21 Jul 2017 08:02
PJSC MAGNIT - Unaudited 1H 2017 Financial ResultsPJSC MAGNIT - Unaudited 1H 2017 Financial Results
PR Newswire
London, July 21
Press Release
Krasnodar
July 21, 2017
PJSC “Magnit” Announces Unaudited 1H 2017 Results
Krasnodar, Russia (July 21, 2017): Magnit PJSC, one of Russia’s leading retailers (MOEX and LSE: MGNT) announces its unaudited 1H 2017 results prepared in accordance with IFRS[1].
During 1H 2017 Magnit added (net) 785 stores. The total store base as of June 30, 2017 reached 14,844 stores (11,114 convenience stores, 240 hypermarkets, 190 “Magnit Family” stores and 3,300 drogerie stores). Selling space increased by 13.73% in comparison with 1H 2016 from 4.68 million sq. m. to 5.32 million sq. m.
During the first half 2017 Magnit refurbished 830 convenience stores. 655 new stores have been opened under the new concept. Total number of the convenience stores in the new concept is 2,162 as of June 30, 2017.
Revenue increased by 6.4% from 522 billion RUR in 1H 2016 to 555 billion RUR in 1H 2017.
Gross Profit increased from 142 billion RUR in 1H 2016 to 153 billion RUR in 1H 2017. Gross Margin in 1H 2017 was 27.5%.
EBITDA in 1H 2017 was 49 billion RUR. EBITDA margin in the 1H of 2017 was 8.8%.
Net Income in 1H 2017 was 21 billion RUR. Net Income Margin in 1H 2017 was 3.8%.
According to Rosstat, CPI in 1H 2017 was 4.4% Y-o-Y compared to 7.5% in 1H 2016.
Food inflation in 1H 2017 was 4.8% Y-o-Y vs 6.2% in 1H 2016.
2Q 2017 Monthly Operating Highlights:
| April | Y-o-Y, % | May | Y-o-Y, % | June | Y-o-Y, % | |||||
| New Store Openings (NET) | 125 | n/a | 165 | n/a | 245 | n/a | ||||
| Convenience stores | 101 | n/a | 124 | n/a | 180 | n/a | ||||
| Hypermarkets | 0 | n/a | 2 | n/a | 1 | n/a | ||||
| Magnit Family | 1 | n/a | 1 | n/a | (1) | n/a | ||||
| Drogerie Stores | 23 | n/a | 38 | n/a | 65 | n/a | ||||
| Number of Stores (EOP) | 14,434 | n/a | 14,599 | n/a | 14,844 | n/a | ||||
| Convenience stores | 10,810 | n/a | 10,934 | n/a | 11,114 | n/a | ||||
| Hypermarkets | 237 | n/a | 239 | n/a | 240 | n/a | ||||
| Magnit Family | 190 | n/a | 191 | n/a | 190 | n/a | ||||
| Drogerie Stores | 3,197 | n/a | 3,235 | n/a | 3,300 | n/a | ||||
| New Selling Space, th. sq. m. | 40.95 | n/a | 55.55 | n/a | 75.11 | n/a | ||||
| Convenience stores | 34.13 | n/a | 40.30 | n/a | 58.50 | n/a | ||||
| Hypermarkets | 0.00 | n/a | 3.98 | n/a | 2.54 | n/a | ||||
| Magnit Family | 1.07 | n/a | 1.43 | n/a | (2.18) | n/a | ||||
| Drogerie Stores | 5.75 | n/a | 9.83 | n/a | 16.25 | n/a | ||||
| Total Selling Space (EOP), th. sq. m. | 5,188.94 | 13.44% | 5,244.49 | 12.95% | 5,319.60 | 13.73% | ||||
| Convenience stores | 3,552.75 | 11.54% | 3,593.05 | 11.50% | 3,651.55 | 12.84% | ||||
| Hypermarkets | 684.54 | 3.97% | 688.53 | 4.57% | 691.07 | 4.63% | ||||
