OREANDA-NEWS. OJSC “Magnit”, Russia’s largest retailer (the “Company”, MICEX and LSE: MGNT), is pleased to announce its unaudited 1Q 2013 financial results prepared in accordance with IFRS.

During 1Q 2013 the Company added (net) 191 stores (163 convenience stores, 6 hypermarkets, 1 “Magnit Family” and 21 cosmetics stores) and increased its selling space by 29.88% in comparison to 1Q 2012 from 2,024.90 thousand sq. m. to 2,629.88 thousand sq. m. The total store base as of March 31, 2013 reached 7,075 stores (6,209 convenience stores, 132 hypermarkets, 21 “Magnit Family” and 713 cosmetics stores).

Revenue in rubles increased by 30.43% YoY from 100,617.96 million RUR in 1Q 2012 to 131,239.91 million RUR in 1Q 2013. The top line growth was due to an increase in selling space as well as to a 4.83% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 29.79%: from USD 3,324.65 million to USD 4,315.09 million.

Gross margin grew from 25.28% in 1Q 2012 to 26.72% in 1Q 2013. Gross profit in rubles increased by 37.86% from 25,438.21 million RUR (USD 840.54 million) to 35,070.35 million RUR (USD 1,153.09 million).

EBITDA increased by 25.78% from 9,710.48 million RUR (USD 320.86 million) in 1Q 2012 to 12,214.09 million RUR (USD 401.59 million) in 1Q 2013. EBITDA margin in 1Q 2013 amounted to 9.31%.

1Q 2013 net income increased by 28.99% and amounted to 6,156.16 million RUR (USD 202.41 million) vs. 4,772.44 million RUR (USD 157.69 million) in 1Q 2012.

As has been noted previously, the month of February 2012 occurred during a "leap year" and thus, there were 29 days (i.e. an extra day). February 2013, on the other hand, occurred during a "normal year" in which there were only 28 days.

This very same "leap year" effect/adjustment should also be calculated when one makes the comparison between 1Q 2012 numbers vs. 1Q 2013 numbers.

Therefore, in order to fairly compare the 1Q 2012 results to the 1Q 2011 results an amount of 1.47% should be subtracted for the 1Q 2012, which would then equal 32.60%. To compare the 1Q 2013 results with the 1Q 2012 results correctly, an amount of 1.45% should be added, which would then equal 31.88%.

Sergey Galitskiy, the Company’s CEO, provided the following comments on the published results:

“ Last year was the strongest year in the Company’s history. However, comparing 1Q 2013 results y-o-y we see that most of the changes are due to foreign exchange difference, which speaks for the sustainability of the Company’s operating efficiency”.

1Q 2013 Key Operating Results

1Q 2013

1Q 2012

Growth Rate

Number of opened stores, NET

191

157

n/a

convenience stores

163

98

n/a

hypermarkets

6

1

n/a

magnit family

1

2

n/a

cosmetics stores

21

56

n/a

Total number of stores

7,075

5,466

n/a

convenience stores

6,209

5,104

n/a

hypermarkets

132

91

n/a

magnit family

21

5

n/a

cosmetics stores

713

266

n/a

Selling space, thousand sq. m.

2,629.88

2,024.90

29.88%

convenience stores

2,030.20

1,673.48

21.32%

hypermarkets

407.46

282.10

44.44%

magnit family

25.81

6.20

n/a

cosmetics stores

166.41

63.12

n/a

Number of customers, million

563.01

462.04

21.85%

convenience stores

505.46

427.82

18.15%

hypermarkets

42.13

29.39

43.32%

magnit family

5.58

0.87

n/a

cosmetics stores

9.85

3.96

n/a

LFL results

LFL growth 1Q 2013 - 1Q 2012

Convenience

stores

Hypermarkets

Total

Average ticket (excluding VAT), RUR

5.31%

3.19%

5.42%

Traffic

(0.80)%

3.77%

(0.55)%

Revenue, RUR

4.46%

7.08%

4.83%

1Q 2013 Key Financial Results

1Q 2013

1Q 2012

Growth Rate

Net sales, mn RUR

131,239.91

100,617.96

30.43%

convenience stores

104,145.23

83,658.79

24.49%

hypermarkets

22,670.89

15,680.27

44.58%

Magnit Family

1,935.79

301.57

n/a

cosmetics stores

2,465.97

952.80

158.81%

wholesale

22.04

24.54

(10.17%)

Net sales, mn USD

4,315.09

3,324.65

29.79%

convenience stores

3,424.23

2,764.28

23.87%

hypermarkets

745.40

518.11

43.87%

Magnit Family

63.65

9.96

n/a

cosmetics stores

81.08

31.48

157.54%

wholesale

0.72

0.81

(10.61%)

Gross profit, mn RUR

35,070.35

25,438.21

37.86%

Gross profit, mn USD

1,153.09

840.54

37.18%

Gross margin, %

26.72%

25.28%

n/a

EBITDAR, mn RUR

15,541.62

11,937.34

30.19%

EBITDAR, mn USD

511.00

394.44

29.55%

EBITDAR margin, %

11.84%

11.86%

n/a

EBITDA, mn RUR

12,214.09

9,710.48

25.78%

EBITDA, mn USD

401.59

320.86

25.16%

EBITDA margin, %

9.31%

9.65%

n/a

EBIT, mn RUR

8,969.84

7,134.03

25.73%

EBIT, mn USD

294.92

235.72

25.11%

EBIT margin, %

6.83%

7.09%

n/a

Net profit, mn RUR

6,156.16

4,772.44

28.99%

Net profit, mn USD

202.41

157.69

28.36%

Net profit margin, %

4.69%

4.74%

n/a

Note: net revenue in USD terms is calculated using the daily exchange rate.