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OJSC 'MAGNIT' (FRA:5M71) Magnit's production facilities put out record-breaking 360,000 tonnes of goods

Directive transparence : information réglementée

19/01/2022 08:30

MAGNIT PJSC (MGNT)
Magnit's production facilities put out record-breaking 360,000 tonnes of goods

19-Jan-2022 / 10:30 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

 

 

 

Magnit's Production Facilities Put Out Record-Breaking 360,000 Tonnes of Goods

Krasnodar, Russia (January 19, 2022): Production facilities of Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, have set a new record by producing almost 360,000 tonnes of goods in 2021, which is 17% more than in 2020. These products are sold under the Company's private labels in Magnit stores located in 65 Russian regions.

 

Increased production output was achieved thanks to the introduction of new items to the private label range, improved yields at greenhouse complexes, and ramp-up of production rates at new facilities. Magnit is the only retailer in Russia that operates its own food production facilities - its 17 sites, which are spread across different Russian regions, manufacture about 500 articles.

 

As of the end of 2021, the Company's production facilities put out nearly 102,000 tonnes of fresh fruits and vegetables (+11%), about 17,800 tonnes of confections (+7%), more than 150,000 tonnes of dry and frozen foods (+ 30%), 46,600 tonnes of flour-based products (in line with 2020). To ensure high availability of socially important goods for its customers, Magnit increased private label sugar packaging capacities fivefold and reached a level of 26,000 tonnes. 

 

In 2021, the Company's agro-industrial facilities in Krasnodar region focused on tomato production due to import restrictions and increased their output by 16%, as well as introduced 7 new tomato varieties. The best performance was achieved in production of cherry tomatoes (+35%). As a result, the share of tomatoes produced by the Company in sales reached 21.3%. The mushroom complex saw a record-high crop of champignon mushrooms - 7,000 tonnes (+2%), and the share of Magnit's home-grown champignon mushrooms in sales now amounts to 66.7%.

 

A major portion of the Company's production facilities is located in Krasnodar region - Magnit's home territory. Konditer Kubani (Kuban's Confectioner) and Kubanskiy Kombinat Khleboproduktov (Kuban Cereal Products Plant) - two key factories located in Magnit's Industrial Park - produced nearly 65,000 tonnes of goods. The share of Magnit's private label pasta in sales reached 22.9% in 2021. Konditer Kubani increased its output by almost 7% and introduced 8 new items in fruit jellies, hard candies, truffles, and other segments. Kubanskiy Kombinat Khleboproduktov also expanded its assortment with items like gingerbreads and sugar cookies. To ensure better cost prices, the Company opened a workshop to produce fillings for flour-based confections, which were previously sourced from third parties. 

 

The Novorossiysk citrus fruit packaging facility, launched in 2020, supplied nearly 12,000 tonnes of packaged products to Magnit stores. Cheese packaging facilities recorded a 17% uplift and put out 36,000 tonnes of goods thanks to the previously launched facilities in Penza and Dmitrov reaching their full capacity.

 

Overall, Magnit's production facilities in different regions of the country produce vegetables, mushrooms, sweets, cookies and biscuits, pasta, frozen foods (pelmeni, chebureki, blintzes, vareniki), nuts, seeds, water, vinegar, syrups, tea, snacks, breakfast cereals, spices, and others.

«

Ekaterina Lobanova

Director for Commercial Procurement and Category Management Support at Magnit

»

 

 

"Our production facilities serve as key suppliers of goods for our private labels. We see great potential for further private label growth in various categories and aim for 25% of sales by 2025. Private labels become the main "differentiator" of the assortment in our chain - every year, we introduce a pool of new goods for customers and update production technologies to meet a diverse number of demands".

 

 

 

 

For further information, please contact:

 

Dina Chistyak

Head of Investor Relations 
dina_chistyak@magnit.ru

Office: +7 (861) 210 9810 x 15101

 

Media Inquiries                    Twitter

press@magnit.ru                    @MagnitIR

 

 

 

 

Note to editors

 

"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, 2021, Magnit operated 45 distribution centers and 25,315 stores in 3,840 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the unaudited IFRS 16 management accounts results for 9M 2021, Magnit had revenues of RUB 1,311.5 billion and an EBITDA of RUB 151.4 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+.

 

 

 

Forward-looking statements

 

This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and/or store openings are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.

 

 



ISIN: US55953Q2021
Category Code: MSCU
TIDM: MGNT
LEI Code: 2534009KKPTVL99W2Y12
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 137373
EQS News ID: 1270122

 
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