MAGNIT PJSC (MGNT)
Magnit rents new distribution center in Moscow region
02-Aug-2021 / 11:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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MAGNIT RENTS NEW DISTRIBUTION CENTER IN MOSCOW REGION
Noginsk, Russia (August 02, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading
retailers, announced the launch of a new distribution center in Moscow region, which will be housed in a modern
facility with a total area of around 33,000 sq. m rented by the Company in Noginsk.
Today, there are around 1,900 Magnit stores of different formats in Moscow and Moscow region. They are served by two
distribution centers located in Dmitrov (North) and Kolomna (Southeast) districts. The Noginsk hub will handle
deliveries to around 400 stores in eastern Moscow and Moscow region, with delivery distances of up to 50 km. This will
enable the Company to significantly improve the efficiency of its logistics in the region, as well as to decrease the
prime cost of products and cut delivery times.
Magnit's new distribution center includes ambient storage facilities, integrated chilled storage rooms, a warehouse for
non-food products, an administration and amenities building, and a recycling facility. The hub will process around
1,500 tonnes of incoming products daily, with deliveries coming from both federal suppliers and local manufacturers.
The new warehouse will employ over 1,000 people and serve as a base for around 40 trucks. To ensure proper storage,
picking, and delivery of products, the hub is automated to the maximum possible extent. For example, it employs
automatic ordering and product slotting, and utilizes time slotting to choose the best time for a supplier to arrive
for unloading. To assess the quality of fresh produce (fruits and vegetables), its acceptance is handled remotely: a
team of experts from the headquarters evaluates every item using video cameras and other modern tools. The Company is
currently implementing Pick-by-Voice technology to decrease order picking time and cargo handling costs. Product
storage and dispatch are done using modern warehousing machinery and equipment. In addition to that, the Company
controls the quality of products in real time: the distribution center is fitted with a remote temperature monitoring
system that uses special sensors installed in storage chambers, loading areas, and refrigerated trucks.
Considering the new facility, as well as warehousing capacities previously acquired from DIXY, the Company currently
has 45 distribution centers with a total area of 1,921 thousand sq. m.
«
Fedor
Pavlovsky
Logistics
Director of
Magnit Retail "For us, the Noginsk distribution center has strategic importance. It will enable us to significantly
Chain shorten delivery distances, which will result in better availability and freshness on the shelf. We plan
to ship products to all of our core formats: convenience stores, supermarkets, superstores, as well as
» Magnit Cosmetic stores. We intend to use the Noginsk distribution center to reinforce our presence in
Moscow and Moscow region and create a solid foundation for future development in this geography."
For further information, please contact:
Dina Chistyak
Head Investor Relations
dina_chistyak@magnit.ru
Office: +7 (861) 210 9810 x 15101
Media Inquiries Twitter
press@magnit.ru @MagnitIR
Note to editors
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 June 30, 2021, Magnit operated 39
distribution centers and 22,344 stores (15,348 convenience, 469 supermarkets and 6,527 drogerie stores)
in 3,802 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts results for 1H 2021, Magnit had revenues of
RUB 822.2 billion and an EBITDA of RUB 94.4 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.
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. -----------------------------------------------------------------------------------------------------------------------
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.: 118944
EQS News ID: 1223276
End of Announcement EQS News Service
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August 02, 2021 04:00 ET (08:00 GMT)
