Russia's Magnit Sees Like-For-Like Sales Up In First Quarter
Russian retailer Magnit has posted a 4.1% increase in like-for-like sakes in the first quarter of its financial year, with average basket sizes 14.9% higher than this time last year, the group said.
Like-for-like traffic to its stores was down 9.4% however, continuing the trend seen in recent quarters in which shoppers have visited stores less, but purchased more.
Total revenue for the quarter was up 5.8%, the group said, to RUB 397.9 billion (€4.42 billion), while net retail sales rose 6.3% to RUB 387.9 billion. EBITDA for the period was RUB 27.7 billon (€310 million), with an EBITDA margin of 7.0%.
'Exceptionally Strong' Sales
“The first quarter results were in line with our internal expectations," said Jan Dunning, Magnit president and chief executive.
"In January, February and the first half of March, sales were exceptionally strong across all formats and channels despite trading against a prior year base that included a spike in sales driven by consumer stockpiling during the nationwide lockdown."
During the period, Magnit opened a new 336 new stores, and continued the renovation of its existing store estate, with 73% of the group's convenience stores, 32% of its supermarkets and 57% of its drugstores now either new or refurbished.
"We continue to be guided by our key priorities – improvements in our customer value proposition and operating efficiency, smart returns-driven expansion and store redesign to deliver further profitability gains," said Dunning.
"Development of the wider Magnit eco-system is progressing well with new services available now via Magnit Pay. We have also expanded our e-commerce pilots and are pleased with the first results."
The group said that it is 'on track' to deliver its published plans for the year, adding that it continues to see a 'gradual improvement in profitability', despite the volatile macro and consumer environment.