Krasnodar (October 21, 2016): Magnit PJSC, one of Russia’s leading retailers (the “Company”; MOEX and LSE: MGNT) announces its unaudited 9M 2016 results prepared in accordance with IFRS¹.

During 9M 2016 the Company added (net) 1,275 stores (544 convenience stores, 9 hypermarkets, 24 “Magnit Family” stores and 698 drogerie stores) and increased its selling space by 16.13% in comparison to 9M 2015 from 4,154.99 thousand sq. m. to 4,825.39 thousand sq. m. The total store base as of September 30, 2016 reached 13,364 stores (10,138 convenience stores, 228 hypermarkets, 179 “Magnit Family” stores and 2,819 drogerie stores).

Revenue increased by 14.44% YoY from 690,442.57 million RUR in 9M 2015 to 790,136.88 million RUR in 9M 2016.

Gross profit increased by 11.29% from 195,375.92 million RUR in 9M 2015 to 217,431.15 million RUR in 9M 2016. Gross margin in 9M 2016 amounted to 27.52%.

EBITDA increased from 75,112.79 million RUR in 9M 2015 to 80,253.85 million RUR in 9M 2016. EBITDA margin in the 9M of 2016 was 10.16%. EBITDA margin in the 3Q of 2016 was 10.67%.

9M 2016 net income stood at 40,923.61 million RUR. Net income margin for 9M 2016 was 5.18%.

According to Rosstat, general inflation in September 2016 stood at 0.2% compared to 0.6% in September 2015, in 9M 2016 it was 4.1% compared to 10.4% in 9M 2015.

Food inflation in September 2016 was −0.1% compared to 0.4% in September 2015, in 9M 2016 it was 2.4% compared to 10.2% in 9M 2015.

¹ Based on management accounts

PJSC "Magnit" announces unaudited 9M 2016 financial results