| Magnit Family | 209.66 | 18.89% | 211.09 | 15.17% | 208.91 | 11.69% | ||||
| Drogerie Stores | 741.99 | 33.82% | 751.82 | 29.85% | 768.07 | 29.41% | ||||
| Number of Customers, million | 328.00 | 2.65% | 348.44 | 7.29% | 341.62 | 4.55% | ||||
| Convenience stores | 276.41 | 1.80% | 295.00 | 6.71% | 288.42 | 4.02% | ||||
| Hypermarkets | 20.74 | (7.79%) | 21.38 | (3.80%) | 21.27 | (3.97%) | ||||
| Magnit Family | 10.94 | 4.65% | 11.47 | 8.46% | 11.27 | 5.31% | ||||
| Drogerie Stores | 19.91 | 32.27% | 20.59 | 32.77% | 20.67 | 24.20% | ||||
| Retail Sales[2], million RUR | 92,038.46 | 4.40% | 97,135.56 | 10.70% | 95,495.90 | 7.15% | ||||
| Convenience stores | 69,093.40 | 5.41% | 73,534.19 | 12.11% | 71,907.16 | 8.33% | ||||
| Hypermarkets | 12,154.80 | (9.71%) | 12,454.14 | (4.15%) | 12,330.59 | (5.35%) | ||||
| Magnit Family | 4,852.63 | 3.30% | 5,043.63 | 9.25% | 4,973.78 | 6.64% | ||||
| Drogerie Stores | 5,937.63 | 33.48% | 6,103.59 | 34.33% | 6,284.36 | 24.38% | ||||
| Retail Sales2, million USD[3] | 1,630.98 | 23.39% | 1,699.01 | 27.15% | 1,651.29 | 21.01% | ||||
| Convenience stores | 1,224.38 | 24.57% | 1,286.19 | 28.77% | 1,243.40 | 22.35% | ||||
| Hypermarkets | 215.39 | 6.71% | 217.84 | 10.09% | 213.22 | 6.89% | ||||
| Magnit Family | 85.99 | 22.09% | 88.22 | 25.48% | 86.01 | 20.43% | ||||
| Drogerie Stores | 105.22 | 57.75% | 106.76 | 54.29% | 108.67 | 40.47% | ||||
2Q and 1H 2017 Operating Highlights:
| 2Q 2017 | 2Q 2016 | Y-o-Y, % | 1H 2017 | 1H 2016 | Y-o-Y, % | |||||
| New Store Openings (NET) | 535 | 454 | n/a | 785 | 799 | n/a | ||||
| Convenience stores | 405 | 187 | n/a | 593 | 308 | n/a | ||||
| Hypermarkets | 3 | 3 | n/a | 3 | 9 | n/a | ||||
| Magnit Family | 1 | 13 | n/a | (4) | 15 | n/a | ||||
| Drogerie Stores | 126 | 251 | n/a | 193 | 467 | n/a | ||||
| Number of Stores (EOP) | 14,844 | 12,888 | n/a | 14,844 | 12,888 | n/a | ||||
| Convenience stores | 11,114 | 9,902 | n/a | 11,114 | 9,902 | n/a | ||||
| Hypermarkets | 240 | 228 | n/a | 240 | 228 | n/a | ||||
| Magnit Family | 190 | 170 | n/a | 190 | 170 | n/a | ||||
| Drogerie Stores | 3,300 | 2,588 | n/a | 3,300 | 2,588 | n/a | ||||
| New Selling Space, th. sq. m. | 171.61 | 153.57 | n/a | 251.93 | 263.48 | n/a | ||||
| Convenience stores | 132.93 | 73.25 | n/a | 199.15 | 116.57 | n/a | ||||
| Hypermarkets | 6.52 | 6.86 | n/a | 7.39 | 21.37 | n/a | ||||
| Magnit Family | 0.33 | 15.02 | n/a | (3.85) | 16.87 | n/a | ||||
| Drogerie Stores | 31.83 | 58.45 | n/a | 49.24 | 108.68 | n/a | ||||
| Total Selling Space (EOP), th. sq. m. | 5,319.60 | 4,677.20 | 13.73% | 5,319.60 | 4,677.20 | 13.73% | ||||
| Convenience stores | 3,651.55 | 3,236.13 | 12.84% | 3,651.55 | 3,236.13 | 12.84% | ||||
| Hypermarkets | 691.07 | 660.51 | 4.63% | 691.07 | 660.51 | 4.63% | ||||
| Magnit Family | 208.91 | 187.05 | 11.69% | 208.91 | 187.05 | 11.69% | ||||
