Magnit

Magnit raises 2013 profit target

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Magnit increased its 2013 profitability target and said sales growth will be at the top end of a forecast range. Earnings before interest, taxes, depreciation and amortization as a percentage of sales will be “in line” with the previous year’s 10.6 percent, Krasnodar, southern Russia-based Magnit said today in a statement. The retailer had previously forecast a margin of 9.7 percent to 10 percent.

Magnit, run and owned by billionaire Sergey Galitskiy, has the highest Ebitda margin among publicly traded peers globally, according to Sberbank CIB. The margin in the first half of 2013 was 10.1 percent of sales. “The new guidance shows management’s confidence that the company will continue its strong performance and accelerate it in the fourth quarter,” Natalia Kolupaeva, an analyst at ZAO Raiffeisenbank in Moscow, said by phone.

Sales this year will rise 29 percent to 30 percent, Magnit said on September 25, compared with previous guidance of 27 percent to 30 percent. For 2014, the retailer forecast revenue growth of 25 percent, in line with analysts’ estimates compiled by Bloomberg.

Magnit also said it plans capital spending of $1.7 billion to $1.8 billion next year, at least as much as in 2013. It plans to open 1,000 convenience stores, 80 hypermarkets and 350 cosmetics outlets next year.

Magnit fell 1.4 percent to $62 at 9:51 a.m. in London, where the stock is traded. The company overtook X5 Retail Group NV (FIVE) in March as Russia’s largest retailer by sales. Its market value has increased by 54 percent this year to $29.3 billion.

Source: www.freshplaza.com

Magnit increases its reserves

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September 12, FMCG-retailer Magnit launched a new distribution center in Zelenodolsk. This is the 20th Magnit distributional center. Total area is 22,524 square meters. Thanks to the new distribution center, the company hopes to improve the quality of service in the Volga region.

Source: www.retailer.ru

Magnit ups revenue by 31.42% in H1 2013

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Magnit, the grocery retailer, received revenue of RUB 272.8bn ($8.2bn) in H1 2013, a growth of 31.42% year on year. Net profit rose by 39.67% year on year to RUB 14.5bn ($436m). EBITDA grew by 34.34% to RUB 27.6bn ($829.4m).
In January-June 2013, Magnit opened 532 new outlets, including 506 convenience stores, 12 hypermarkets, six mini-hypermarkets under the banner of Magnit Semeyny, and eight cosmetics stores. On 30 June 2013, the total company store count included 7,416 units (6,552 convenience stores, 138 hypermarkets, 26 Magnit Semeyny shops and 700 Magnit Kosmetik outlets).

Source: www.russiaretail.com

Outlook for Magnit and X5 Retail Group

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According to retail analysts at Kantar Retail, there is a positive outlook for Magnit and X5 Group from Russia – both retailers are expected to deliver good performances with new store openings planned over the next five years and a focus on multi-channel formats. Magnit is expected to enter the top 20 at number 12 – a big leap from its position at number 25 in the ranking – and sales are estimated to more than double by 2018 to €34.9bn.

Source: www.freshplaza.com

Magnit announces 30% sales rise

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Russian food retailer Magnit has announced a rise in sales by 30% in June, year-on-year, to stand at 47.5 billion rubles, after a rise of 34.5 percent in May.
Magnit, which recently overtook rival X5 as Russia’s biggest grocery chain by revenue, said the June result brought sales for the first six months of the year to 273 billion rubles, an increase of 31.5 percent.
The company, also Russia’s biggest food retailer by store count, opened 170 stores in June, bringing its total to 7,416.
Magnit has said it planned to grow revenue by between 27 and 29 percent in rouble terms this year, compared with about 34 percent in 2012, backed by a $1.8 billion capital spending programme.

Source: www.freshplaza.com

Moscow franchisee retail network “Monetka” is for sale

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The founders of retail network “Monetka” Sergey Lomakin and Artyom Khachatryan put it up for sale. There are nearly 100 stores in Moscow, the network is estimated at up to $200 million (according to some sources, up to $200 million). “Monetka” (LLC “Investproekt”) is a franchisee of the Ural network, which now numbers more than 400 stores.

The revenue of LLC “Investproekt” amounted to 7.6 billion rubles. a debt is 4 billion rubles in 2012. The estimated revenue in 2013 is to reach 8 billion rubles.

According to the market analytics, buyers may be the Russian major retail network Magnit that is going to conquer Moscow retail market and the biggest meat holding Miratorg that is planning to develop its retail network.

Source: www.retailer.ru

Magnit sales up again

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Russian food retailer Magnit said last week its sales rose by 33 percent in April, year-on-year, to stand at 45.8 billion roubles ($1.5 billion), in line with growth in the previous month.

Magnit, which recently overtook rival X5 as Russia’s biggest grocery chain by revenue, said the April result brought sales for the first four months of the year to 177 billion roubles, an increase of 31 percent.

The company, also Russia’s biggest food retailer by store count, opened 92 stores in April, bringing its total to 7,167 as of April 30.

Magnit had said it plans to grow revenue by between 27 and 29 percent in rouble terms this year, compared with about 34 percent in 2012, backed by a $1.8 billion capital spending programme.

Source: www.freshplaza.com

Magnit overtakes X5

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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

10,000 new Magnit stores in 5 years

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Magnit, Russia’s largest food retailer by market value, plans to open almost 10,000 stores in the next five years, or more than five a day on average.
Magnit wants to double the number of convenience stores to 12,000 by the end of 2017, and to quadruple the number of hypermarkets to 500, the Krasnodar, southern Russia-based retailer said.
Magnit has doubled its store network in the last three years, while shares have risen more than 150 percent. Magnit has a market value of about $21 billion in London, exceeding French retailer Carrefour SA’s (CA) $19.5 billion.
Magnit’s long-term targets look aggressive and may require about $12.8 billion of capital spending during the next five years funded by a sale of new shares, Mikhail Terentiev, an analyst at Otkritie Capital, said.
The retailer plans to use cash flow and borrowing in equal proportions to fund growth. Capital spending will be as much as $1.8 billion this year.

Source: www.freshplaza.com

Magnit revenues rises significantly

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Magnit’s full-year revenue and EBITDA rose significantly, which helped it book a more than 100% rise in net income.

Revenue in rubles increased by 34% YoY from 335,699.95 million RUR in 2011 to 448,661.13 million RUR in 2012. The top line growth was due to an increase in selling space as well as to a 5.26% increase of like-for-like sales (excl. VAT).

Revenue growth in dollar terms amounted to 26%: from US$ 11.4 million to US$ 14.4 million.

Gross margin grew from 24.33% in 2011 to 26.53% in 2012. Gross profit in rubles increased by 45.78% from 81,663.45 million RUR (US$ 2,778.86 million) to 119,051.79 million RUR (US$ 3,828.89 million).

EBITDA increased by 71.64% from 27,604.14 million RUR (US$ 939.32 million) in 2011 to 47,380.48 million RUR (US$ 1,523.83 million) in 2012. EBITDA margin in 2012 amounted to 10.56%. Net debt / EBITDA ration (in ruble terms) for 2012 amounted to 1.07.

2012 net income increased by 104.14% and amounted to 25,117.17 million RUR (US$ 807.81 million) vs. 12,303.84 million RUR (US$ 418.68 million) in 2011.

Source: www.freshplaza.com