MAGNIT PJSC (MGNT)
MAGNIT PJSC: Unaudited 9M 2017 Financial Results

20-Oct-2017 / 09:00 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

Press Release

Krasnodar

October 20,2017

 

PJSC "Magnit" Announces Unaudited9M 2017 Results

 

Krasnodar, Russia (October 20, 2017): Magnit PJSC, one of Russia's leading retailers (MOEX and LSE: MGNT)announces its unaudited9M 2017 results prepared in accordance with IFRS[1].

 

During 9M2017 Magnit added (net) 1,638 stores. The total store base as of September 30, 2017 reached 15,697 stores (11,743 convenience stores, 236 hypermarkets, 196 "Magnit Family" stores and 3,522drogerie stores).Selling space increased by 15.28% in comparison with 9M 2016 from 4.83 million sq. m. to 5.56 million sq. m.

 

Revenue increased by 6.4% from 790billion RUR in 9M 2016 to 841billion RUR in 9M 2017.

 

Gross Profit increased from 217 billion RUR in 9M 2016 to 228 billion RUR in 9M 2017. Gross Margin in 9M 2017 was 27.1%.

 

EBITDA in 9M 2017 was 69 billion RUR. EBITDA margin in the 9M of 2017 was 8.3%.

 

Net Income in 9M 2017was28 billion RUR. Net Income Margin in 9M 2017 was 3.3%.

 

According to Rosstat, CPI for the last 12M (October 2016 - September 2017) was 3.0% compared to 6.4% for the same period in the previous year.

 

According to Rosstat, food inflation for the last 12M (October 2016 - September 2017) was 2.0% Y-o-Y vs 5.9% forthe same period in the previous year.

 

9M 2017 presentation, which contains additional financial, operational and other data regarding 1H 2017 results, will be published at http://ir.magnit.com/en/shareholder-center/investor-presentation/

 


3Q 2017 Monthly Operating Highlights:

 

 

July

Y-o-Y, %

August

Y-o-Y, %

September

Y-o-Y, %

New Store Openings (NET)

227

n/a

277

n/a

349

n/a

Convenience stores

165

n/a

196

n/a

268

n/a

Hypermarkets

(5)

n/a

0

n/a

1

n/a

Magnit Family

3

n/a

2

n/a

1

n/a

Drogerie Stores

64

n/a

79

n/a

79

n/a

 

 

 

 

 

 

 

 

 

Number of Stores (EOP)

15,071

n/a

15,348

n/a

15,697

n/a

Convenience stores

11,279

n/a

11,475

n/a

11,743

n/a

Hypermarkets

235

n/a

235

n/a

236

n/a

Magnit Family

193

n/a

195

n/a

196

n/a

Drogerie Stores

3,364

n/a

3,443

n/a

3,522

n/a

 

 

 

 

 

 

 

 

 

New Selling Space, th. sq. m.

58.14

n/a

83.21

n/a

101.53

n/a

Convenience stores

50.17

n/a

59.20

n/a

80.40

n/a

Hypermarkets

(9.44)

n/a

2.64

n/a

2.09

n/a

Magnit Family

3.35

n/a

2.52

n/a

1.01

n/a

Drogerie Stores

14.06

n/a

18.85

n/a

18.02

n/a

 

 

 

 

 

 

 

 

 

Total Selling Space (EOP), th. sq. m.

5,377.74

13.88%

5,460.95

13.96%

5,562.48

15.28%

Convenience stores

3,701.72

13.61%

3,760.92

14.07%

3,841.32

15.71%

Hypermarkets

681.63

3.00%

684.26

2.83%

686.35

4.09%

Magnit Family

212.26

10.98%

214.79

11.13%

215.80

9.93%

Drogerie Stores

782.13

28.01%

800.99

25.96%

819.01

26.02%

 

 

 

 

 

 

 

 

 

Number of Customers, million

351.20

4.56%

356.75

5.88%

336.40

7.47%

Convenience stores

296.52

4.50%

301.30

6.07%

284.28

7.79%

Hypermarkets

21.45

(5.70%)

21.24

(5.59%)

19.98

(2.73%)

Magnit Family

11.67

3.01%

11.71

3.81%

10.90

4.71%

Drogerie Stores

21.57

19.32%

22.50

17.65%

21.25

15.78%

 

 

 

 

 

 

 

 

 

Retail Sales[2], million RUR

97,700.86

5.15%

95,669.65

6.14%

89,307.47

6.02%

Convenience stores

73,336.38

6.56%

71,671.52

7.73%

66,968.76

7.43%

Hypermarkets

12,585.12

(7.11%)

12,071.40

(6.74%)

11,188.27

(5.56%)

Magnit Family

5,183.61

3.85%

5,029.88

4.76%

4,647.47

4.14%

Drogerie Stores

6,595.75

18.73%

6,896.86

17.73%

6,502.97

16.42%

 

