$ terms is calculated using the average exchange rate for the period.
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:
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.
[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 June 1, 2015.
[2] Management accounts
[3] Please follow the link to view 1H 2016 financial report http://ir.magnit.com/en/financial-reports/
[4] Based on the average exchange rate for 2Q 2016 - 65.8883 RUB per 1 USD, 2Q 2015 –52.6543 RUB per 1 USD, 1H 2016 - 70.2583 RUB per 1 USD, 1H 2015 –57.3968 RUB per 1 USD
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