Press Release
Krasnodar
October 21, 2016
Magnit Announces Unaudited 9M 2016 Results
Krasnodar (October 21, 2016): Magnit PJSC, one of Russia’s leading retailers (the “Company”; MOEX and LSE: MGNT) announces its unaudited 9M 2016 results prepared in accordance with IFRS[1].
During 9M 2016 the Company added (net) 1,275 stores (544 convenience stores, 9 hypermarkets, 24 “Magnit Family” stores and 698 drogerie stores) and increased its selling space by 16.13% in comparison to 9M 2015 from 4,154.99 thousand sq. m. to 4,825.39 thousand sq. m. The total store base as of September 30, 2016 reached 13,364 stores (10,138 convenience stores, 228 hypermarkets, 179 “Magnit Family” stores and 2,819 drogerie stores).
Revenue increased by 14.44% YoY from 690,442.57 million RUR in 9M 2015 to 790,136.88 million RUR in 9M 2016.
Gross profit increased by 11.29% from 195,375.92 million RUR in 9M 2015 to 217,431.15 million RUR in 9M 2016. Gross margin in 9M 2016 amounted to 27.52%.
EBITDA increased from 75,112.79 million RUR in 9M 2015 to 80,253.85 million RUR in 9M 2016. EBITDA margin in the 9M of 2016 was 10.16%. EBITDA margin in the 3Q of 2016 was 10.67%.
9M 2016 net income stood at 40,923.61 million RUR. Net income margin for 9M 2016 was 5.18%.
According to Rosstat, general inflation in September 2016 stood at 0.2% compared to 0.6% in September 2015, in 9M 2016 it was 4.1% compared to 10.4% in 9M 2015.
Food inflation in September 2016 was -0.1% compared to 0.4% in September 2015, in 9M 2016 it was 2.4% compared to 10.2% in 9M 2015.
3Q and 9M 2016 Key Operating Highlights:
|
3Q 2016 |
3Q 2015 |
Growth Rate |
9M 2016 |
9M 2015 |
Growth Rate |
| Number of opened stores, NET |
476 |
660 |
n/a |
1,275 |
1,677 |
n/a |
| convenience stores |
236 |
356 |
n/a |
544 |
902 |
n/a |
| hypermarkets |
0 |
7 |
n/a |
9 |
18 |
n/a |
| magnit family |
9 |
17 |
n/a |
24 |
30 |
n/a |
| drogerie stores |
231 |
280 |
n/a |
698 |
727 |
n/a |
|
|
|
|
| Total number of stores |
13,364 |
11,388 |
n/a |
13,364 |
11,388 |
n/a |
| convenience stores |
10,138 |
9,246 |
n/a |
10,138 |
9,246 |
n/a |
| hypermarkets |
228 |
208 |
n/a |
228 |
208 |
n/a |
| magnit family |
179 |
127 |
n/a |
179 |
127 |
n/a |
| drogerie stores |
2,819 |
1,807 |
n/a |
2,819 |
1,807 |
n/a |
|
|
|
|
| Selling space, eop. th. sq. m. |
4,825.39 |
4,154.99 |
16.13% |
4,825.39 |
4,154.99 |
16.13% |
| convenience stores |
3,319.80 |
2,997.30 |
10.76% |
3,319.80 |
2,997.30 |
10.76% |
| hypermarkets |
659.37 |
604.96 |
8.99% |
659.37 |
604.96 |
8.99% |
| magnit family |
196.31 |
139.82 |
40.40% |
196.31 |
139.82 |
40.40% |
| drogerie stores |
649.91 |
412.92 |
57.40% |
649.91 |
412.92 |
57.40% |
|
| Selling space growth, th. sq.m. |
148.19 |
226.99 |
n/a |
411.67 |
564.35 |
n/a |
| convenience stores |
83.67 |
131.05 |
n/a |
200.24 |
323.99 |
n/a |
| hypermarkets |
(1.14) |
15.15 |
n/a |
20.23 |
45.87 |
n/a |
| magnit family |
9.26 |
17.09 |
n/a |
26.13 |
30.75 |
n/a |
| drogerie stores |
56.39 |
63.71 |
n/a |
165.07 |
163.75 |
n/a |
|
| Number of customers, mn |
985.87 |
863.42 |
14.18% |
2,850.44 |
2,481.04 |
14.89% |
| convenience stores |
831.52 |
732.07 |
13.58% |
2,410.80 |
2,119.29 |
13.76% |
| hypermarkets |
65.78 |
66.38 |
(0.90)% |
198.05 |
194.29 |
1.94% |
| magnit family |
33.02 |
25.89 |
27.51% |
94.40 |
71.22 |
32.55% |
| drogerie stores |
55.55 |
39.08 |
42.15% |
147.19 |
96.24 |
52.94% |
LFL Results
| Formats |
3Q 2016 - 3Q 20152 |
| # of Stores |
Average Ticket |
Traffic |
Sales |
| Convenience Stores |
8,694 |
(0.14)% |
3.88% |
3.73% |
| Hypermarkets |
204 |
0.67% |
(8.80)% |
(8.20)% |
| Magnit Family |
119 |
0.06% |
(5.65)% |
(5.59)% |
| Drogeries |
