21 Apr 2017 08:00
PJSC MAGNIT - Unaudited 1Q 2017 Financial Results1st Quarter Results -PJSC MAGNIT - Unaudited 1Q 2017 Financial Results1st Quarter Results -
PR Newswire
London, April 21
Press Release
Krasnodar
April 21, 2017
PJSC “Magnit” Announces Unaudited 1Q 2017 Results
Krasnodar, Russia (April 21, 2017): Magnit PJSC, one of Russia’s leading retailers (MOEX and LSE: MGNT) announces its unaudited 1Q 2017 results prepared in accordance with IFRS[1].
During 1Q 2017 the Company added (net) 250 stores (188 convenience stores and 67 drogerie stores) and increased its selling space by 13.80% in comparison with 1Q 2016 from 4.52 million sq. m. to 5.15 million sq. m. The total store base as of March 31, 2017 reached 14,309 stores (10,709 convenience stores, 237 hypermarkets, 189 “Magnit Family” stores and 3,174 drogerie stores).
Revenue increased from 255.30 billion RUR in 1Q 2016 to 266.98 billion RUR in 1Q 2017.
Gross Profit increased from 65.04 billion RUR in 1Q 2016 to 71.89 billion RUR in 1Q 2017. Gross Margin in 1Q 2017 was 26.93%.
EBITDA increased from 19.79 billion RUR in 1Q 2016 to 21.00 billion RUR in 1Q 2017. EBITDA margin in the 1Q of 2017 was 7.86%.
Net Income was 7.54 billion RUR in 1Q 2017. Net Income Margin for 1Q 2017 was 2.83%.
According to Rosstat, general CPI in 2017 was the following: in January 0.6%, February 0.2%, March 0.1% (2016: January 1.0%, February 0.6%, March 0.5%).
General CPI in 1Q 2017 was 1.0% compared to 2.1% in 1Q 2016.
Food inflation in 2017 was the following: in January 0.9%, February 0.2%, March 0.1% (2016: January 1.2%, February 0.7%, March 0.4%).
Food inflation in 1Q 2017 was 1.2% compared to 2.3% in 1Q 2016.
January 2017 Key Operating and Financial Highlights:
| January 2017 | January 2016 | Growth Rate | |
| Number of opened stores, NET | 30 | 64 | n/a |
| convenience stores | 19 | 12 | n/a |
| hypermarkets | (1) | 0 | n/a |
| magnit family | (3) | (1) | n/a |
| drogerie stores | 15 | 53 | n/a |
| Total number of stores | 14,089 | 12,153 | n/a |
| convenience stores | 10,540 | 9,606 | n/a |
| hypermarkets | 236 | 219 | n/a |
| magnit family | 191 | 154 | n/a |
| drogerie stores | 3,122 | 2,174 | n/a |
| Selling space, eop, th. sq. m. | 5,074.57 | 4,430.42 | 14.54% |
| convenience stores | 3,459.67 | 3,124.66 | 10.72% |
| hypermarkets | 682.09 | 639.14 | 6.72% |
| magnit family | 210.45 | 169.26 | 24.34% |
| drogerie stores | 722.35 | 497.36 | 45.24% |
| Selling space growth, th. sq.m. | 6.90 | 16.70 | n/a |
| convenience stores | 7.27 | 5.10 | n/a |
| hypermarkets | (1.58) | 0 | n/a |
| magnit family | (2.31) | (0.92) | n/a |
| drogerie stores | 3.51 | 12.52 | n/a |
| Number of customers, million | 299.35 | 280.13 | 6.86% |
| convenience stores | 251.48 | 236.46 | 6.35% |
| hypermarkets | 19.10 | 20.83 | (8.30)% |
| magnit family | 10.19 | 9.40 | 8.38% |
| drogerie stores | 18.58 | 13.44 | 38.23% |
| Net retail sales, million RUR | 85,188.43 | 80,468.24 | 5.87% |
| convenience stores | 63,963.51 | 59,501.40 | 7.50% |