 

 

 

 

 

 

 

 

Retail Sales2, million USD[3]

1,637.33

13.38%

1,603.86

15.54%

1,547.92

18.71%

Convenience stores

1,229.02

14.90%

1,201.54

17.27%

1,160.73

20.28%

Hypermarkets

210.91

0.17%

202.37

1.51%

193.92

5.75%

Magnit Family

86.87

11.98%

84.32

14.04%

80.55

16.60%

Drogerie Stores

110.54

28.03%

115.62

28.15%

112.71

30.36%

                     

 


3Q and 9M 2017 Operating Highlights:

 

 

3Q 2017

3Q 2016

Y-o-Y, %

9M 2017

9M 2016

Y-o-Y, %

New Store Openings (NET)

853

476

n/a

1,638

1,275

n/a

Convenience stores

629

236

n/a

1,222

544

n/a

Hypermarkets

(4)

0

n/a

(1)

9

n/a

Magnit Family

6

9

n/a

2

24

n/a

Drogerie Stores

222

231

n/a

415

698

n/a

 

 

 

 

 

 

 

 

 

Number of Stores (EOP)

15,697

13,364

n/a

15,697

13,364

n/a

Convenience stores

11,743

10,138

n/a

11,743

10,138

n/a

Hypermarkets

236

228

n/a

236

228

n/a

Magnit Family

196

179

n/a

196

179

n/a

Drogerie Stores

3,522

2,819

n/a

3,522

2,819

n/a

 

 

 

 

 

 

 

 

 

New Selling Space, th. sq. m.

242.87

148.19

n/a

494.80

411.67

n/a

Convenience stores

189.77

83.67

n/a

388.92

200.24

n/a

Hypermarkets

(4.71)

(1.14)

n/a

2.68

20.23

n/a

Magnit Family

6.88

9.26

n/a

3.04

26.13

n/a

Drogerie Stores

50.93

56.39

n/a

100.17

165.07

n/a

 

 

 

 

 

 

 

 

 

Total Selling Space (EOP), th. sq. m.

5,562.48

4,825.39

15.28%

5,562.48

4,825.39

15.28%

Convenience stores

3,841.32

3,319.80

15.71%

3,841.32

3,319.80

15.71%

Hypermarkets

686.35

659.37

4.09%

686.35

659.37

4.09%

Magnit Family

215.80

196.31

9.93%

215.80

196.31

9.93%

Drogerie Stores

819.01

649.91

26.02%

819.01

649.91

26.02%

 

 

 

 

 

 

 

 

 

Number of Customers, million

1,044.36

985.87

5.93%

2,988.50

2,850.44

4.84%

Convenience stores

882.10

831.52

6.08%

2,517.88

2,410.80

4.44%

Hypermarkets

62.66

65.78

(4.74%)

185.28

198.05

(6.45%)

Magnit Family

34.28

33.02

3.82%

99.16

94.40

5.04%

Drogerie Stores

65.32

55.55

17.58%

186.18

147.19

26.48%

                     

 


LFL Results

 

Formats

3Q 2017 - 3Q 2016[4]

# of Stores

Average Ticket

Traffic

Sales

Convenience Stores

8,859

1.22%

(2.09)%

(0.90)%

Hypermarkets

221

(2.42)%

(6.76)%

(9.01)%

Magnit Family

159

(0.75)%

(5.69)%

(6.39)%

Drogerie

2,588

0.89%

(2.04)%

(1.17)%

Total

11,827

0.06%

(2.56)%

(2.50)%

 

Formats

9M 2017 - 9M 20164

# of Stores

Average Ticket

Traffic

Sales

Convenience Stores

7,920

2.34%

(2.86)%

(0.59)%

Hypermarkets

221

(1.96)%

(9.65)%

(11.42)%

Magnit Family

158

(1.27)%

(7.97)%

(9.14)%

Drogerie

2,515

0.81%

0.27%

1.08%

Total

10,814

0.51%

(3.46)%

(2.97)%

 

 


3Q[5] and 9M20175 Key Financial Results, million RUR

 

 

3Q 2017

3Q 2016

Growth Rate

9M 2017

9M 2016

Growth Rate

Net Sales

285,960.60

268,609.30

6.46%

840,985.43

790,136.88

6.44%

Convenience stores

211,976.66

197,689.55

7.23%

623,793.47

582,716.99

7.05%

Hypermarkets

35,844.78

38,338.25

(6.50)%

107,582.05

117,294.28

(8.28)%

Magnit Family

14,860.96

14,255.56

4.25%

43,588.10

41,748.97

4.41%

Drogerie Stores

19,995.58

16,998.98

17.63%

56,955.61

44,980.90

26.62%

Wholesale

3,282.61

1,326.96

147.38%

9,066.21

3,395.74

166.99%

Gross Profit

75,325.99

75,368.16

(0.06%)

