Russian retailer Magnit booked a 71.62% increase in full-year EBITDA today (22 January), driven by improved margins and higher sales.
The company said that EBITDA rose from RUB27.6bn (US$939.3m) in 2011 to RUB47.37bn in 2012. In 2012, the group was able to strengthen its EBITDA margin, which rose to 10.56%, up from 8.22% in 2011.
Total sales rose 34% during the period, climbing to RUB335.7bn. Growth was driven by space expansion. Throughout 2012, the group opened 1,575 stores. Of these 1,040 were convenience outlets.
Like-for-like sales were also up, climbing 5.26% excluding VAT.
Commenting on the result, CEO Sergey Galitskiy said Magnit intends to invest US$1.8bn as it looks to drive higher sales through space expansion in 2013.
"We are already thinking of 2013 and have set a challenging task for ourselves to open over 1,100 convenience stores, over 60 stores of the hypermarket and Magnit family format, and 250 cosmetics stores," he revealed.
OJSC "Magnit" announces unaudited FY 2012 results Krasnodar, January 22, 2013: OJSC "Magnit" (the "Company"; MICEX and LSE: MGNT) is pleased to announce its unaudited FY 2012 financial results prepared in accordance with IFRS .
During 2012 the Company added (net) 1,575 stores (1,040 convenience stores, 36 hypermarkets, 17 Magnit Family stores and 482 cosmetics stores) and increased its selling space by 29.39% in comparison to 2011 from 1,970.16 thousand sq. m. to 2,549.26 thousand sq. m. The total store base as of December 31, 2012 reached 6,884 stores (6,046 convenience stores, 126 hypermarkets, 20 Magnit Family stores and 692 cosmetics stores).
Revenue in rubles increased by 34% YoY from 335,699.950000million RUR in 2011 to 448,661.13 million RUR in 2012. The top line growth was due to an increase in selling space as well as to a 5.26% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 26%: from US$ 11,423.26 million to US$ 14,429.65 million.
Gross margin grew from 24.33% in 2011 to 26.52% in 2012. Gross profit in rubles increased by 45.71% from 81,663.45 million RUR (US$ 2,778.86 million) to 118,994.62 million RUR (US$ 3,827.05 million).
EBITDA increased by 71.62%
2012 net income increased by 103.15% and amounted to 24,994.79 million RUR (US$ 803.87 million) vs. 12,303.84 million RUR (US$ 418.68 million) in 2011.
Sergey Galitskiy, the Company's CEO, provided the following comments on the published results:
"Dear Ladies and Gentlemen!
We carry on the tradition to publish preliminary financial results for the year as soon as possible, in order that you may understand what is going on with Magnit.
In the fourth quarter we set another record for the EBITDA margin and thus, finished a successful year for us, which is reflected in the current share price.
We are already thinking of 2013 and have set a challenging task for ourselves to open over 1,100 convenience stores, over 60 stores of the hypermarket and Magnit family format, and 250 cosmetics stores. We also hope that this year we will launch 4 distribution centers and buy at least 1,200 trucks. We plan that capex will total approximately US$1.8 bn. I walk you through these numbers in order to indicate how hard we will work this year.
Knowing that the market tends to immediately extrapolate any success for many years ahead we would like to caution our investors from being overly optimistic.
The results which we have released are not bad. We appreciate your positive appraisal of our results. Both the Company and ourselves are travelling though this life journey for the first time and we are thus, unable to know how sustainable are these high results. The most important thing for us is the resilience and competitiveness of the Company. We are still in the process of winning market share and therefore, we will do our best to be highly aggressive. We appreciate all of our investors who were with us last year. We will make all efforts to justify your confidence in 2013".