MAGNIT PJSC (MGNT) Magnit reports 37.7% total sales growth (18.5% adjusted for Dixy acquisition) and 12.0% LFL sales growth in 1Q 2022
29-Apr-2022 / 18:50 MSK Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
Magnit Reports 37.7% total sales growth (18.5% adjusted for dixy acquisition) and 12.0% LFL Sales Growth in 1Q 2022 Krasnodar, Russia (April 29, 2022): Magnit PJSC (MOEX and LSE: MGNT; Magnit, the Company), one of Russia's leading retailers, announces its 1Q 2022 operational and unaudited financial results. 37.7% TOTAL REVENUE growth | 1Q 2022 Key Operational and Financial Highlights - Total revenue increased by 37.7% y-o-y to RUB 547.7 billion. Total revenue adjusted for the Dixy acquisition increased by 18.5%;
- Net retail sales reached RUB 534.8 billion increasing 37.9% y-o-y. Net retail sales growth adjusted for the Dixy acquisition was 18.8%;
- LFL[1] sales growth of 12.0% driven by 11.1% average ticket growth and 0.8% LFL traffic growth;
| 12.0% lfl sales growth 23.1% gross margin | - The Company opened 657 stores on a gross basis (459 Magnit and 8 Dixy convenience stores as well as 190 drogeries) or 528 stores on a net basis. As of March 31, 2022 the total store base was 26,605;
- Selling space increase of 238 thousand sq. m., bringing total selling space to 9,235 thousand sq. m. (21.4% y-o-y growth);
- The Company redesigned 163 stores (157 Magnit and 5 Dixy convenience stores and one drogerie). As at March 31, 2022, across Magnit brand 79% of convenience stores, 45% of supermarkets and 63% of drogeries are either new or refurbished;
- Gross Profit[2] increased by 37.7% y-o-y to RUB 126.8 billion. Gross margin remained flat y-o-y at 23.1% as a result of favourable product and format mix offset by higher shrinkage;
| | - EBITDA was RUB 37.7 billion with a 6.9% margin driven by consolidation of Dixy business with lower profitability;
- Net income remained flat y-o-y at RUB 10.9 billion with a margin of 2.0%.
|
835 pharmacies covered by magnit online drug reservation service | Key events in 1Q 2022 and after the Reported Period - Magnit opened its first cosmetics store in Uzbekistan;
- Magnit launched its own courier service and started piloting 60-minute express delivery using its own couriers in Moscow;
- The Company launched two dark stores in Saint-Petersburg focused on express delivery within one hour;
- Magnit announced its plans to launch a modern high-tech coffee roasting and packaging operation at its Tver facility in the fall of 2022;
- Magnit has connected pharmacies at Ural federal district to the drug reservation service which now covers 835 pharmacies in 58 regions;
|
Consolidation of the Dixy business and changes to the reporting standards Magnit completed the acquisition of the Dixy retail business on July 22, 2021, and subsequent performance of Dixy has been consolidated into Magnit's results. Sales and operating results of the stores under the Dixy brand are reported separately, and growth metrics will be published starting from 3Q 2022. Dixy stores are not included in the LFL panel; this will begin after full 12 months of operations following consolidation. The Dixy retail business does not form a separate segment - Magnit will continue reporting consolidated financial results for the Group. 1Q 2022 Operating Results LFL Results[3] | Average Ticket | Traffic | Sales | Total (Magnit excl. Dixy) | 11.1% | 0.8% | 12.0% | Convenience Stores | 10.8% | 1.0% | 12.0% | Supermarkets | 11.0% | -4.0% | 6.6% | Drogerie Stores | 16.4% | 2.8% | 19.7% |
