Magnit posts 1H 2011 net income of $140.32 million

Magnit posts 1H 2011 net income of $140.32 million under IFRS
Russian retailer, Magnit, has posted a 1H 2011 net income of $140.32 million under IFRS.

The bottom line is up 6.96 % year on year from the 1H 2010 net result of $131.2 million, with 1H 2011 EBITDA also increasing 42.58 % to $359 million, on the back of revenues climbing 58.68% year on year to $5.5 billion from $3.4 billion a year earlier.

According to the accompanying statement, revenues were up mostly due to an increase in selling space, that was up 39.5% year on year, with 405 new stores having been opened during the reporting period. This was coupled by the growth of like-for-like sales (excl. VAT), up 18.55% year on year.

Sergey Galitskiy, the Company’s CEO, was optimistic commenting on the results and said good dynamics in 2Q 2011 helped to compensate for poor performance in the first three months of the year and demonstrate sound financilas in 1H 2011.

“In the second quarter the Company was focused on efficiency. Negative trends outlined in the beginning of the year and led to the decrease of profitability in 1Q 2011 were overcome which is reflected in the growth of EBITDA margin in 2Q. Slowdown in sales growth rates is explained by significant growth of comparable base since summer 2010.”

Expanding in the market and optimizing its operations will remain in the focus, Galitskiy added.

“ In the second half of the year the Company will continue to develop in two key directions – increasing of market share and improving of operating efficiency.”

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