Magnit reports 38.2% total sales growth (19.1% adjusted for the Dixy acquisition) and 7.0% EBITDA margin in 1H 2022
MAGNIT PJSC (MGNT)
Magnit reports 38.2% total sales growth (19.1% adjusted for the Dixy acquisition) and 7.0% EBITDA margin in 1H 2022
19-Aug-2022 / 09:00 MSK
Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Magnit Reports 38.2% total sales growth (19.1% ADJUSTED FOR THE DIXY ACqUISItiON) and 7.0% EBITDA margin in 1H 2022
Krasnodar, Russia (August 19, 2022):Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia’s leading retailers, announces its reviewed 1H 2022 financial results prepared in accordance with IFRS.
38.2%
TOTAL REVENUE growth
1H 2022 Key Operational and Financial Highlights
Total revenue increased by 38.2% y-o-y to RUB 1,136.3 billion. Total revenue adjusted for the Dixy acquisition increased by 19.1%;
Net retail sales reached RUB 1,113.8 billion increasing 39.0% y-o-y. Net retail sales growth adjusted for the Dixy acquisition was 19.8%;
LFL[1]sales growth of 12.6% driven by 13.1% average ticket growth and 0.5% LFL traffic decline;
23.2%
Gross margin
The Company opened 851 stores on gross basis or 654 on a net basis. As of June 30, 2022 the total store base was 26,731;
Selling space increase of 261 thousand sq. m. bringing total selling space to 9,258 thousand sq. m. (19.5% y-o-y growth);
The Company redesigned 184 stores (175 Magnit and 5 Dixy convenience stores, three supermarkets and one drogerie). As at June 30, 2022 79% of convenience stores, 46% of supermarkets and 63% of drogeries are either new or refurbished;
Gross profit[2] increased by 38.4% y-o-y to RUB 263.6 billion with a flat margin y-o-y of 23.2% as a result of higher shrinkage offset by lower transportation costs;
Cash SG&A[3] expenses as a percentage of sales decreased by 35 bps to 17.0% on lower personnel expenses and positive operating leverage effect. This was partially offset by higher other costs;
1.2x
net debt / ebitda ratio
EBITDA was RUB 80.1 billion with a 7.0% margin – flat y-o-y driven by gross margin dynamics and strict cost control offset by other income and expenses dynamics;
Net income increased by 39.6% y-o-y to RUB 32.0 billion with a flat margin y-o-y of 2.8%. In the second quarter it was predominantly driven by one-off effects of FX gain on direct import operations and interest income on bank deposits;
As of June 30, 2022 Net Debt was RUB 184.0 billion. Net Debt / EBITDA ratio was 1.2x[4].
Key events after the reported period
Magnit published its third annual sustainability report. The Company delivered notable results in reducing specific greenhouse gas emissions, water and electricity consumption, and food waste and increasing the share of recyclable packaging and launched several major ESG projects.
On August 18, 2022 Magnit has notified CB JP Morgan International LLC (“Custodian”) of the need to take actions to ensure that holders of global depositary receipts (“GDRs”) representing the Company’s shares deposited with Russian depositaries receive the corresponding number of the Company’s shares (“Automatic Conversion”).
Total revenue in 1H 2022 increased by 38.2% partly driven by the consolidation of the Dixy business. Adjusted for the Dixy acquisition sales growth was 19.1%. This growth was underpinned by net retail sales growth of 39.0% and wholesale revenue growth of 8.6%. Wholesale operations accounted for 2.0% of total sales (down from 2.5% a year ago).
Gross Profit in 1H 2022 increased by 38.4% y-o-y to RUB 263.6 billion. Gross margin remained broadly flat y-o-y at 23.2% as a result of higher shrinkage offset by lower transportation costs. Promotional intensity on average for the first six months was slightly lower y-o-y.
Transportation costs decreased by 23 bps y-o-y to 1.9% as a percent of sales driven by operating leverage and higher utilization of the Company’s own truck fleet.
Shrinkage as a proportion of sales increased by 22 bps y-o-y driven by consolidation of Dixy business as well as losses of fruits & vegetables in international transit due to supply-chain disruptions.
IAS 17
IFRS 16
RUB mln
1H 2022
1H 2021
Change
1H 2022
1H 2021
Change
Staff costs
98,115
73,801
32.9%
98,115
73,801
32.9%
as a % of sales
8.6%
9.0%
-34 bps
8.6%
9.0%
-34 bps
Rent
48,712
35,348
37.8%
2,418
With webdisclosure.com, you can follow all the latest financial news in real time from the best sources for companies listed on the Paris, Brussels, Amsterdam, Lisbon, Frankfurt and New York stock exchanges. You'll have access to summary articles written by us and press releases published by the companies themselves.