Retail Sales | 1Q 2022 | 1Q 2021 | Change | Change, % | Total Net Retail Sales, million RUB | 534,824 | 387,899 | 146,925 | 37.9% | Magnit | 460,746 | 387,899 | 72,847 | 18.8% | Convenience Stores[4] | 358,232 | 299,942 | 58,290 | 19.4% | Supermarkets[5] | 53,751 | 50,115 | 3,636 | 7.3% | Drogerie Stores | 45,927 | 35,011 | 10,916 | 31.2% | Other Formats[6] | 2,836 | 2,831 | 5 | 0.2% | DIXY | 74,078 | n/a | n/a | n/a | Convenience Stores | 70,525 | n/a | n/a | n/a | Supermarkets[7] | 3,554 | n/a | n/a | n/a | Number of Tickets, mln | 1,357 | 1,103 | 254 | 23.0% | Magnit | 1,179 | 1,103 | 76 | 6.9% | Convenience Stores | 991 | 922 | 69 | 7.5% | Supermarkets | 76 | 79 | -3 | -3.5% | Drogerie Stores | 105 | 94 | 11 | 12.1% | Other Formats | 6 | 8 | -1 | -16.8% | DIXY | 178 | n/a | n/a | n/a | Convenience Stores | 173 | n/a | n/a | n/a | Supermarkets | 5 | n/a | n/a | n/a | Average Ticket[8], RUB | 394 | 352 | 42 | 12.1% | Magnit | 391 | 352 | 39 | 11.1% | Convenience Stores | 361 | 325 | 36 | 11.1% | Supermarkets | 707 | 636 | 71 | 11.2% | Drogerie Stores | 436 | 373 | 64 | 17.1% | Other Formats | 428 | 357 | 70 | 19.7% | DIXY | 416 | n/a | n/a | n/a | Convenience Stores | 408 | n/a | n/a | n/a | Supermarkets | 709 | n/a | n/a | n/a |
Stores and Selling Space | 1Q 2022 | 1Q 2021 | Change | Change, % | Number of Stores (EOP) | 26,605 | 21,900 | 4,705 | 21.5% | Magnit | 24,234 | 21,900 | 2,334 | 10.7% | Convenience Stores | 16,620 | 15,098 | 1,522 | 10.1% | Supermarkets | 468 | 471 | -3 | -0.6% | Drogerie Stores | 7,146 | 6,331 | 815 | 12.9% | DIXY | 2,371 | n/a | n/a | n/a | Convenience Stores | 2,333 | n/a | n/a | n/a | Supermarkets | 38 | n/a | n/a | n/a | Store Openings (Net) | 528 | 336 | 192 | 57.1% | Magnit | 608 | 336 | 272 | 81.0% | Convenience Stores | 430 | 187 | 243 | 129.9% | Supermarkets | -2 | 1 | -3 | -300.0% | Drogerie Stores | 180 | 148 | 32 | 21.6% | DIXY | -80 | n/a | n/a | n/a | Convenience Stores | -79 | n/a | n/a | n/a | Supermarkets | -1 | n/a | n/a | n/a | Total Selling Space (EOP), th. sq.m | 9,235 | 7,606 | 1,629 | 21.4% | Magnit | 8,405 | 7,606 | 799 | 10.5% | Convenience Stores | 5,797 | 5,169 | 627 | 12.1% | Supermarkets | 935 | 943 | -8 | -0.8% | Drogerie Stores | 1,645 | 1,460 | 185 | 12.7% | Other formats | 28 | 33 | -6 | -16.9% | DIXY | 830 | n/a | n/a | n/a | Convenience Stores | 757 | n/a | n/a | n/a | Supermarkets | 73 | n/a | n/a | n/a | Selling Space Addition (Net), th. sq.m | 238 | 109 | 129 | n/a | Magnit | 200 | 109 | 91 | n/a | Convenience Stores | 161 | 80 | 82 | n/a | Supermarkets | -2 | 2 | -4 | n/a | Drogerie Stores | 41 | 32 | 9 | n/a | Other formats | 0 | -4 | 4 | n/a | DIXY | 37 | n/a | n/a | n/a | Convenience Stores | 39 | n/a | n/a | n/a | Supermarkets | -1 | n/a | n/a | n/a |
6.2% LTM sales density[9] improvement y-o-y 21.4% selling space growth y-o-y | Trading Performance Total sales in 1Q 2022 grew by 37.7% y-o-y to RUB 547.7 billion. Net retail sales grew by 37.9% y-o-y, driven by a combination of 21.4% selling space growth and 12.0% LFL sales growth. Net retail sales achieved by the stores under the Magnit brand accelerated to 18.8% from 15.6% in 4Q 2021 driven by LFL sales growth in the mature outlets and higher selling space growth. Net retail sales growth continued to outpace selling space growth on further improvement of sales densities. Overall sales densities in 1Q 2022 (excluding stores under the Dixy brand) improved by 2.0% q-o-q and 6.2% y-o-y while across the Company's main convenience store format these improved by 1.7% q-o-q and 6.8% y-o-y. Net retail sales growth demonstrated strong monthly performance and exceeded 30% in January and February 2022. In March 2022 net retail sales grew sharply to 49.2% driven by accelerated inflation and stockpiling effect when customers were stocking up with dry food and essentials. Selling space growth increased further from 20.0% in the previous quarter to 21.4% in the reported quarter, driven by accelerated organic expansion and the Dixy acquisition (2,477 Dixy stores added in 3Q 2021 but consolidated from July 22nd, 2021). Selling space growth adjusted for the Dixy acquisition accelerated to 10.5% compared to the previous quarter, reflecting 59% increase y-o-y in the number of store openings per quarter (649 in 1Q 2022 compared to 407 in 1Q 2021 on gross basis). | | LFL sales growth accelerated further from 9.9% in the previous quarter to 12.0% in 1Q 2022 predominantly driven by strong forward-buying effect in March. 