Magnit Continues Q1 Expansion Despite LFL Decline
Russian retailer Magnit has recorded a sales increase of 8.08% to RUB288.56 billion in its unaudited results for the first quarter of 2018, although like-for-like numbers show declines.
During the period, the retailer expanded its network by adding 275 stores, reaching a total of 16,625 stores, while its selling space increased 13.24% to 5.83 million square metres.
It now operates 12,283 convenience stores, 242 hypermarkets, 210 'Magnit Family' outlets and 3,890 drogerie stores.
Sales performed strongly at its drogerie stores (+13.10%), Magnit Family (+6.04%) and its convenience stores (+6.04%), while declining slightly at its hypermarkets (-2.70%).
Meanwhile, Magnit’s wholesale sales grew by 50.69% to RUB3.63 million.
However, like-for-like figures saw decreases on almost all fronts, with the average basket size down marginally (0.01%), traffic down 3.64% and sales down 3.65%.
The retailer’s drogerie format was the only one to experience like-for-like growth, with a 4.53% increase of average basket size and a 0.1% sales increase, albeit with a 4.24% decrease in traffic.
Gross profit increased 3% to RUB71.90 billion, while gross margin was 24.92%.
The retailer’s EBITDA was down 2.36% to RUB20.50 billion, while its EBITDA margin was 7.10%.
Net income during the period was also down 1.83% to RUB7.41 billion, while its net income margin was 2.57%.
Last February, Magnit's CEO Sergey Galitskiy confirmed that he intended to step down as director general of the business and as a member of its board of directors.
He sold 29.1% of his shares in the company to a subsidiary of VTB Bank in a deal valued at RUB 138 billion (€1.95 bullion).
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: European Supermarket Magazine.