| Drogerie Stores | 768.07 | 593.52 | 29.41% | 768.07 | 593.52 | 29.41% | ||||
| Number of Customers, million | 1,018.05 | 971.04 | 4.84% | 1,944.14 | 1,864.57 | 4.27% | ||||
| Convenience stores | 859.83 | 825.26 | 4.19% | 1,635.78 | 1,579.27 | 3.58% | ||||
| Hypermarkets | 63.38 | 66.86 | (5.20%) | 122.62 | 132.27 | (7.30%) | ||||
| Magnit Family | 33.67 | 31.72 | 6.14% | 64.88 | 61.38 | 5.70% | ||||
| Drogerie Stores | 61.17 | 47.21 | 29.58% | 120.86 | 91.64 | 31.88% | ||||
| Retail Sales2, million RUR | 284,669.92 | 265,023.79 | 7.41% | 549,241.24 | 519,458.80 | 5.73% | ||||
| Convenience stores | 214,534.75 | 197,517.70 | 8.62% | 411,816.81 | 385,027.44 | 6.96% | ||||
| Hypermarkets | 36,939.54 | 39,483.14 | (6.44%) | 71,737.27 | 78,956.03 | (9.14%) | ||||
| Magnit Family | 14,870.04 | 13,978.32 | 6.38% | 28,727.13 | 27,493.41 | 4.49% | ||||
| Drogerie Stores | 18,325.59 | 14,044.64 | 30.48% | 36,960.03 | 27,981.92 | 32.09% | ||||
| Retail Sales2, million USD[4] | 4,981.53 | 4,022.32 | 23.85% | 9,471.93 | 7,393.56 | 28.11% | ||||
| Convenience stores | 3,754.21 | 2,997.77 | 25.23% | 7,101.98 | 5,480.17 | 29.59% | ||||
| Hypermarkets | 646.42 | 599.23 | 7.87% | 1,237.14 | 1,123.79 | 10.09% | ||||
| Magnit Family | 260.22 | 212.15 | 22.66% | 495.41 | 391.32 | 26.60% | ||||
| Drogerie Stores | 320.69 | 213.16 | 50.44% | 637.39 | 398.27 | 60.04% | ||||
LFL Results
| Formats | 2Q 2017 - 2Q 2016[5] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,890 | 3.89% | (3.25%) | 0.50% |
| Hypermarkets | 221 | (1.14%) | (8.92%) | (9.96%) |
| Magnit Family | 150 | (0.51%) | (7.42%) | (7.90%) |
| Drogerie | 2,378 | 1.46% | 2.79% | 4.29% |
| Total | 11,639 | 2.17% | (3.51%) | (1.42%) |
| Formats | 1H 2017 – 1H 20165 | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,557 | 2.90% | (3.42%) | (0.62%) |
| Hypermarkets | 221 | (1.67%) | (11.22%) | (12.70%) |
| Magnit Family | 150 | (1.47%) | (9.13%) | (10.46%) |
| Drogerie | 2,337 | 0.78% | 1.46% | 2.26% |
| Total | 11,265 | 0.97% | (3.99%) | (3.06%) |
2Q and 1H 2017 Key Financial Results, million RUR
| 2Q 2017 | 2Q 2016 | Growth Rate | 1H 2017 | 1H 2016 | Growth Rate | |
| Net Sales | 288,041.75 | 266,224.84 | 8.19% | 555,024.83 | 521,527.58 | 6.42% |
| Convenience stores | 214,534.75 | 197,517.70 | 8.62% | 411,816.81 | 385,027.44 | 6.96% |
| Hypermarkets | 36,939.54 | 39,483.14 | (6.44%) | 71,737.27 | 78,956.03 | (9.14%) |
| Magnit Family | 14,870.04 | 13,978.32 | 6.38% | 28,727.13 | 27,493.41 | 4.49% |
| Drogerie Stores | 18,325.59 | 14,044.64 | 30.48% | 36,960.03 | 27,981.92 | 32.09% |
| Wholesale | 3,371.84 | 1,201.04 | 180.74% | 5,783.60 | 2,068.78 | 179.57% |
| Gross Profit | 80,659.54 | 77,027.06 | 4.72% | 152,546.85 | 142,062.99 | 7.38% |
| Gross Margin,% | 28.00% | 28.93% | n/a | 27.48% | 27.24% | n/a |
