Russian retailer Magnit saw its net income soar by 159.21 per cent in the first half of the year, to RUR10,413.57 million (US$ 339.88 million). Group revenues were up 32.57 per cent, to RUR207,602.53 million. In US dollars, revenue growth was 23.85 per cent, hitting $6,775.76 million.
The performance can be attributed in part, to an increase in selling space. In the first six months of 2012, the group opened 413 stores, including 262 convenience stores, 8 hypermarkets and 2 'Magnit Family' stores, giving a total of 5,722 stores, including 351 cosmetics stores. Magnit employs 140,000 people and carries about 640 private label products.
Competitor X5 saw a sharp decline in net profits in the first half of the year, falling 20.6 per cent to US$135.2 million, with the group reporting net sales growth of 6.9 per cent in Russian roubles, the group's operational currency, but a decrease of 0.1 per cent in US dollars to $7,859 million. Sales in the second quarter of the year dipped 0.8 per cent, with a drop of 6.2 per cent in net profits in the quarter.
The X5 Retail Group is Russia's largest retailer in terms of revenue. With 3,298 company-operated stores and 399 franchises, its operations include 2,783 soft discounter stores, 341 supermarkets, 77 hypermarkets and 97 convenience stores. (24 Aug)
© 2012 - ESM: European Supermarket