| hypermarkets | 11,084.10 | 12,549.55 | (11.68)% |
| magnit family | 4,461.90 | 4,270.65 | 4.48% |
| drogerie stores | 5,678.92 | 4,146.64 | 36.95% |
| Net retail sales, million US$[2] | 1,420.79 | 1,054.45 | 34.74% |
| convenience stores | 1,066.80 | 779.71 | 36.82% |
| hypermarkets | 184.86 | 164.45 | 12.41% |
| magnit family | 74.42 | 55.96 | 32.98% |
| drogerie stores | 94.71 | 54.34 | 74.31% |
February and 2M 2017 Key Operating and Financial Highlights:
| February 2017 | February 2016 | Growth Rate | 2? 2017 | 2? 2016 | Growth Rate | |
| Number of opened stores, NET | 70 | 149 | n/a | 100 | 213 | n/a |
| convenience stores | 66 | 57 | n/a | 85 | 69 | n/a |
| hypermarkets | 1 | 4 | n/a | 0 | 4 | n/a |
| magnit family | (2) | 2 | n/a | (5) | 1 | n/a |
| drogerie stores | 5 | 86 | n/a | 20 | 139 | n/a |
| Total number of stores | 14,159 | 12,302 | n/a | 14,159 | 12,302 | n/a |
| convenience stores | 10,606 | 9,663 | n/a | 10,606 | 9,663 | n/a |
| hypermarkets | 237 | 223 | n/a | 237 | 223 | n/a |
| magnit family | 189 | 156 | n/a | 189 | 156 | n/a |
| drogerie stores | 3,127 | 2,260 | n/a | 3,127 | 2,260 | n/a |
| Selling space, eop, th. sq. m. | 5,100.27 | 4,484.81 | 13.72% | 5,100.27 | 4,484.81 | 13.72% |
| convenience stores | 3,482.84 | 3,143.96 | 10.78% | 3,482.84 | 3,143.96 | 10.78% |
| hypermarkets | 684.54 | 652.47 | 4.92% | 684.54 | 652.47 | 4.92% |
| magnit family | 208.75 | 171.16 | 21.96% | 208.75 | 171.16 | 21.96% |
| drogerie stores | 724.13 | 517.23 | 40.00% | 724.13 | 517.23 | 40.00% |
| Selling space growth, th. sq. m. | 25.70 | 54.39 | n/a | 32.60 | 71.09 | n/a |
| convenience stores | 23.17 | 19.30 | n/a | 30.44 | 24.40 | n/a |
| hypermarkets | 2.45 | 13.33 | n/a | 0.87 | 13.33 | n/a |
| magnit family | (1.70) | 1.90 | n/a | (4.01) | 0.98 | n/a |
| drogerie stores | 1.78 | 19.87 | n/a | 5.29 | 32.39 | n/a |
| Number of customers, million | 292.20 | 292.27 | (0.02)% | 591.55 | 572.45 | 3.34% |
| convenience stores | 244.40 | 246.28 | (0.77)% | 495.88 | 482.80 | 2.71% |
| hypermarkets | 18.65 | 21.32 | (12.50)% | 37.75 | 42.19 | (10.53)% |
| magnit family | 9.77 | 9.79 | (0.21)% | 19.96 | 19.14 | 4.26% |
| drogerie stores | 19.38 | 14.87 | 30.34% | 37.97 | 28.32 | 34.07% |
| Net retail sales, million RUR | 85,274.17 | 84,002.48 | 1.51% | 170,462.61 | 164,470.72 | 3.64% |
| convenience stores | 63,259.39 | 61,641.01 | 2.63% | 127,222.91 | 121,142.41 | 5.02% |
| hypermarkets | 11,262.05 | 13,044.46 | (13.66)% | 22,346.15 | 25,594.01 | (12.69)% |
| magnit family | 4,460.38 | 4,508.85 | (1.07)% | 8,922.28 | 8,779.50 | 1.63% |
| drogerie stores | 6,292.34 | 4,808.16 | 30.87% | 11,971.27 | 8,954.80 | 33.69% |
| Net retail sales, million US$[3] | 1,460.17 | 1,087.70 | 34.24% | 2,878.52 | 2,142.77 | 34.34% |
| convenience stores | 1,083.21 | 798.15 | 35.71% | 2,148.35 | 1,578.28 | 36.12% |
| hypermarkets | 192.84 | 168.90 | 14.17% | 377.35 | 333.45 | 13.17% |
| magnit family | 76.38 | 58.38 | 30.82% | 150.67 | 114.38 | 31.72% |
