OJSC MAGNIT: 1H 2013 IFRS Financial Results (Reviewed by Auditors)

OJSC MAGNIT: 1H 2013 IFRS Financial Results (Reviewed by Auditors)
Press-release 
Krasnodar 
August 29, 2013 
OJSC "Magnit" Announces Reviewed 1H 2013 Results 
Krasnodar, August 29, 2013: OJSC "Magnit", Russia's largest
retailer (the "Company"; MICEX and LSE: MGNT) announces its reviewed 1H 2013
results prepared in accordance with IFRS. 
During 1H 2013 the Company added (net) 532 stores (506 convenience
stores, 12 hypermarkets, 6 "Magnit Family" stores and 8 cosmetics stores) and
increased its selling space by 29.66% in comparison to 1H 2012 from 2,119.53
thousand sq. m. to 2,748.09 thousand sq. m. The total store base as of June
30, 2013 reached 7,416 stores (6,552 convenience stores, 138 hypermarkets, 26
"Magnit Family" stores and 700 cosmetics stores). 
Revenue in rubles increased by 31.42% YoY from 207,602.53 million
RUR in 1H 2012 to 272,838.04 million RUR in 1H 2013. The top line growth was
due to an increase in selling space as well as to a 5.29% increase of
like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to
29.82%: from US$ 6,775.76 million to US$ 8,796.43 million.[1] 
Gross margin grew from 25.61% in 1H 2012 to 27.26% in 1H 2013.
Gross profit in rubles increased by 39.87% from 53,175.21 million RUR (US$
1,735.54 million) to 74,377.21 million RUR (US$ 2,397.96 million). 
EBITDA increased by 34.34% from 20,547.29 million RUR (US$ 670.63
million) in 1H 2012 to 27,603.07 million RUR (US$ 889.94 million) in 1H 2013.
EBITDA margin in 1H 2013 amounted to 10.12%. Net debt / EBITDA ration (in
ruble terms) as of 30 June 2013 amounted to 0.96. 
1H 2013 net income increased by 39.67% and amounted to 14,544.22
million RUR (US$ 468.91 million) vs. 10,413.57 million RUR (US$ 339.88
million) in 1H 2012. 
Key figures presented in this press-release are immaterially higher
compared to numbers under management accounts announced by the Company on July
23, 2013. Thus, according to the reviewed results for the 1H 2013 EBITDA and
Net income margins are higher by 1 bp. 
2Q and 1H 2013 Key Operating Highlights: 
                                2Q 2013       2Q 2012      Growth Rate     
1H 2013      1H 2012     Growth Rate
Number of opened stores, NET               341           256             n/a     


      532         413             n/a
              convenience stores           343           164             n/a    
      506         262             n/a
                    hypermarkets             6             7             n/a    
       12           8             n/a
                   magnit family             5             0             n/a    
        6           2             n/a
                cosmetics stores          (13)            85             n/a    


    8         141             n/a 
Total number of stores                   7,416         5,722             n/a     


    7,416       5,722             n/a
              convenience stores         6,552         5,268             n/a    
    6,552       5,268             n/a
                    hypermarkets           138            98             n/a    
      138          98             n/a
                   magnit family            26             5             n/a    
       26           5             n/a
                cosmetics stores           700           351             n/a    


  700         351             n/a 
Selling space growth, th. sq.m.         118.21         94.63             n/a     
198.84      149.37             n/a 
          convenience stores         99.18         56.03             n/a     
151.92       91.69             n/a 


                    hypermarkets         15.62         21.02             n/a    
    35.47       24.67             n/a
                   magnit family          5.38             0             n/a    
     6.83        2.40             n/a
                cosmetics stores        (1.97)         17.58             n/a    


 4.61       30.61             n/a 
Selling space, eop, th. sq. m.        2,748.09      2,119.53          29.66%    
 2,748.09    2,119.53          29.66% 
          convenience stores      2,129.38      1,729.52          23.12%    
 2,129.38    1,729.52          23.12% 
                hypermarkets        423.09        303.12          39.58%     
423.09      303.12          39.58% 


                   magnit family         31.19          6.20             n/a    
    31.19        6.20             n/a


            cosmetics stores        164.44         80.70             n/a     
164.44       80.70             n/a 
Number of customers, million            619.62        503.03          23.18%    
 1,182.63      965.08          22.54% 
          convenience stores        554.28        464.10          19.43%    
 1,059.74      891.92          18.82% 


                    hypermarkets         47.80         32.86          45.47%    
    89.93       62.25          44.46%
                   magnit family          6.50          1.54             n/a    
    12.09        2.41             n/a
                cosmetics stores         11.03          4.54             n/a    