227,872.48

217,431.15

4.80%

GrossMargin, %

26.34%

28.06%

n/a

27.10%

27.52%

n/a

EBITDAR

32,586.94

38,479.48

(15.31%)

103,103.93

108,441.45

(4.92%)

EBITDARMargin, %

11.40%

14.33%

n/a

12.26%

13.72%

n/a

EBITDA

20,660.87

28,654.01

(27.90%)

69,450.80

80,253.85

(13.46%)

EBITDA Margin, %

7.23%

10.67%

n/a

8.26%

10.16%

n/a

EBIT

12,212.80

21,830.05

(44.06%)

44,555.12

61,328.52

(27.35%)

EBIT Margin, %

4.27%

8.13%

n/a

5.30%

7.76%

n/a

Net Income

6,923.15

14,816.36

(53.27%)

27,671.59

40,923.61

(32.38%)

Net Income Margin, %

2.42%

5.52%

n/a

3.29%

5.18%

n/a

 


3Qand 9M2017 Key Financial Results, USD million[6]

 

 

3Q 2017

3Q 2016

Growth Rate

9M 2017

9M 2016

Growth Rate

Net sales

4,845.19

4,156.46

16.57%

14,416.63

11,557.33

24.74%

Convenience stores

3,591.64

3,059.05

17.41%

10,693.41

8,523.40

25.46%

Hypermarkets

607.34

593.25

2.38%

1,844.23

1,715.66

7.49%

Magnit Family

251.80

220.59

14.15%

747.21

610.66

22.36%

Drogerie Stores

338.80

263.04

28.80%

976.36

657.94

48.40%

Wholesale

55.62

20.53

170.87%

155.42

49.67

212.90%

Gross Profit

1,276.29

1,166.25

9.44%

3,906.31

3,180.37

22.83%

GrossMargin, %

26.34%

28.06%

n/a

27.10%

27.52%

n/a

EBITDAR

552.14

595.43

(7.27%)

1,767.46

1,586.17

11.43%

EBITDARMargin, %

11.40%

14.33%

n/a

12.26%

13.72%

n/a

EBITDA

350.07

443.39

(21.05%)

1,190.56

1,173.87

1.42%

EBITDA Margin, %

7.23%

10.67%

n/a

8.26%

10.16%

n/a

EBIT

206.93

337.80

(38.74)%

763.79

897.05

(14.86)%

EBIT Margin, %

4.27%

8.13%

n/a

5.30%

7.76%

n/a

Net Income

117.30

229.27

(48.84)%

474.36

598.59

(20.75)%

Net Income Margin, %

2.42%

5.52%

n/a

3.29%

5.18%

n/a

 

Notes:

 

1)       Net revenue in USD terms is calculated using the average exchange rate for the period.

2)       This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

3)       Please note that there may be small variations in calculation of totals, subtotals and/ or percentage change due to rounding of decimals.


For further information, please contact:

 

Timothy Post

Head of Investor Relations

Email: post@magnit.ru

Office: +7-861-277-4554 x 17600

 

Dina Svishcheva

Deputy Director, Investor Relations

Email: Chistyak@magnit.ru

Office: +7-861-277-4554 x 15101

 

Media Inquiries

Media Relations Department

press@magnit.ru

 

Company description:

Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of September 30, 2017, Magnit operated 36 distribution centers and 15,697 stores (11,743 convenience, 432 hypermarkets and 3,522 drogerie stores) in 2,664 cities and towns throughout 7 federal regions of the Russian Federation.

 

In accordance with the reviewed IFRS consolidated financial statements for 1H 2017, Magnit had revenues of RUB 555 billion and an EBITDA of RUB 49 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.


[1] Based on management accounts

[2] Excluding wholesale

[3] Based on the average exchange rate for July 2017 - 59.6707 RUB per 1 USD, August 2017 - 59.6497 RUB per 1 USD, September 2017 - 57.6953 RUB per 1 USD

[4]LFL calculation base includes stores (all formats), which have been opened 12 months prior to the last month of the reporting period. i.e. by September 1, 2016.

[5]Unaudited Results

[6]Based on the average exchange rate for 3Q 2017 - 59.0195 RUB per 1 USD, 3Q 2016 - 64.6245 RUB per 1 USD, 9M 2017 - 58.3344 RUB per 1 USD, 9M 2016 -68.3667 RUB per 1 USD



ISIN: US55953Q2021
Category Code: MSCU
TIDM: MGNT
LEI Code: 2534009KKPTVL99W2Y12
OAM Categories: 2.2. Inside information
Sequence No.: 4765

 
End of Announcement EQS News Service

620809  20-Oct-2017 

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