| drogerie stores | 107.75 | 62.26 | 73.06% | 202.15 | 116.67 | 73.28% |
March and 3M 2017 Key Operating and Financial Highlights:
| March 2017 | March 2016 | Growth Rate | 3? 2017 | 3? 2016 | Growth Rate | |
| Number of opened stores, NET | 150 | 132 | n/a | 250 | 345 | n/a |
| convenience stores | 103 | 52 | n/a | 188 | 121 | n/a |
| hypermarkets | 0 | 2 | n/a | 0 | 6 | n/a |
| magnit family | 0 | 1 | n/a | (5) | 2 | n/a |
| drogerie stores | 47 | 77 | n/a | 67 | 216 | n/a |
| Total number of stores | 14,309 | 12,434 | n/a | 14,309 | 12,434 | n/a |
| convenience stores | 10,709 | 9,715 | n/a | 10,709 | 9,715 | n/a |
| hypermarkets | 237 | 225 | n/a | 237 | 225 | n/a |
| magnit family | 189 | 157 | n/a | 189 | 157 | n/a |
| drogerie stores | 3,174 | 2,337 | n/a | 3,174 | 2,337 | n/a |
| Selling space, eop, th. sq. m. | 5,147.99 | 4,523.63 | 13.80% | 5,147.99 | 4,523.63 | 13.80% |
| convenience stores | 3,518.62 | 3,162.88 | 11.25% | 3,518.62 | 3,162.88 | 11.25% |
| hypermarkets | 684.54 | 653,65 | 4.73% | 684.54 | 653.65 | 4.73% |
| magnit family | 208.59 | 172.03 | 21.25% | 208.59 | 172.03 | 21.25% |
| drogerie stores | 736.24 | 535.07 | 37.60% | 736.24 | 535.07 | 37.60% |
| Selling space growth, th. sq.m. | 47.72 | 38.81 | n/a | 80.32 | 109.91 | n/a |
| convenience stores | 35.78 | 18.92 | n/a | 66.22 | 43.32 | n/a |
| hypermarkets | 0.00 | 1.18 | n/a | 0.87 | 14.51 | n/a |
| magnit family | (0.16) | 0.87 | n/a | (4.17) | 1.85 | n/a |
| drogerie stores | 12.11 | 17.84 | n/a | 17.40 | 50.23 | n/a |
| Number of customers, million | 334.53 | 321.07 | 4.19% | 926.08 | 893.52 | 3.64% |
| convenience stores | 280.07 | 271.22 | 3.27% | 775.95 | 754.01 | 2.91% |
| hypermarkets | 21.49 | 23.22 | (7.46)% | 59.24 | 65.42 | (9.44)% |
| magnit family | 11.24 | 10.51 | 6.96% | 31.20 | 29.66 | 5.22% |
| drogerie stores | 21.72 | 16.12 | 34.78% | 59.69 | 44.44 | 34.32% |
| Net retail sales, million RUR | 94,108.71 | 89,964.28 | 4.61% | 264,571.32 | 254,435.00 | 3.98% |
| convenience stores | 70,059.16 | 66,367.33 | 5.56% | 197,282.06 | 187,509.74 | 5.21% |
| hypermarkets | 12,451.58 | 13,878.89 | (10.28)% | 34,797.73 | 39,472.89 | (11.84)% |
| magnit family | 4,934.81 | 4,735.59 | 4.21% | 13,857.09 | 13,515.09 | 2.53% |
| drogerie stores | 6,663.17 | 4,982.48 | 33.73% | 18,634.44 | 13,937.28 | 33.70% |
| Net retail sales, million US$[4] | 1,619.52 | 1,275.91 | 26.93% | 4,496.71 | 3,409.36 | 31.89% |
| convenience stores | 1,205.65 | 941.25 | 28.09% | 3,353.05 | 2,512.58 | 33.45% |
| hypermarkets | 214.28 | 196.84 | 8.86% | 591.43 | 528.93 | 11.82% |
| magnit family | 84.92 | 67.16 | 26.45% | 235.52 | 181.10 | 30.05% |
| drogerie stores | 114.67 | 70.66 | 62.27% | 316.72 | 186.76 | 69.59% |
LFL Results
| Formats | 1Q 2017 - 1Q 2016[5] | |||
| # of Stores | Average Ticket | Traffic | Sales | |
| Convenience Stores | 8,932 | 1.80% | (3.81)% | (2.08)% |
| Hypermarkets | 220 | (2.18)% | (13.61)% | (15.49)% |
| Magnit Family | 144 | (2.40)% | (11.09)% | (13.22)% |
