Krasnodar, April 22, 2015: PJSC “Magnit”, Russia’s largest food retailer (the “Company”; MOEX and LSE: MGNT) announces its unaudited 1Q 2015 results prepared in accordance with IFRS¹.

During 1Q 2015 the Company added (net) 409 stores (237 convenience stores, 6 hypermarkets, 7 “Magnit Family” stores and 159 drogerie stores) and increased its selling space by 21.64% in comparison to 1Q 2014 from 3,068.61 thousand sq. m. to 3,732.73 thousand sq. m. The total store base as of March 31, 2015 reached 10,120 stores (8,581 convenience stores, 196 hypermarkets, 104 “Magnit Family” stores and 1,239 drogerie stores).

Revenue increased by 33.40% YoY from 163,990.13 million RUR in 1Q 2014 to 218,756.26 million RUR in 1Q 2015. The top line growth was due to an increase in selling space as well as to a 14.53% increase of like-for-like sales.

Gross profit increased by 32.35% from 44,665.95 million RUR to 59,116.27 million RUR. Gross margin in 1Q 2015 amounted to 27.02%.

EBITDA increased by 37.07% from 14,879.50 million RUR in 1Q 2014 to 20,395.23 million RUR in 1Q 2015. EBITDA margin in the 1Q of 2015 was 9.32%, which is 25 b. p. higher than 1Q 2014 (9.07%).

1Q 2015 net income increased by 35.63% and amounted to 9,477.84 million RUR vs. 6,988.23 million RUR in 1Q 2014. Net income margin for 1Q 2015 was 4.33%.

¹ Based on management accounts

PJSC "Magnit" announces unaudited 1Q 2015 financial results