Magnit reports 38.7% total sales growth (19.7% adjusted for Dixy acquisition) and 13.1% LFL sales growth in 2Q 2022
MAGNIT PJSC (MGNT)
Magnit reports 38.7% total sales growth (19.7% adjusted for Dixy acquisition) and 13.1% LFL sales growth in 2Q 2022
28-Jul-2022 / 09:00 MSK
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Magnit Reports 38.7% total sales growth (19.7% adjusted for dixy acquisition) and 13.1% LFL Sales Growth in 2Q 2022
Krasnodar, Russia (July 28, 2022):Magnit PJSC (MOEX and LSE: MGNT; Magnit, the Company), one of Russia’s leading retailers, announces its 2Q and 1H 2022 operational results.
38.7%
TOTAL REVENUE growth
2Q 2022 Key Operational Highlights
Total revenue increased by 38.7% y-o-y to RUB 588.6 billion. Total revenue adjusted for the Dixy acquisition increased by 19.7%;
Net retail sales reached RUB 579.0 billion increasing 40.0% y-o-y. Net retail sales growth adjusted for the Dixy acquisition was 20.7%;
LFL[1]sales growth of 13.1% driven by 15.0% average ticket growth and 1.6% LFL traffic decline;
Overall sales densities (excluding stores under the Dixy brand) improved by 2.7% q-o-q and 8.1% y-o-y;
13.1%
lfl sales growth
The Company opened 194 stores including 102 discounters on a gross basis or 126 stores on a net basis. As of June 30, 2022 the total store base was 26,731;
Selling space increase of 23 thousand sq. m., bringing total selling space to 9,258 thousand sq. m. (19.5% y-o-y growth);
The Company redesigned 21 stores (18 convenience stores and three supermarkets). As at June 30, 2022, across Magnit brand 79% of convenience stores, 46% of supermarkets and 63% of drogeries are either new or refurbished;
The number of loyalty programme cardholders reached 63.1 million. Company-wide, the proportion of tickets using the loyalty card was 50% with sales penetration of 65%.
E-commerce GMV (incl. VAT) was RUB 7.4 billion;
77%
utilization
of magnit production capacities
in april 2022
Key events in 2Q 2022 and after the Reported Period
Magnit notified JPMorgan Chase Bank, N.A. of termination of the deposit agreement and GDR programme. The Company also submitted requests to the London Stock Exchange to cancel admission of its GDRs to trading on the Main Market, and to the UK Listing Authority to cancel the listing of the GDRs on the Official List. It is anticipated that the delisting and cancellation of admission to trading of the GDRs from the LSE will take effect on 30 August 2022;
Magnit started testing a new ‘Convenience Plus’ format with an expanded assortment and a larger store space;
Magnit’s own production facilities reached record high utilization level - on a y-o-y basis, it increased by 19 percentage points and reached 77% in April 2022;
Magnit and TransContainer reached partnership deal and plan to arrange for delivery of imported products from China and Southeast Asia.
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.
