Magnit boosts net profit by 54% in Q3, exceeds forecast
MOSCOW. Oct 24 (Interfax) - OJSC Magnit boosted net profit to International Financial Reporting Standards (IFRS) by 54% year-on-year in Q3 2014 to 14.305 billion rubles, the company said in a statement.
Magnit's results were higher than what was expected by analysts. The consensus-forecast by Interfax predicted the growth of net profit to 13.256 billion rubles.
Magnit's stocks rose during early trading on the Moscow Exchange by 1.8% to 10,335 rubles a share on the good IFRS financial report for Q3 2014, Interfax experts said.
The company's earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 43.18% to 24.058 billion rubles in Q3 and EBITDA margin was 12.42% against 11.64% a year earlier.
These figures were also higher than the consensus-forecast (23.217 billion rubles and 12%, respectively).
Gross profit of the company increased by 37.98% to 58.342 billion rubles in Q3 and gross margin rose to 30.13% from 29.29% a year earlier.
The retailer's revenue rose by 34.15% to 193.628 billion rubles.
For January-September, the company's net profit increased by 42.23% to 33.893 billion rubles. EBITDA rose by 36.49% to 60.608 billion rubles, and EBITDA margin rose to 11.17% against 10.64% in 9M 2013.
Magnit's gross profit for the 9M rose 33.27% to 155.476 billion rubles and gross margin was 28.65% against 27.96% a year earlier.
In dollars, the retailer's net profit in Q3 increased by 39.61% to $395.25 million (the consensus-forecast predicted growth to $366.4 million). EBITDA climbed 21.94% to $1.713 billion, gross profit - by 19.07% to $4.394 billion. Revenue rose 16.22% to $15.335 billion.
During January-September, the company opened 927 stores (net, with account of closures), including 402 stores in Q3. Trading floor space of the retailer at the end of September was 3,327 square meters, which is 17.09% more than a year earlier.
Magnit's like-for-like (LfL) sales in Q3 rose by 17.21% due to a 10.13% increase in the average check and a 6.43% rise in shopping traffic.
Magnit is Russia's largest retailer by sales and the number of stores. At the end of September the company had 9,020 stores (7,891 neighborhood stores, 175 hypermarkets, 68 Magnit Family stores and 886 cosmetics stores.
