Source - PRN

Press Release

Krasnodar

October 11, 2016

Magnit Announces 13.68% Retail Sales Growth in Rubles for September 2016[1]

Krasnodar, Russia (October 11, 2016): Magnit PJSC, one of Russia’s leading retailers (the “Company”; MOEX and LSE: MGNT), announces 13.68% retail sales growth in rubles for September 2016.

During September 2016 the Company opened (net) 123 stores. The total store base reached 13,364 stores (10,138 convenience stores, 228 hypermarkets, 179 “Magnit Family” stores and 2,819 drogerie stores).

Preliminary consolidated unaudited net retail revenue (excl. VAT) in 9M 2016 increased by 14.24% in ruble terms (compared to 9M 2015) and stood at 786,741.14 million rubles.

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.

September 2016 Key Operating and Financial Highlights:

September 2016 September 2015 Growth Rate
Number of opened stores, NET 123 218 n/a
convenience stores 66 119 n/a
hypermarkets (3) 1 n/a
magnit family 3 5 n/a
drogerie stores 57 93 n/a
Total number of stores 13,364 11,388 n/a
convenience stores 10,138 9,246 n/a
hypermarkets 228 208 n/a
magnit family 179 127 n/a
drogerie stores 2,819 1,807 n/a
Selling space, eop, th. sq. m. 4,825.39 4,154.99 16.13%
convenience stores 3,319.80 2,997.30 10.76%
hypermarkets 659.37 604.96 8.99%
magnit family 196.31 139.82 40.40%
drogerie stores 649.91 412.92 57.40%
Selling space growth, th. sq.m. 33.59 73.90 n/a
convenience stores 22.65 46.01 n/a
hypermarkets (6.09) 1.84 n/a
magnit family 3.04 4.91 n/a
drogerie stores 13.99 21.15 n/a
Number of customers, million 313.03 279.58 11.96%
convenience stores 263.73 237.62 10.99%
hypermarkets 20.54 20.71 (0.84)%
magnit family 10.41 8.47 22.87%
drogerie stores 18.35 12.78 43.55%
Net retail sales, million RUR 84,234.81 74,098.54 13.68%
convenience stores 62,339.79 55,151.39 13.03%
hypermarkets 11,846.37 11,762.88 0.71%
magnit family 4,462.87 3,510.84 27.12%
drogerie stores 5,585.78 3,673.43 52.06%
Net retail sales, million US$[2] 1,303.92 1,109.68 17.50%
convenience stores 964.99 825.93 16.84%
hypermarkets 183.38 176.16 4.10%
magnit family 69.08 52.58 31.39%
drogerie stores 86.47 55.01 57.18%

3Q and 9M 2016 Key Operating and Financial 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, million 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%
Net retail sales, million RUR 267,282.34 234,950.17 13.76% 786,741.14 688,648.23 14.24%
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%
Net retail sales, million US$[3] 4,135.93 3,730.65 10.86% 11,507.66 11,617.32 (0.94)%
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%

LFL results

Formats 3Q 2016 - 3Q 2015[4]
# 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 2015[4]
# 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)%
Drogeries 1,606 9.34% (3.91)% 5.07%
Total 10,414 (1.37)% 1.48% 0.09%

For further information, please contact:

Timothy Post Head of Investor Relations
Email: [email protected]
Office: +7-861-277-4554 x 17600
Direct Line: +7-861-277-4562
Investor Relations Office [email protected]
Direct Line: +7-861-277-4562
Website: ir.magnit.com/
Media Inquiries Media Relations Department
[email protected]

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] According to management accounts

[2] Based on the average exchange rate for September 2016 – 64.6012 RUB per 1 USD, September 2015 – 66.7749  RUB per 1 USD

[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

[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, 2015.