Magnit retail chain, one of Russia’s largest retail operators, has reported a worse-than-expected drop in profit for its fiscal first quarter by 5.5% y-o-y to USD 61.01m according to IFRS. In RUB terms the company’s net profit dropped by 7.5% and made RUB 1.786bn. The company’s income within the fiscal period grew by 56.5% and reached USD 2.564bn. In RUB terms the income went up by 53.14% and reached RUB 75.052bn. The income growth is due to the sales area expansion and growth of the like-for-like sales by 20.15% (VAT exclusive). The retailer’s EBITDA in USD terms grew by 30% to USD 161.97m, in RUB terms – by 27.25% to RUB 4.741bn.
CEO Sergei Galitsky noted: “We liked sales growth in the first quarter and did not transfer additional expenditures through increase of fuel costs and social tax to the customer which resulted in lower EBITDA versus consensus. But from the second quarter we have started to gradually transfer increased costs to the customer, at that we are confident in fulfilling EBITDA margin and sales plan provided earlier.”
Source: www.retail.ru, www.freshplaza.com