Russian retailer Magnit has reported 13.5% year-on-year growth in revenue to RUB 1,553.8 billion (€17.8 billion) in its financial year ended 31 December 2020.
The company’s net retail sales increased by 13.3% in this period, to RUB 1,510.1 billion (€17.3 billion), compared to the previous financial year.
This performance included like-for-like sales growth of 7.4%.
The company’s wholesale revenue increased by 22.2% year-on-year to RUB 43.7 billion (€500 million), primarily due to improvements in wholesale operations.
The share of its wholesale segment increased from 2.6% in 2019 to 2.8% in 2020, the retailer added.
Gross profit margin stood at 23.5%, an increase of 74 bps year-on-year on improved commercial terms, lower promo activity combined with better promo coverage and higher promo margin, lower shrinkage and supply chain costs.
However, it was partially offset by the ongoing cost of the retailer’s loyalty programme.
EBITDA for the period amounted to RUB 109.4 billion (€1.3 billion) with a 7.0% margin, reflecting an increase of 97 bps year-on-year driven by strong gross margin dynamics and lower selling, general and administrative expenses.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.