Magnit overtook sales at its rival X5 Retail Group NV for the first time since the company opened stores 15 years ago.
X5, controlled by billionaire Mikhail Fridman’s Alfa Group, posted an 8.1 percent increase in first-quarter sales to 126 billion rubles ($4.1 billion), it said in a statement. Krasnodar-based Magnit said earlier this week that quarterly sales rose more than 30 percent to 131 billion ruble.
“I’m afraid to be found immodest, but for the first time over the last 15 years after opening of the first store we have become the leader in the food retail sector by sales,” Galitskiy said in a statement.
Since 2008 Magnit has tripled its store network to more than 7,000, building new outlets from scratch in Russia’s regions. In 2011, Magnit exceeded the market value of X5, which had expanded by acquiring rivals including Karousel an Kopeyka.
“In the last two years, X5 has been having problems in digesting its acquisitions and managing stores, which led to customer outflow,” Ivan Kushch, analyst at Moscow-based VTB Capital said by phone. “Magnit was set to overtake it by sales sometime this year.”
Magnit has risen 72 percent in the past 12 months, giving it a market value of $23.7 billion. X5 is worth $4.8 billion after falling 22 percent over the same period.
Source: www.freshplaza.com