Krasnodar, July 23, 2014: OJSC “Magnit”, Russia’s largest retailer (the “Company”; MICEX and LSE: MGNT) announces its unaudited 1H 2014 results prepared in accordance with IFRS¹.

During 1H 2014 the Company added (net) 525 stores (414 convenience stores, 8 hypermarkets, 11 “Magnit Family” stores and 92 cosmetics stores) and increased its selling space by 16.05% in comparison to 1H 2013 from 2,748.09 thousand sq. m. to 3,189.21 thousand sq. m. The total store base as of June 30, 2014 reached 8,618 stores (7,614 convenience stores, 169 hypermarkets, 57 “Magnit Family” stores and 778 cosmetics stores).

Revenue increased by 27.93% YoY from 272,838.04 million RUR in 1H 2013 to 349,047.11 million RUR in 1H 2014. The top line growth was due to an increase in selling space as well as to a 10.63% increase of like-for-like sales.

Gross margin grew from 27.26% in 1H 2013 to 27.83% in 1H 2014. Gross profit increased by 30.59% from 74,377.21 million RUR to 97,131.78 million RUR.

EBITDA increased by 32.39% from 27,603.07 million RUR in 1H 2013 to 36,543.63 million RUR in 1H 2014. EBITDA margin in 1H 2014 amounted to 10.47%, which is 35 b.p. higher than 1H 2013 (10.12%). EBITDA margin in the 2Q of 2014 was 11.71%.

1H 2014 net income increased by 33.78% and amounted to 19,457.13 million RUR vs. 14,544.22 million RUR in 1H 2013. Net income margin for 1H 2014 was 5.57%.

CEO quote: “Enjoy”

— Sergey Galitskiy

¹ Based on management accounts

OJSC "Magnit" announces unaudited 1H 2014 financial results