OREANDA-NEWS. January 4, 2010. JSC "The Seventh Continent" (further referred to as the Company) announces 2008 audited financial results prepared in accordance with International Financial Reporting Standards (IFRS).

The Company's net sales increased from 32.6 billion rubles in 2007 to 39.9 billion rubles. Food and non-food sales accounted for 94.5% of total revenues, marketing rental and other revenues comprised 5.5% of total revenues. 22.5% growth in revenues was driven by the expansion of the Company's store base and 10.4% LFL growth.

For the year 2008 net income of the Company reached 1.2 billion rubles, EBITDA reached 4 billion rubles, with EBITDA margin of 10%.

Gross profit has increased 20% and reached 11.8 billion rubles. Gross profit margin totaled 29.7%. Selling, general and administrative expenses amounted 8.6 billion rubles and grew 23% compared to 6.9 billion rubles in 2007. The largest expense items are labor costs and operational leases.

The Company's operating profit reached 2.8 billion rubles. Operating profit margin reached 7%.

 The delay of Company's IFRS results publication was due to strategy and investment program revision under changing marketing conditions and investment program.