20.88        8.50             n/a
LFL Results 
LFL growth 2Q 2013 - 2Q 2012[2]                  Convenience stores         
Hypermarkets                Total
Average ticket (excluding VAT), RUR                     6.16%                   
2.80%                   6.07%
Traffic                                                (0.07)%                  
4.55%                   0.22%
Revenue, RUR                                            6.09%                   
7.48%                   6.30%
LFL growth 6M 2013 to 6M 2012[3]                 Convenience stores         
Hypermarkets                Total
Average ticket (excluding VAT), RUR                     5.67%                   
3.00%                   5.70%
Traffic                                                (0.67)%                  
3.97%                  (0.39)%
Revenue, RUR                                            4.96%                   
7.09%                   5.29% 
2Q[4] and 1H 2013 Key Financial Results[5] 
                               2Q 2013        2Q 2012       Growth Rate     
 1H 2013      1H 2012    Growth Rate
Net sales, mn RUR                   141,598.12    106,984.57          32.35%   
272,838.04   207,602.53         31.42% 
   convenience stores           111,116.10     87,809.30          26.54%   
215,261.33   171,468.09         25.54% 
         hypermarkets            25,687.12     17,520.89          46.61%    
48,358.02    33,201.16         45.65% 
        magnit family             2,267.66        496.07             n/a    
 4,203.45       797.63            n/a 
     cosmetics stores             2,511.80      1,047.79             n/a    
 4,977.77     2,000.59            n/a 
            wholesale                15.43        110.52             n/a     
37.47       135.05            n/a
Net sales, mn US$                     4,479.11      3,449.57          29.85%    
 8,796.43     6,775.76         29.82% 
   convenience stores             3,514.89      2,831.29          24.14%    
 6,940,13     5,596.40         24.01% 
         hypermarkets               812.55        564.94          43.83%    
 1,559.09     1,083.62         43.88% 
        magnit family                71.73         15.99             n/a     
135.52        26.03            n/a 
     cosmetics stores                79.45         33.78             n/a     
160.49        65.30            n/a 
            wholesale                 0.49          3.56             n/a     
 1.21         4.41            n/a
Gross profit, mn RUR                 39,306.86     27,737.00          41.71%    
74,377.21    53,175.21         39.87%
Gross profit, mn US$                  1,243.38        894.34          39.03%    
 2,397.96     1,735.54         38.17%
Gross margin, %                         27.76%        25.93%             n/a     
27.26%       25.61%            n/a
EBITDAR, mn RUR                      18,984.44     13,271.20          43.05%    
34,526.07    25,208.54         36.96%
EBITDAR, mn US$                         600.53        427.91          40.34%    
 1,113.14       822.76         35.29%
EBITDAR margin, %                       13.41%        12.40%             n/a     
12.65%       12.14%            n/a
EBITDA, mn RUR                       15,388.98     10,836.81          42.01%    
27,603.07    20,547.29         34.34%
EBITDA, mn US$                          486.79        349.42          39.32%     
889.94       670.63         32.70%
EBITDA margin, %                        10.87%        10.13%             n/a     
10.12%        9.90%            n/a
EBIT, mn RUR                         11,880.18      8,148.05          45.80%    
20,850.02    15,282.07         36.43%
EBIT, mn US$                            375.80        262.72          43.04%     
672.21       498.78         34.77%
EBIT margin, %                           8.39%         7.62%             n/a     
7.64%        7.36%            n/a
Net profit, mn RUR                    8,388.07      5,641.13          48.69%    
14,544.22    10,413.57         39.67%
Net profit, mn US$                      265.34        181.89          45.88%     
468.91       339.88         37.96%
Net profit margin, %                     5.92%         5.27%             n/a     
5.33%        5.02%            n/a 
Note: net revenue in US$ terms is calculated using the daily exchange rate. 
For further information, please contact: 
Timothy Post                                                Director, Investor 
Relations 
                                                        Email: 
post@gw.tander.ru 
                                                        Office: +7-861-277-4554 x7600 
                                                        Mobile: +7-961-511-7678 
                                                        Direct Line: +7-861-277-4562 
Dina Svishcheva                                             Deputy Director, 
Investor Relations 
                                                        Email: 
Chistyak@gw.tander.ru 
                                                        Office: +7-861-277-45-54 x5101 
                                                        Mobile: +7-961-511-0202 
                                                        Direct Line: +7-861-277-4562 
Company description: 
Magnit is Russia's largest retailer. Founded in 1994 by Sergey
Galitskiy, the company is headquartered in the southern Russian city of
Krasnodar. As of June 30, 2013, Magnit operates 18 distribution centers and
over 7,000 stores (6,552 convenience, 164 hypermarkets, and 700 cosmetics) in
more than 1,700 cities and towns throughout 7 federal regions of the Russian
Federation. 
In accordance with the reviewed IFRS consolidated financial
statements for 1H 2013, Magnit had revenues of $8,796 million USD and an
EBITDA of $890 million USD. Magnit's local shares are traded on the Moscow
Stock Exchange (MICEX: MGNT) and its GDRs on the London Stock Exchange (LSE:
MGNT) and it has a credit rating from Standard & Poor's of BB. Measured by
market capitalization, Magnit is now Europe's 2nd largest retailer. 
--------------------------------- 
[1] Based on the average exchange rate for 1H 2013 - 31.0169 RUR
per 1 US$, 1H 2012 - 30.6390 RUR per 1 US$ 
[2] Based on 4,236 convenience stores which were opened by October
1, 2011, and 65 hypermarkets which were opened by August 1, 2011, i.e. based
on the result of the convenience stores that had been operating for not less
than six months and hypermarkets that had been operating for not less than
eight months and have achieved a mature level of sales 
[3] Based on 3,903 convenience stores which were opened by July 1,
2011, and 60 hypermarkets which were opened by May 1, 2011, i.e. based on the
result of the convenience stores that had been operating for not less than six
months and hypermarkets that had been operating for not less than eight months
and have achieved a mature level of sales 
[4] Management accounts 
[5] Please follow the link to view 1H 2013 financial report
http://magnit-info.ru/en/investors/finance/ 
END 
-0- Aug/29/2013 06:00 GMT
 
 
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