Sedmoi Kontinent posts 205 mln ruble net loss in Jan-Sept
MOSCOW. Nov 14 (Interfax) - Russian grocery retail chain Sedmoi Kontinent (Seventh Continent) posted a net loss to Russian Accounting Standards (RAS) of 205.1 million rubles in January-September 2011, compared to a profit of 842.6 million rubles in the same period of 2010, the company said in a quarterly report.
Revenue grew 29.3% to 37.3 billion rubles thanks to corporate development, the report says. Gross profit increased from 6.2 billion rubles in January-September 2010 to 8.2 billion.
Sedmoi Kontinent invested considerable funds on opening and upgrading stores so the company posted negative working capital in the nine months of 2011 of minus 21.4 billion rubles.
Sedmoi Kontinent plans to open four new hypermarkets in 2011, the company's CEO, Alexander Ageenkov, told Interfax earlier.
Ageenkov did not give any details about new supermarkets, but he did say one large supermarket would open in Moscow in 2011 and repairs would be carried out at existing stores.
The chain had 145 stores at the end of 2010. The retailer opened just eight new stores last year - six supermarkets and two hypermarkets.
As of September 30 2011, Sedmoi Kontinent had 155 stores.
The retailer manages Sedmoi Kontinent supermarkets and hypermarkets under the brand name Nash. Revenue to International Financial Reporting Standards (IFRS) was 46.3 billion rubles in 2010 and net profit totaled 92.9 million rubles.
Revenue to IFRS in the first half of 2011 totaled 24.8 billion rubles and net profit was 1.8 billion rubles.