Retailer Magnit said Tuesday that its first-half net profit rose 1.17 percent year on year in ruble terms to 3.95 billion rubles, on an aggressive pricing policy.
In dollar terms, profit rose to $131.2 million from $117.9 million a year ago, the company said in a statement.
Revenue in rubles increased 31.8 percent to 103.66 billion rubles, helped by a 4.93 percent rise of like-for-like sales and increase in selling space.
Earnings before income, taxes, depreciation and amortization increased by 2.1 percent to 7.57 billion.
"Positive like-for-like traffic and average ticket trends instill optimism and confidence in the targeted sales growth of 35 percent in ruble terms at the year-end," Sergei Galitsky, the company's chief executive, said in a statement. "At that, expectations of EBITDA margin for 2010 lay within the range of 0.8 to 8.5 percent."
The country's second-largest food retailer said it would increase spending to accelerate store openings as the country’s economy recovers from the worst slump on record.
Capital spending may reach $1.3 billion this year, 30 percent more than the company forecast in March, as it seeks to open almost two new stores a day, Magnit said. The company plans to open 650 stores and 30 hypermarkets in 2010.
Magnit added 260 stores and four hypermarkets in the first half, pushing its store count to 3,492.
(Reuters, Bloomberg)
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.