1,639 |
7.19% |
(4.00)% |
2.90% |
| Total |
10,656 |
(0.98)% |
2.24% |
1.23% |
| Formats |
9M 2016 - 9M 20152 |
| # of Stores |
Average Ticket |
Traffic |
Sales |
| Convenience Stores |
8,486 |
(0.29)% |
2.88% |
2.59% |
| Hypermarkets |
203 |
(1.44)% |
(8.28)% |
(9.60)% |
| Magnit Family |
119 |
(1.48)% |
(4.70)% |
(6.12)% |
| Cosmetics Stores |
1,606 |
9.34% |
(3.91)% |
5.07% |
| Total |
10,414 |
(1.37)% |
1.48% |
0.09% |
3Q and 9M 2016 Key Financial Results, million RUR
|
3Q 2016 |
3Q 2015 |
Growth Rate |
9M 2016 |
9M 2015 |
Growth Rate |
| Net sales |
268,609.30 |
235,633.94 |
13.99% |
790,136.88 |
690,442.57 |
14.44% |
| convenience stores |
197,689.55 |
173,911.85 |
13.67% |
582,716.99 |
512,345.61 |
13.74% |
| hypermarkets |
38,338.25 |
38,897.03 |
(1.44)% |
117,294.28 |
118,268.16 |
(0.82)% |
| magnit family |
14,255.56 |
10,979.38 |
29.84% |
41,748.97 |
31,316.20 |
33.31% |
| drogerie stores |
16,998.98 |
11,161.91 |
52.29% |
44,980.90 |
26,718.26 |
68.35% |
| wholesale |
1,326.96 |
683.77 |
94.07% |
3,395.74 |
1,794.34 |
89.25% |
| Gross profit |
75,368.16 |
68,315.51 |
10.32% |
217,431.15 |
195,375.92 |
11.29% |
| Gross margin,% |
28.06% |
28.99% |
n/a |
27.52% |
28.30% |
n/a |
| EBITDAR |
38,479.48 |
34,442.20 |
11.72% |
108,441.45 |
96,733.56 |
12.10% |
| EBITDAR margin, % |
14.33% |
14.62% |
n/a |
13.72% |
14.01% |
n/a |
| EBITDA |
28,654.01 |
26,485.13 |
8.19% |
80,253.85 |
75,112.79 |
6.84% |
| EBITDA margin, % |
10.67% |
11.24% |
n/a |
10.16% |
10.88% |
n/a |
| EBIT |
21,830.05 |
21,008.58 |
3.91% |
61,328.52 |
59,602.61 |
2.90% |
| EBIT margin, % |
8.13% |
8.92% |
n/a |
7.76% |
8.63% |
n/a |
| Net income |
14,816.36 |
17,988.39 |
(17.63)% |
40,923.61 |
43,254.05 |
(5.39)% |
| Net income margin, % |
5.52% |
7.63% |
n/a |
5.18% |
6.26% |
n/a |
3Q and 9M 2016 Key Financial Results, US$ million3
|
3Q 2016 |
3Q 2015 |
Growth Rate |
9M 2016 |
9M 2015 |
Growth Rate |
| Net sales |
4,156.46 |
3,741.50 |
11.09% |
11,557.33 |
11,647.59 |
(0.77)% |
| convenience stores |
3,059.05 |
2,761.45 |
10.78% |
8,523.40 |
8,643.14 |
(1.39)% |
| hypermarkets |
593.25 |
617.62 |
(3.95)% |
1,715.66 |
1,995.15 |
(14.01)% |
| magnit family |
220.59 |
174.34 |
26.53% |
610.66 |
528.30 |
15.59% |
| drogerie stores |
263.04 |
177.23 |
48.42% |
657.94 |
450.73 |
45.97% |
| wholesale |
20.53 |
10.86 |
89.04% |
49.67 |
30.27 |
64.09% |
| Gross profit |
1,166.25 |
1,084.75 |
7.51% |
3,180.37 |
3,295.94 |
(3.51)% |
| Gross margin,% |
28.06% |
28.99% |
n/a |
27.52% |
28.30% |
n/a |
| EBITDAR |
595.43 |
546.89 |
8.88% |
1,586.17 |
1,631.87 |
(2.80)% |
| EBITDAR margin, % |
14.33% |
14.62% |
n/a |
13.72% |
14.01% |
n/a |
| EBITDA |
443.39 |
420.54 |
5.43% |
1,173.87 |
1,267.13 |
(7.36)% |
| EBITDA margin, % |
10.67% |
11.24% |
n/a |
10.16% |
10.88% |
n/a |
| EBIT |
337.80 |
333.58 |
1.27% |
897.05 |
1,005.48 |
(10.78)% |
| EBIT margin, % |
8.13% |
8.92% |
n/a |
7.76% |
8.63% |
n/a |
| Net income |
229.27 |
285.63 |
(19.73)% |
598.59 |
729.69 |
(17.97)% |
| Net income margin, % |
5.52% |
7.63% |
n/a |
5.18% |
6.26% |
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
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 September 30, 2016, Magnit operated 33 distribution centers and 13,364 stores (10,138 convenience, 407 hypermarkets and 2,819 drogerie stores) in 2,436 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 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] 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, 2015.
[3] Based on the average exchange rate for 3Q 2016 - 64.6245 RUB per 1 USD, 3Q 2015 – 62.9784 RUB per 1 USD, 9M 2016 - 68.3667 RUB per 1 USD, 9M 2015 – 59.2777 RUB per 1 USD