373 stores entered LFL panel in 1Q (including 212 convenience stores and 161 drogeries). Only 7% of Magnit's selling space is currently in the 'ramp-up' phase with 93% already mature. All regions showed robust LFL sales growth with North-West and Siberian regions delivering the strongest results. LFL sales growth in the reported quarter was driven by strong LFL average ticket growth of 11.1% due to higher number of SKUs in the average customer basket and acceleration of inflation. LFL traffic turned positive and stood at 0.8% driven by continued inflow of unique customers gained from other players, and frequency of visits. Starting from March when customers were stocking up on dry food and essentials, traffic growth accelerated mainly on the back of increased visit frequency. Revenue and LFL sales growth accelerated versus previous quarter despite gradual decline of promo activity starting from the second half of March. Cosmetics and detergents were the fastest growing categories in the reported quarter as customers were stocking up with essential non-food items. | 61 mln of loyalty program cardholders | During the quarter the number of loyalty programme cardholders reached 61.1 million. Company-wide, the proportion of tickets using the loyalty card was 55% with sales penetration of 68%. During peak days of the quarter it reached 58% and 72% correspondingly. The loyalty programme continues to deliver positive cross-format gains - 44% of Magnit's customer base at the end of the reporting period (compared to 43% in the previous quarter) visit 2+ store formats. Average ticket of the active user is 1.8x higher vs transaction without loyalty card. |
12.0% LFL sales growth in Magnit convenience in 1Q 2022 | Store Network Development and Performance by Format The convenience segment within the Magnit brand generated 67.0% of total net retail sales in 1Q 2022. In the quarter Magnit more than doubled its expansion programme y-o-y and opened (gross) 459 convenience stores (241 in 1Q 2021). The Company continued its efficiency campaign and closed 29 convenience stores compared to 54 stores a year ago. Magnit added 430 convenience stores (net) during the quarter. The selling space growth of convenience stores picked up to 12.1% y-o-y, driving a 19.4% acceleration in sales in the format driven by LFL sales growth of 12.0% and selling space growth of 12.1%. LFL sales growth was driven by LFL average ticket growth of 10.8% while LFL traffic growth was 1.0%. | 4.9% y-o-y improvement of sales density of supermarkets in 1Q 2022 | Magnit supermarkets generated 10.1% of the Group's net retail sales in the reported quarter. During 1Q 2022 the Company did not open new supermarkets and closed two stores, focusing on improvement of sales density of the existing network. Selling space across this format remained almost flat y-o-y. LFL sales growth of the large format stores accelerated from 3.1% in the previous quarter to 6.6% in 1Q 2022. This was driven by 11.0% average ticket growth and 4.0% traffic decline. Traffic reduction slowed down compared to the previous quarter but was still impacted by the ramp-up phase of the reopened stores after redesign campaign which accelerated last year (16% of large format store portfolio has been redesigned in 2021). As a result, net retail sales growth of supermarkets improved to 7.3% in the quarter. | 12.7% y-o-y selling space increase in drogerie in 1Q 2022 13.9% share of the Dixy stores in the total net retail sales in 1Q 2022 9.2 RUB billion GMV in 1Q 2022 | The sales contribution of Magnit's drogerie format represented 8.6% of total net retail sales. During 1Q 2022 Magnit opened (net) 180 cosmetics stores. Selling space increased by 12.7% y-o-y or by 