:. Food Industry News

Categories: Corporate Results

Russia's Magnit Food Stores H1 Revenues Rise 51 Pct

Source: Reuters
15/07/2008

Moscow, July 15 - Russia's largest food retail chain Magnit on Tuesday posted a 51 percent jump in dollar revenues in the first half of the year, helped by new store openings and a stronger rouble.

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Magnit said sales reached $2.5 billion, as it opened 124 stores during the first six months of 2008, taking its total to 2,321 outlets. Revenues were also up 39 percent in rouble terms.

The rouble strengthened 3.9 percent against the U.S. dollar in January-June of 2008, compared with a 1.4 percent appreciation in the same period of 2007.

"The accelerating sales growth leads us to believe that Magnit can meet our sales forecast, as the company's newly opened hypermarkets should approach maturity and therefore higher sales per square metre by end-2008," said UniCredit Aton.

"Also, we note that approximately 30 percent of new openings usually occur in the last quarter and approximately 30 percent of revenues are earned in the last quarter."

Like-for-like sales at Magnit rose 29 percent in dollar terms and 18.4 percent in rouble terms. The average amount spent rose 33.4 percent and 22.5 percent respectively.

Shares in Magnit were up 0.36 percent at 1,118 roubles by 0950 GMT ($48.13) on the MICEX bourse.



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