Russia's Magnit Sees Marginal Increase In Like-For-Like Sales In Full Year 2019
Russian retailer Magnit has posted a 0.4% increase in like-for-like sales in full-year 2019, with net retail sales for the period coming in at RUB 1,333 billion (€16.1 billion).
The retailer said that its performance was largely driven by a combination of 12.7% selling space growth.
Wholesale revenue at the business was up 77.4% to RUB 35.8 billion (€430 million), which was driven largely by distribution of pharmaceutical products.
The group said that its supply chain costs remained flat year-on-year, while shrinkage increased – however improvements in this area were made due to 'renegotiation of quality standards with suppliers' the retailer said, as well as changes to the delivery schedule.
During 2019, the company saw a number of one-off costs, it added, including an accident at its Voronezh distribution centre.
As a result, net profits for the year decreased by 49% to RUB 17.1 billion (€210 million), with net profit margin decreasing by 146 basis points to 1.2%.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.