185 thousand sq. m. Driven by this increase in selling space and LFL sales growth of 19.7%, sales grew 31.2% - the strongest performance across all Magnit's store formats. LFL traffic growth turned positive and stood at 2.8%. LFL average ticket growth accelerated to 16.4% driven by higher number of items per basket when customers were stocking up with non-food essentials. On-shelf inflation in the drogerie format was in line with food formats. During 1Q 2022 Magnit continued its renovation programme and redesigned 157 Magnit and 5 Dixy convenience stores as well as one drogerie. This resulted in the combined share of refurbished and new stores across Magnit brand at: 79% for convenience stores, 45% for supermarkets and 63% for the drogerie format. The share of Dixy stores in the Group's total net retail sales reached 13.9% in the first quarter including 13.2% of Dixy convenience stores. In the reported period eight convenience stores were opened, while some stores were transformed into Magnit branded outlets, resulting in 2,371 stores and 830 thousand sq. m. of selling space as at March 31, 2022. On pro-forma basis, Dixy stores demonstrated strong LFL sales dynamics, in line with Magnit business, driven by mature stores, despite high comparison base and strong sales density overall. E-commerce Magnit has been developing e-commerce services since the third quarter of 2020. The Company currently runs a number of online delivery projects, including own delivery and partnerships (express delivery, regular delivery, e-pharma, cosmetics and partnerships). Total e-commerce GMV (incl. VAT) in the reported period was RUB 9.2 billion compared to RUB 0.9 billion in 1Q 2021. During 1Q 2022, the average number of orders per day reached 91,297. In the end of March number of daily orders exceeded 100 thousand. The average ticket across all online services was c. RUB 1,116 including VAT. This average ticket is approximately 2.7x higher than in the convenience stores (RUB 413 in 1Q 2022). This is mostly due to a larger number of items per basket. The average ticket within Magnit own delivery service was RUB 1,270. Magnit's e-commerce services today cover over 7,303 offline stores and 21 dark stores in 66 regions and 410 cities, with 71% of the current revenue generated outside Moscow and St. Petersburg. The largest and fastest growing segment is express delivery, where orders are expected to be fulfilled within 60 minutes. |
| 1Q 2022 | 1Q 2021 | Change | Change, times/% | GMV, billion RUB | 9.2 | 0.9 | 8.3 | 10.6x | Number of orders per day (average) | 91,297 | 9,500 | 81,797 | 9.6x | Average ticket incl. VAT, RUB | 1,116 | 1,100 | 15 | 1.4% | Number of stores covered, EOP | 7,303 | 1,300 | 6,003 | 5.6x |
274 My Price discounters as at march 31, 2022 | Discounters Magnit started piloting discounters in July 2020 as a response to the fast changing economic environment. The concept is aimed at price-sensitive consumers who frequently make minor purchases of traditional goods or stock up on products. As at March 31, 2022 the Company had 274 operating 'My Price' discounters compared to 33 stores a year ago. During the reported quarter Magnit opened 84 stores including 72 new outlets and 12 stores reformatted from convenience stores. Average ticket at My price discounters increased by 14% y-o-y and stood at RUB 338. LFL sales growth of outlets reformatted from convenience stores reached 50%. Recent Trading Total sales growth and LFL sales growth in April 2022 month-to-date run ahead of the 1Q average but below March. Customer environment has normalized and shopping patterns returned to normal without stockpiling effect. Within the structure of LFL sales, traffic is stabilizing while average ticket growth continues to accelerate on higher y-o-y inflation (which started decelerating from its peak levels in March). |
