OJSC MAGNIT: Correction : September/9M 2013 Results

The publication date of 9M 2013 financial results in the CEO's quote has
been corrected from October 25, 2013 to October 28, 2013. 
Press-release 
Krasnodar 
October 9, 2013 
OJSC "Magnit" Announces 27.94% Retail Sales Growth in Rubles for
September 2013[1] 
Krasnodar, October 9, 2013: OJSC "Magnit", Russia's largest
retailer (the "Company"; MICEX and LSE: MGNT) announces 27.94% retail sales
growth in rubles for September 2013. 
During September 2013 the Company opened (net) 91 stores. The total
store base reached 7,646 stores (6,783 convenience stores, 148 hypermarkets,
30 "Magnit Family" stores and 685 cosmetics stores). 
Preliminary consolidated unaudited net retail revenue (excl. VAT)
in 9M 2013 increased by 30.60% in ruble terms (compared to 9M 2012) and stood
at 417,061.48 million rubles. 
Sergey Galitskiy, the Company's CEO, provided the following
comments on the 3Q 2013 results: 
"Witnessing tougher competition as well as stronger cannibalization
effect of our stores in July - September this year, we have focused on
operating efficiency (results will be published on October 28, 2013) and paid
less attention to traffic. In the 4th quarter we will be more aggressive in
price while we confirm the earlier given guidance for this year on both sales
growth and profitability". 
September 2013 Key Operating and Financial Highlights: 
                                                    September 2013        
September 2012              Growth Rate
Number of opened stores, NET                                        91           


         145                      n/a
                              convenience stores                    95          
          98                      n/a
                                    hypermarkets                     1          
           0                      n/a
                                   magnit family                     0          
           3                      n/a
                                cosmetics stores                   (5)          


      44                      n/a
Total number of stores                                           7,646           


       6,119                      n/a
                              convenience stores                 6,783          
       5,523                      n/a
                                    hypermarkets                   148          
         105                      n/a
                                   magnit family                    30          
          11                      n/a
                                cosmetics stores                   685          


     480                      n/a
Selling space growth, thousand sq.m.                             26.47           


       47.81                      n/a
                              convenience stores                 26.57          
       32.75                      n/a
                                    hypermarkets                  1.51          
           0                      n/a
                                   magnit family                     0          
        3.75                      n/a
                                cosmetics stores                (1.62)          


   11.32                      n/a
Selling space, eop, thousand sq. m.                           2,841.39           


    2,260.88                   25.68%
                              convenience stores              2,195.74          
    1,813.42                   21.08%
                                    hypermarkets                448.45          
      324.68                   38.12%
                                   magnit family                 35.44          
       13.63                      n/a
                                cosmetics stores                161.77          


  109.14                      n/a
Number of customers, million                                    199.69           


      168.81                   18.30%
                              convenience stores                176.82          
      154.24                   14.64%
                                    hypermarkets                 15.92          
       11.53                   38.01%
                                   magnit family                  2.60          
        0.86                      n/a
                                cosmetics stores                  4.36          


    2.17                      n/a
Net retail sales, million RUR                                46,221.74           
36,129.07                   27.94% 
                          convenience stores             35,739.81           
29,206.43                   22.37% 


                                    hypermarkets              8,510.24          
    6,103.92                   39.42%
                                   magnit family                905.51          
      293.36                      n/a
                                cosmetics stores              1,066.18          


  525.35                      n/a
Net retail sales, million US$[2]                              1,416.35           


    1,145.84                   23.61%
                              convenience stores              1,095.16          
      926.29                   18.23%
                                    hypermarkets                260.78          
      193.59                   34.71%
                                   magnit family                 27.75          
        9.30                      n/a
                                cosmetics stores                 32.67          
       16.66                      n/a


3Q and 9M 2013 Key Operating and Financial Highlights:


                                    3Q 2013       3Q 2012     Growth Rate     
 9М 2013     9М 2012      Growth Rate
Number of opened stores, NET              230           397             n/a      


     762         810              n/a
             convenience stores           231           255             n/a     
     737         517              n/a
                   hypermarkets            10             7             n/a     
      22          15              n/a
                  magnit family             4             6             n/a     
      10           8              n/a
               cosmetics stores          (15)           129             n/a     


 (7)         270              n/a
Total number of stores                  7,646         6,119             n/a      
7,646       6,119              n/a 
         convenience stores         6,783         5,523             n/a      
6,783       5,523              n/a 


                   hypermarkets           148           105             n/a     
     148         105              n/a
                  magnit family            30            11             n/a     
      30          11              n/a
               cosmetics stores           685           480             n/a     


