OREANDA-NEWS. On May 02, 2007 OJSC "Magnit" (the “Company”; RTS: MGNT), Russia’s leading retail chain in terms of number of stores and customers, released its 12M2006 financial results prepared in accordance with IFRS and reviewed by Deloitte and Touche, reported the press-centre of OJSC "Magnit".
During 2006 the Company opened 393 stores and increased its selling space by 36, 67% YoY from 382, 61 thousand sq. m. at the end of 2005 to 522, 92 thousand sq. m. at the end of 2006.
Net revenue of the Company increased by 52, 92% YoY in rouble terms, from 44, 53 billion roubles in 2005 to 68, 10 billion roubles in 2006. Net revenue increase was due to increase of selling space as well as 13, 19% increase of like-for-like sales in rouble terms (ex. VAT). Like-for-like sales increase in its turn was driven by 2, 8% traffic inflow (LFL) and 10, 11% average ticket increase.
Net revenue in USD terms increased by 58, 78% YoY, from 1 577, 67 million USD in 2005 to 2 505, 03 million in USD 2006.
Gross margin improved from 16, 8% in 2005 to 18, 3% in 2006 due to the better purchasing terms as well as an in-house logistics improvement.
EBITDA margin increased by 55, 41% from 78, 88 million USD in 2005 to 122, 60 million USD in 2006.
In 2006 the Company increased by 54, 56% and amounted to 56, 93 million USD of net income vs. 36, 83 million USD in 2005.
Sergey Galitsky, the Company’s CEO, provided the following comments on the published 2006 results: “Last year we opened 393 stores and demonstrated quite good LFL results which allowed us to exceed our own sales forecast for 2006. The year was marked by further organic growth of the company in the “convenience store” format and strategic decision to enter the hypermarket format, which is new for us. We estimate the year as successful: the company managed to keep up its position on the market, favorably carried out IPO, and we hope the 2006
results did not disappoint our investors.
In 2007 we are looking forward with inspiration to our market opportunities: taking into account the aggressive growth of the company, the share of our retail chain constitutes a little more than 1% which reflects the huge potential of the national market”.