Financial Results for 1Q 2022 | IAS 17 | IFRS 16 | RUB mln | 1Q 2022 | 1Q 2021 | Change | 1Q 2022 | 1Q 2021 | Change | Total Revenue | 547,708 | 397,889 | 37.7% | 547,708 | 397,889 | 37.7% | Retail | 534,824 | 387,899 | 37.9% | 534,824 | 387,899 | 37.9% | Wholesale | 12,883 | 9,990 | 29.0% | 12,883 | 9,990 | 29.0% | Gross Profit | 126,752 | 92,039 | 37.7% | 126,764 | 92,042 | 37.7% | Gross Margin, % | 23.1% | 23.1% | 1 bps | 23.1% | 23.1% | 1 bps | SG&A, % of Sales | -20.1% | -20.2% | 9 bps | -18.8% | -18.8% | -4 bps | EBITDA pre LTI[10] | 37,865 | 28,003 | 35.2% | 61,400 | 45,452 | 35.1% | EBITDA Margin pre LTI, % | 6.9% | 7.0% | -12 bps | 11.2% | 11.4% | -21 bps | EBITDA | 37,662 | 27,678 | 36.1% | 61,197 | 45,127 | 35.6% | EBITDA Margin, % | 6.9% | 7.0% | -8 bps | 11.2% | 11.3% | -17 bps | EBIT | 22,600 | 16,956 | 33.3% | 30,299 | 23,160 | 30.8% | EBIT Margin, % | 4.1% | 4.3% | -14 bps | 5.5% | 5.8% | -29 bps | Net Finance Costs | -3,700 | -2,581 | 43.4% | -13,666 | -10,164 | 34.5% | FX Gain/ (Loss) | -4,997 | -190 | n/a | -5,215 | -211 | n/a | Profit before Tax | 13,902 | 14,186 | -2.0% | 11,419 | 12,785 | -10.7% | Taxes | -2,997 | -3,311 | -9.5% | -2,498 | -3,031 | -17.6% | Net Income | 10,905 | 10,875 | 0.3% | 8,921 | 9,753 | -8.5% | Net Income Margin, % | 2.0% | 2.7% | -74 bps | 1.6% | 2.5% | -82 bps |
| 23.1% Gross margin in 1Q 2022 6.9% ebitda margin in 1Q 2022 2.0% Net income margin in 1Q 2022 | Total revenue in 1Q 2022 increased by 37.7%. This growth was underpinned by net retail sales growth of 37.9% and wholesale revenue growth of 29.0%. Wholesale operations accounted for 2.4% of total sales. Gross Profit in 1Q 2022 increased by 37.7% y-o-y to RUB 126.8 billion. Gross margin remained flat y-o-y at 23.1% as a result of favourable product and format mix offset by higher shrinkage. Promotional intensity was flat y-o-y with some deceleration starting from the second half of March. Shrinkage as a proportion of sales increased by 24 bps y-o-y predominantly driven by consolidation of Dixy business with higher shrinkage and losses of fruits & vegetables in transit due to supply-chain disruption in March. SG&A costs decreased by 9 bps y-o-y to 20.1% as a percent of sales due to lower personnel expenses and positive operating leverage effect. This was partially offset by accelerated expansion and redesign with a higher share of stores in the ramp-up phase and growth in other costs (faster y-o-y growth of online services and bank expenses). Personnel costs as a percentage of sales decreased by 24 bps on the back of continued productivity improvements and ongoing automation of business processes. Bank expenses as a percentage of sales increased by 7 bps y-o-y due to growing share of non-cash payments. Advertising expenses decreased by 5 bps y-o-y on lower marketing activities. Rental costs as a percentage of sales increased by 4 bps y-o-y driven by consolidation of Dixy stores predominantly located in the Moscow and Saint-Petersburg regions with higher rent rates, acceleration in store openings and, subsequently, larger number of stores in the ramp-up period as well as higher share of leased selling space. The share of leased selling space increased to 80.7% in 1Q 2022 vs 78.3% a year ago. Despite the above-mentioned factors, rent expense of Magnit's standalone business decreased as a percentage of sales thanks to higher sales density, improved lease terms with landlords and the closure of inefficient stores. Repair and maintenance, packaging and raw materials, utilities, depreciation and tax expenses as a percentage of sales remained broadly flat y-o-y. As a result, EBITDA was RUB 37.7 billion with a 6.9% margin. A decrease of 8 bps y-o-y was driven by consolidation of Dixy business with lower profitability. Net finance costs in 1Q 2022 increased by 43.4% y-o-y to RUB 3.7 billion (but were slightly lower in absolute terms q-o-q) due to the higher cost of debt and total amount of borrowings. The Company increased its total debt by RUB 152.5 billion during the last twelve months, by obtaining bank loans and bond issuance. These supported the Company's accelerated expansion and the acquisition of Dixy last year. As a result, average cost of debt increased y-o-y to 8.8% (284 bps y-o-y and 233 bps q-o-q). 