Magnit : PJSC 'Magnit' Announces Unaudited 1Q 2018 Results
04/20/2018 | 03:05am EDT
MAGNIT PJSC (MGNT)
PJSC 'Magnit' Announces Unaudited 1Q 2018 Results
20-Apr-2018 / 09:00 CET/CEST
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.
PJSC "Magnit" Announces Unaudited 1Q 2018 Results
Krasnodar, Russia (April 20, 2018): Magnit PJSC, one of Russia's leading retailers (MOEX and LSE: MGNT)announces its unaudited1Q 2018 results prepared in accordance with IFRS.
During 1Q 2018 Magnitadded (net) 275 stores. The total store base as of March 31, 2018 reached 16,625 stores (12,283 convenience stores, 242 hypermarkets, 210 "Magnit Family" stores and 3,890drogerie stores). Selling space increased by 13.24% in comparison to 1Q 2017 from 5.15 million sq. m. to 5.83 million sq. m.
Revenue increased by8.08% from 266.98billion RUR in1Q 2017 to 288.56billion RUR in 1Q 2018.
Gross Profit increased from 69.82 billion RUR in1Q 2017 to 71.90billion RUR in 1Q 2018. Gross Margin in 1Q 2018 was 24.92%.
EBITDA in 1Q 2018was 20.50 billion RUR. EBITDA margin in1Q 2018 was 7.10%.
Net Income in 1Q 2018was7.41 billion RUR. Net Income Margin in1Q 2018 was 2.57%.
According to Rosstat, CPI for the last 12M (April 2017 -March 2018) was 2.4% compared to 4.3% for the same period in the previous year.
According to Rosstat, food inflation for the last 12M (April 2017 -March 2018) was 1.3% Y-o-Y vs 3.5% forthe same period in the previous year.
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 March 31, 2018, Magnit operated 37 distribution centers and 16,625 stores (12,283 convenience, 242 hypermarkets, 210 Magnit Family stores and 3,890 drogerie stores) in 2,764 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS results for 2017, Magnit had revenues of RUB 1,143 billion and an EBITDA of RUB 92 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. Measured by market capitalization, Magnit is one of the largest retailers in Europe.
 Based on the average exchange rate for January 2018 - 56.7875 RUB per 1 USD, February 2018 - 56.8124 RUB per 1 USD, March 2018 - 57.0344 RUB per 1 USD
LFL calculation base includes stores (all formats), which have been opened 12 months prior to the last month of the reporting period. i.e. by March 1, 2017.
 Starting in 2018 Magnit has revised its accounting policy and now includes Handling Costs into the Cost of Goods Sold (COGS) section of the Income Statement. Previously, Magnit included Handling Costs into the Selling, General and Administrative (SG&A) section. For the sake of comparison, Magnit has applied the same accounting change for Q1 2017 Gross Profit and Gross Margin figures in this press release.
Based on the average exchange rate for 1Q 2018 - 56.8803 RUB per 1 USD, 1Q 2017 - 58.8366 RUB per 1 USD
3.1. Additional regulated information required to be disclosed under the laws of a Member State