 685         480              n/a
Selling space growth, th. sq.m.          93.30        141.41             n/a     
292.14      290.77             n/a 
          convenience stores         66.36         83.97             n/a     
218.28      175.65             n/a 


                    hypermarkets         25.36         21.57             n/a    
    60.83       46.24             n/a
                   magnit family          4.25          7.43             n/a    
    11.08        9.83             n/a
                cosmetics stores        (2.67)         28.44             n/a    


 1.95       59.05             n/a
Selling space, eop, th. sq. m.        2,841.39      2,260.88          25.68%    
 2,841.39    2,260.88          25.68% 
          convenience stores      2,195.74      1,813.42          21.08%    
 2,195.74    1,813.42          21.08% 
                hypermarkets        448.45        324.68          38.12%     
448.45      324.68          38.12% 


                   magnit family         35.44         13.63             n/a    
    35.44       13.63             n/a


            cosmetics stores        161.77        109.14             n/a     
161.77      109.14             n/a
Number of customers, million            625.49        518.91          20.54%    
 1,808.12    1,483.99          21.84% 
          convenience stores        554.95        474.63          16.92%    
 1,614.69    1,366.55          18.16% 
                hypermarkets         49.68         35.97          38.11%     
139.61       98.22          42.13% 


                   magnit family          7.95          2.12             n/a    
    20.03        4.53             n/a
                cosmetics stores         12.92          6.19             n/a    


33.80       14.69             n/a
Net retail sales, million RUR       144,260.91    111,864.88          28.96%   
417,061.48  319,332.35          30.60% 
          convenience stores    111,743.27     90,287.18          23.76%   
327,004.60  261,755.27          24.93% 
                hypermarkets     26,636.85     19,336.32          37.76%    
74,994.86   52,537.48          42.75% 
               magnit family      2,779.21        717.09             n/a    
 6,982.67    1,514.72             n/a 
            cosmetics stores      3,101.58      1,524.29             n/a    
 8,079.35    3,524.88             n/a
Net retail sales, million US$[3]      4,398.51      3,494.99          25.85%    
13,191.05   10,268.45          28.46% 
          convenience stores      3,407.05      2,820.84          20.78%    
10,342.68    8,417.00          22.88% 
                hypermarkets        812.16        604.12          34.44%    
 2,371.98    1,689.39          40.40% 
               magnit family         84.74         22.40             n/a     
220.85       48.71             n/a 
            cosmetics stores         94.57         47.62             n/a     
255.54      113.35             n/a
LFL Results 
LFL growth 3Q 2013 - 3Q 2012[4]      Convenience stores  Hypermarkets   Magnit 
Family   Cosmetics stores     Total
Average ticket (excl. VAT), RUR            6.31%            1.12%           
3.97%           (1.53)%          5.84%
Traffic                                   (1.83)%           2.33%           
2.79%            15.98%         (1.44)%
Revenue, RUR                               4.36%            3.48%           
6.87%            14.20%          4.32%
LFL growth 9М 2013 - 9М 2012[5]    Convenience stores  Hypermarkets   Magnit 
Family   Cosmetics stores     Total
Average ticket (excl. VAT), RUR            5.82%            2.40%           
5.27%            2.06%           5.73%
Traffic                                   (1.33)%           3.25%           
9.02%            6.35%          (1.03)%
Revenue, RUR                               4.41%            5.72%           
14.76%           8.54%           4.64% 
Please note that food inflation in 9M 2013 was 4.5% compared to
5.4% in 9M 2012, and in 3Q 2013 it was -0.7% vs. +0.7% in 3Q 2012. 
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 September 30, 2013, Magnit operates 19 distribution centers
and over 7,600 stores (6,783 convenience, 178 hypermarkets, and 685 cosmetics)
in more than 1,760 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] According to management accounts 
[2] Based on the average exchange rate for September 2013 of
32.6344 RUB per 1 USD, September 2012 - 31.5307 RUB per 1 USD 
[3] Based on the average exchange rate for 3Q 2013 - 32.7977 RUB
per 1 USD, 3Q 2012 - 32.0072 RUB per 1 USD, 9M 2013 - 31.6170 RUB per 1 USD,
9M 2012 - 31.0984 RUB per 1 USD 
[4] Based on 4,573 convenience stores and 170 cosmetics stores
which were opened by January 1, 2012, and 72 hypermarkets and 3 Magnit Family
which were opened by October 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. 
[5] Based on 3,646 convenience stores and 19 cosmetics stores which
were opened by July 1, 2011, and 60 hypermarkets and 1 Magnit Family 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 
END 
-0- Oct/09/2013 06:46 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.