Sedmoi Kontinent doubles net profit in Q1
MOSCOW. May 17 (Interfax) - Sedmoi Kontinent (Seventh Continent) doubled net profit to 1.3 billion rubles in the first quarter under Russian accounting standards (RAS), the company said in its earning report.
Revenue increased to 10.8 billion rubles from 9.8 billion rubles in the first quarter last year.
Gross profit rose to 2.5 billion rubles from 2.4 billion rubles.
The chain opened one new supermarket in Moscow and a hypermarket in Ivanovo in the three months.
The company strategy includes acquisition of shopping centers under construction. "In future, as a result of acquisition of shopping centers being built in Moscow region and other Russian regions, the company plans to expand the floor space under rent and revenue from it," the statement says.
It was reported earlier that Sedmoi Kontinent plans to purchase floor space for a hypermarket in the Rio shopping and recreation mall in Ivanovo from the Tashir group. The retailer had already obtained clearance for the acquisition from the Federal Antimonopoly Service (FAS).
The company is studying potential sites for hypermarkets in other Russian regions. It is also considering opening supermarkets in cities in the regions, the report says.
Sedmoi Kontinent has 145 stores, including 134 supermarkets and 11 hypermarkets (under the Nash brand) with combined floor space of 186,100 square meters. It opened eight new stores last year, including two hypermarkets.
Sedmoi Kontinent posted a net profit of 1.25 billion rubles in 2010 under RAS on revenue of 40.7 billion rubles.
Alexander Zanadvorov consolidated a stake of about 96% in the company last October with the purchase of 21.5% of shares from the fund of State Duma Deputy Vladimir Gruzdev, according to available information.
"I no longer have anything. They were all sold. We closed in October," Gruzdev told journalists last December. However, Gruzdev was still a member of the board of directors in the first quarter.
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