MAGNIT PJSC : Magnit and Delivery Club Launch Express Delivery of Cosmetics

 
 MAGNIT PJSC (MGNT) 
MAGNIT PJSC: Magnit and Delivery Club Launch Express Delivery of Cosmetics 
 
07-Dec-2020 / 09:59 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
Press-release | Krasnodar | December 7, 2020. 
 
               Magnit and Delivery Club Launch Express Delivery of Cosmetics 
 
Krasnodar, Russia (December 7, 2020): Magnit PJSC (MOEX and LSE: MGNT; the 
Company), one of Russia's leading retailers, and Delivery Club have launched 
a service for express delivery from Magnit Cosmetic stores. Delivery Club 
couriers are already delivering goods from Magnit Cosmetic stores in 
Krasnodar and Ekaterinburg. In 2021, the service will also become available 
in Moscow, Saint-Petersburg, and all major cities where Magnit operates. 
Delivery time is 30-45 minutes. There is no minimum order, and the delivery 
fee varies depending on the order amount: the larger it is, the cheaper the 
delivery, down to free-of-charge when ordering from 699 rubles. 
 
       Delivery Club users will have access to around 6,600 SKUs from Magnit 
 Cosmetic stores, namely care and decorative cosmetics, household chemicals, 
    as well as home care products. The goods will be delivered in compliance 
        with all of the requirements of Russian legislation; to ensure that, 
     Delivery Club has developed special sealed bags which can be carried by 
                         delivery agents both in and out of their backpacks. 
 
         Magnit Cosmetic became Delivery Club's first specialized partner in 
 cosmetics delivery. Previously, users could only get this category from the 
                      assortment of grocery stores connected to the service. 
 
 For Magnit, this also represents the first step in developing delivery from 
   its drogerie format. Prior to this partnership, no delivery was available 
                                for products sold at Magnit Cosmetic stores. 
 
 "Based on the results of our work in the field of food delivery, we can see 
  that there is also a great demand from consumers for complementary product 
   categories. Most of these are present in grocery chains, but the interest 
    for such products actually spans beyond what those chains can offer. For 
  this very reason, we've launched pet products delivery in August 2020, and 
are now launching cosmetics delivery as well. Our partnership with Magnit in 
      e-grocery demonstrates strong performance, and so we're happy to start 
     developing another delivery segment together. Delivery of products from 
                  Magnit Cosmetic is a new product on the Russian e-commerce 
    market-previously, it was impossible to get cosmetics from a specialized 
       store in just half an hour,"- Guvenc Donmez, Chief Executive Foodtech 
       Officer at O2O Holding (joint venture of Mail.ru Group and Sberbank). 
 
"Magnit Cosmetic is one of our most successful and in-demand formats. We are 
     happy that now, in a partnership with Delivery Club, we will be able to 
offer our customers a new convenient service that will bring Magnit Cosmetic 
  even closer to consumers and reinforce its position on the market. Express 
delivery of care and decorative cosmetics supplemented by a broad assortment 
   of home care products and household chemicals is a service that currently 
 has no match in Russian retail, and so we're certain that this project will 
  be successful. Magnit will continue to build up its presence in e-commerce 
   to create a convenient ecosystem of digital and offline offerings for our 
        customers,"-comments Florian Jansen, Magnit Deputy CEO and Executive 
                                                                   Director. 
 
    Magnit Cosmetic is the fastest growing format of the Company. Net retail 
sales of the format grew by 24% in 9M 2020 and stood at 97.3 billion rubles, 
LFL sales growth was 10.3%. The share of drogerie format of the total Magnit 
retail sales reached 9.4% in 3Q 2020. At the end of 3Q 2020, Magnit operated 
                 about 6,000 Magnit Cosmetic stores in 65 regions of Russia. 
 
For further information, please contact: 
 
Dmitry Kovalenko 
 
Director for Investor Relations 
 
Email: [e-mail] 
 
Office: [phone] 
 
Dina Chistyak 
 
Director for Investor Relations 
 
Email: [e-mail] 
 
Office: [phone] x 15101 
 
Media Inquiries 
 
Media Relations Department 
 
Email: [e-mail] 
 
Note to editors about Magnit: 
 
   Public Joint Stock Company "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, 2020, Magnit operated 38 distribution 
   centres and 21,154 stores (14,699 convenience, 469 supermarkets and 5,986 
  drogerie stores) in 3,819 cities and towns throughout 7 federal regions of 
                                                     the Russian Federation. 
 
 In accordance with the unaudited IFRS 16 management accounts results for 1H 
    2020, Magnit had revenues of RUB 763.4 billion and an EBITDA of RUB 86.9 
     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. 
 
                                            Information about Delivery Club: 
 
    Delivery Club is the market leader in the delivery of ready-made food in 
 Russia. The service fulfills over 5.5 million orders monthly. At the end of 
2019, Delivery Club's revenue amounted to 4.46 billion rubles; at the end of 
        the 3 quarters of 2020, it was over 7 billion rubles. More than 30.8 
thousand eateries in 256 cities across the country are connected to Delivery 
       Club. In more than 100 cities, Delivery Club users can order not only 
    ready-made food from restaurants, but also delivery of food products and 
   everyday goods. Delivery Club is also making developments in the field of 
              takeout ordering. In 2019, Delivery Club became part of an O2O 
    (online-to-offline) platform in the food and transport markets, which is 
                            being established by Mail.ru Group and Sberbank. 
 
Forward-looking statements: 
 
 This document contains forward-looking statements that may or may not prove 
  accurate. For example, statements regarding expected sales growth rate and 
   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.:   89103 
EQS News ID:    1153088 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

December 07, 2020 01:59 ET (06:59 GMT)