79% of the Company's debt profile is represented by long-term borrowings and bonds with an average maturity of 15 months. In 1Q 2022 the Company reported FX loss of RUB 5.0 billion related to direct import operations because of FX fluctuations. Income tax in 1Q 2022 was RUB 3.0 billion. The effective tax rate stood at 21.6%. As a result, net income in 1Q 2022 remained flat y-o-y and stood at RUB 10.9 billion. Net income margin decreased by74 bps y-o-y to 2.0%. |
Financial Position Highlights (IFRS 16) RUB mln | March 31, 2022 | December 31, 2021 | March 31, 2021 | Inventories | 231,356 | 224,873 | 211,241 | Trade and other receivables | 15,618 | 11,727 | 12,171 | Cash and cash equivalents | 92,402 | 73,399 | 6,575 | Long-term borrowings and loans | 146,868 | 205,287 | 144,022 | Trade and other payables | 239,235 | 240,771 | 163,868 | Short-term loans and borrowings | 173,827 | 65,139 | 24,205 |
12.6 DAYS Y-O-Y OPTIMISATION OF INVENTORIES[11] | Inventories increased by RUB 20.1 billion (+9.5% y-o-y) compared with March 31, 2021 and stood at RUB 231.4 billion on the back of total sales growth of 37.7%. Adjusted for the Dixy acquisition, inventories of the Magnit's standalone business reduced substantially. This was driven by a number of ongoing projects, including the reduction of slow-moving items, assortment harmonization and IT solutions that are aimed at better on-shelf availability and promotion forecasting. Trade and other payables grew by RUB 75.4 billion compared with March 31, 2021 and stood at RUB 239.2 billion, driven by higher sales and improved payment days. Accounts receivables increased by RUB 3.4 billion vs March 31, 2021 and stood at RUB 15.6 billion mainly due to higher sales. |
Debt Composition and Leverage | March 31, 2022 | December 31, 2021 | March 31, 2021 | IAS 17 | | | | Total Debt, RUB billion | 320.7 | 270.4 | 168.2 | Long-Term Debt | 146.9 | 205.3 | 144.0 | Short-Term Debt | 173.8 | 65.1 | 24.2 | Net Debt, RUB billion | 228.3 | 197.0 | 161.7 | Net Debt/EBITDA | 1.6x | 1.5x | 1.4x | IFRS 16 | | | | Net Debt, RUB billion | 682.1 | 653.3 | 522.8 | Net Debt/EBITDA | 3.0x | 3.0x | 2.8x |
1.6x net debt/ebitda as of march 31, 2022 (IAS17) | As at March 31, 2022 Gross Debt increased by RUB 152.5 billion or 90.6% compared to March 31, 2021 and stood at RUB 320.7 billion. Total debt increased by 18.6% or RUB 50.3 billion versus end of the previous quarter. The Company's cash position increased to RUB 92.4 billion as at March 31, 2022 from RUB 6.6 billion as at March 31, 2021. As a result, Net Debt increased by 41.2% y-o-y to RUB 228.3 billion as at March 31, 2021. The Company's debt is fully RUB denominated, matching its revenue structure. The Net Debt to EBITDA ratio was 1.6x as at March 31, 2022 vs 1.4x as at March 31, 2021. Capex in 1Q 2022 increased by 45.2% and stood at RUB 12.1 billion. This was driven by acceleration of the Group's expansion and the store redesign programme (657 store openings on gross basis and 163 redesigns in 1Q 2022 vs 407 and 100 respectively in 1Q 2021). |
FY 2022 Guidance The Company puts its full year 2022 guidance (published on February 4th, 2022) under review due to uncertain market environment. Store opening and redesign programmes as well as capital expenditure targets for the current year may be adjusted in the next periods. Magnit will continue developing its e-commerce services with greater focus on profitability. Updated guidance may be communicated later in the year. Note: - This announcement contains inside information disclosed in accordance with the Market Abuse Regulation effective from July 3, 2016.