| EBITDAR | 38,871.40 | 41,153.08 | (5.54%) | 70,492.60 | 69,961.97 | 0.76% |
| EBITDAR Margin, % | 13.50% | 15.46% | n/a | 12.70% | 13.41% | n/a |
| EBITDA | 27,770.38 | 31,810.44 | (12.70%) | 48,765.80 | 51,599.85 | (5.49%) |
| EBITDA Margin, % | 9.64% | 11.95% | n/a | 8.79% | 9.89% | n/a |
| EBIT | 19,488.27 | 25,678.61 | (24.11%) | 32,398.43 | 39,498.47 | (17.98%) |
| EBIT Margin, % | 6.77% | 9.65% | n/a | 5.84% | 7.57% | n/a |
| Net Income | 13,254.95 | 17,863.96 | (25.80%) | 20,798.04 | 26,107.24 | (20.34%) |
| Net Income Margin, % | 4.60% | 6.71% | n/a | 3.75% | 5.01% | n/a |
2Q and 1H 2017 Key Financial Results, USD million[6]
| 2Q 2017 | 2Q 2016 | Growth Rate | 1H 2017 | 1H 2016 | Growth Rate | |
| Net sales | 5,040.53 | 4,040.54 | 24.75% | 9, 571.67 | 7,423.00 | 28.95% |
| Convenience stores | 3,754.21 | 2,997.77 | 25.23% | 7,101.98 | 5,480.17 | 29.59% |
| Hypermarkets | 646.42 | 599.23 | 7.88% | 1,237.14 | 1,123.79 | 10.09% |
| Magnit Family | 260.22 | 212.15 | 22.66% | 495.41 | 391.32 | 26.60% |
| Drogerie Stores | 320.69 | 213.16 | 50.45% | 637.39 | 398.27 | 60.04% |
| Wholesale | 59.00 | 18.23 | 223.64% | 99.74 | 29.45 | 238.68% |
| Gross Profit | 1,411.49 | 1,169.06 | 20.74% | 2,630.74 | 2,022.01 | 30.11% |
| Gross Margin,% | 28.00% | 28.93% | n/a | 27.48% | 27.24% | n/a |
| EBITDAR | 680.22 | 624.59 | 8.91% | 1,215.68 | 995.78 | 22.08% |
| EBITDAR Margin, % | 13.50% | 15.46% | n/a | 12.70% | 13.41% | n/a |
| EBITDA | 485.96 | 482.79 | 0.66% | 840.99 | 734.43 | 14.51% |
| EBITDA Margin, % | 9.64% | 11.95% | n/a | 8.79% | 9.89% | n/a |
| EBIT | 341.03 | 389.73 | (12.50%) | 558.73 | 562.19 | (0.62%) |
| EBIT Margin, % | 6.77% | 9.65% | n/a | 5.84% | 7.57% | n/a |
| Net Income | 231.95 | 271.12 | (14.45%) | 358.67 | 371.59 | (3.48%) |
| Net Income Margin, % | 4.60% | 6.71% | n/a | 3.75% | 5.01% | n/a |
Notes:
Net revenue in USD 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.
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 June 30, 2017, Magnit operated 35 distribution centers and 14,844 stores (11,114 convenience, 430 hypermarkets and 3,300 drogerie stores) in 2,567 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS management accounts 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
[2] Excluding wholesale
[3] Based on the average exchange rate for April 2017 – 56.4315 RUB per 1 USD, May 2017 – 57.1720 RUB per 1 USD, June 2017 - 57.8311 RUB per 1 USD
[4] Based on the average exchange rate for 2Q 2017 – 57.1451 RUB per 1 USD, 2Q 2016 – 65.8883 RUB per 1 USD, 1H 2017 – 57.9862 RUB per 1 USD, 1H 2016 – 70.2583 RUB per 1 USD
[5] 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, 2016.
[6] Based on the average exchange rate for 2Q 2017 - 57.1451 RUB per 1 USD, 2Q 2016 – 65.8883 RUB per 1 USD, 1H 2017 - 57.9862 RUB per 1 USD, 1H 2016 – 70.2583 RUB per 1 USD