| Drogeries | 2,127 | 0.14% | (0.21)% | (0.07)% |
| Total | 11,423 | (0.14)% | (4.64)% | (4.77)% |
1Q 2017 Key Financial Results, million RUR
| 1Q 2017 | 1Q 2016 | Growth Rate | |
| Net sales | 266,983.08 | 255,302.74 | 4.58% |
| convenience stores | 197,282.06 | 187,509.74 | 5.21% |
| hypermarkets | 34,797.73 | 39,472.89 | (11.84)% |
| magnit family | 13,857.09 | 13,515.09 | 2.53% |
| drogerie stores | 18,634.44 | 13,937.28 | 33.70% |
| wholesale | 2,411.76 | 867.74 | 177.94% |
| Gross profit | 71,887.31 | 65,035.93 | 10.53% |
| Gross margin,% | 26.93% | 25.47% | n/a |
| EBITDAR | 31.621.20 | 28,808.89 | 9.76% |
| EBITDAR margin, % | 11.84% | 11.28% | n/a |
| EBITDA | 20,995.41 | 19,789.41 | 6.09% |
| EBITDA margin, % | 7.86% | 7.75% | n/a |
| EBIT | 12,910.15 | 13,819.87 | (6.58)% |
| EBIT margin, % | 4.84% | 5.41% | n/a |
| Net income | 7,543.09 | 8,243.28 | (8.49)% |
| Net income margin, % | 2.83% | 3.23% | n/a |
1Q 2017 Key Financial Results, US$ million[6]
| 1Q 2017 | 1Q 2016 | Growth Rate | |
| Net sales | 4,537.70 | 3,420.99 | 32.64% |
| convenience stores | 3,353.05 | 2,512.58 | 33.45% |
| hypermarkets | 591.43 | 528.93 | 11.82% |
| magnit family | 235.52 | 181.10 | 30.05% |
| drogerie stores | 316.72 | 186.76 | 69.59% |
| wholesale | 40.99 | 11.63 | 252.45% |
| Gross profit | 1,221.81 | 871.46 | 40.20% |
| Gross margin, % | 26.93% | 25.47% | n/a |
| EBITDAR | 537.44 | 386.03 | 39.22% |
| EBITDAR margin, % | 11.84% | 11.28% | n/a |
| EBITDA | 356.84 | 265.17 | 34.57% |
| EBITDA margin, % | 7.86% | 7.75% | n/a |
| EBIT | 219.42 | 185.18 | 18.49% |
| EBIT margin, % | 4.84% | 5.41% | n/a |
| Net income | 128.20 | 110.46 | 16.06% |
| Net income margin, % | 2.83% | 3.23% | 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. 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 RelationsEmail: post@magnit.ruOffice: +7-861-277-4554 x 17600Mobile: +7-961-511-7678Direct Line: +7-861-277-4562 |
| Investor Relations Office | MagnitIR@magnit.ruDirect Line: +7-861-277-4562Website: ir.magnit.com/ |
| Media Inquiries | Media Relations Departmentpress@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 March 31, 2017, Magnit operated 35 distribution centers and 14,089 stores (10,540 convenience, 427 hypermarkets and 3,122 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] Based on management accounts
[2] Based on the average exchange rate for January 2017 - 59.9583 RUB per 1 USD, January 2016 – 76.3127 RUB per 1 USD
[3] Based on the average exchange rate for February 2017 – 58.4000 RUB per 1 USD, February 2016 – 77.2298 RUB per 1 USD, 2M 2017 – 59.2188 RUB per 1 USD, 2M 2016 – 76.7560 RUB per 1 USD
[4] Based on the average exchange rate for March 2017 - 58.1091 RUB per 1 USD, March 2016 – 70.5101 RUB per 1 USD, 3M 2017 – 58.8366 RUB per 1 USD, 3M 2016 – 74.6283 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 March 1, 2016.
[6] Based on the average exchange rate for 1Q 2017 - 58.8366 RUB per 1 USD, 1Q 2016 – 74.6283 RUB per 1 USD