- Please note that there may be small variations in calculation of totals, subtotals, and/or percentage change due to rounding of decimals.
| 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 March 31, 2022, Magnit operated 45 distribution centers and 26,605 stores in 3,946 cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the audited IFRS 16 results for FY 2021, Magnit had revenues of RUB 1,856 billion and an EBITDA of RUB 214 billion. Magnit's local shares are listed on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT). |
| 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. |
APPENDIX 1Q 2022 Monthly Sales | January | Change | February | Change | March | Change | Total net retail sales, RUB million | 164,921 | 32.5% | 162,858 | 30.6% | 207,046 | 49.2% | Magnit | 141,754 | 13.9% | 140,332 | 12.5% | 178,661 | 28.7% | Convenience Stores | 112,551 | 16.2% | 110,070 | 14.8% | 135,611 | 26.5% | Supermarkets | 16,211 | 1.6% | 16,420 | 0.3% | 21,121 | 18.7% | Drogerie Stores | 12,095 | 13.0% | 12,990 | 12.7% | 20,842 | 63.0% | Other formats | 897 | -5.8% | 851 | -6.6% | 1,087 | 12.5% | DIXY | 23,167 | n/a | 22,526 | n/a | 28,385 | n/a | Convenience Stores | 22,052 | n/a | 21,431 | n/a | 27,042 | n/a | Supermarkets | 1,115 | n/a | 1,096 | n/a | 1,343 | n/a |
1Q 2022 Store Openings | 1Q 2022 | 1Q 2021 | Change | Change, % | Store Openings (Gross) | 657 | 407 | 250 | 61.4% | Magnit | 649 | 407 | 242 | 59.5% | Convenience Stores | 459 | 241 | 218 | 90.5% | Supermarkets | 0 | 1 | -1 | -100.0% | Drogerie Stores | 190 | 165 | 25 | 15.2% | DIXY | 8 | n/a | n/a | n/a | Convenience Stores | 8 | n/a | n/a | n/a | Supermarkets | 0 | n/a | n/a | n/a | Store Closures | 129 | 71 | 58 | 81.7% | Magnit | 41 | 71 | -30 | -42.3% | Convenience Stores | 29 | 54 | -25 | -46.3% | Supermarkets | 2 | 0 | 2 | n/a | Drogerie Stores | 10 | 17 | -7 | -41.2% | DIXY | 88 | n/a | n/a | n/a | Convenience Stores | 87 | n/a | n/a | n/a | Supermarkets | 1 | n/a | n/a | n/a | Store Openings (Net) | 528 | 336 | 192 | 57.1% | Magnit | 608 | 336 | 272 | 81.0% | Convenience Stores | 430 | 187 | 243 | 129.9% | Supermarkets | -2 | 1 | -3 | -300.0% | Drogerie Stores | 180 | 148 | 32 | 21.6% | DIXY | -80 | n/a | n/a | n/a | Convenience Stores | -79 | n/a | n/a | n/a | Supermarkets | -1 | n/a | n/a | n/a |
[1] LFL calculation base includes Magnit stores, which have been operating for 12 months since its first day of sales. LFL sales growth and average ticket growth are calculated based on sales turnover including VAT. Dixy stores will be added to the LFL panel after full 12 months of operations since consolidation [2] In 2022 the Group adjusted its accounting policy and included associated expenses on goods processing for the production of culinary offerings and other ready meals at its stores into the cost of goods sold. The management of the Group believes that these changes are aimed at appropriate reporting consistent with other market players. The above expenses were previously included in the selling, general and administrative expenses. The Group applied changes retrospectively. [3] Excluding Dixy stores. Dixy stores will be added to the LFL panel after full 12 months of operations after consolidation [4] Convenience Stores include convenience stores and small pilots such as Magnit City and My Price discounters [5] Supermarkets include Magnit Family supermarkets and Magnit Extra superstores [6] Other Formats include pharmacies and stores located at Russian Post offices [7] Supermarkets include Megamart and Minimart stores [9] Net retail sales of the last four quarters divided by the average selling space at the end of the last five quarters (excluding Dixy) [10] LTI - Long-Term Incentive Program [11] Inventory turnover days = ((inventories as of 31.12.2021 + inventories as of 31.03.2022)/2/cost of goods sold for 1Q 2022) x 90
|