Russia's Magnit Sees Revenue Up 7.7% In First Half
Russian retailer Magnit has posted a 7.7% increase in revenue in the first half of its financial year, to RUB 822.2 billion (€9.48 billion), with the group opening a net new 780 stores in the period.
The group, which completed the acquisition of Dixy Group last month, reported 4.7% like-for-like sales growth in the period to 30 June, which was entirely driven by increased basket size (+4.7%).
Magnit Sees Profits Rise
Gross profit increased by 7.3% in the half-year period, to RUB 192.6 billion (€2.22 billion), boosted by a 'better promotional margin, lower shrinkage and favourable format mix', the group said.
This was offset by slightly higher supply chain costs and the higher penetration of the group's loyalty programme, Magnit added.
In addition, promotional intensity was slightly higher than the same period last year, due to shopping patterns starting to normalise post-pandemic.
Magnit increased its selling space in the period by 252,000 square metres, opening 549 convenience stores, two supermarkets and 375 drugstores. Some 146 stores were closed during the period.
As part of its store refurbishment programme, Magnit redesigned 243 stores (including 219 convenience stores and 24 supermarkets), meaning that as of the half year, some 74% of its convenience stores, 34% of supermarkets and 59% of drugstores are either new or refurbished.
Since the half-year period concluded, Magnit said that it has commenced the production of ready-to-eat products for its convenience stores in Magnit Family supermarkets, while it has also rented a new distribution centre in the Moscow area to improve the efficiency of its logistics in the region.
In July, Magnit announced a collaboration agreement with Wildberries, the country's largest online operator, relating to order fulfilment.