Regulatory Filings • Jun 28, 2018
Regulatory Filings
Open in ViewerOpens in native device viewer
28-Jun-2018 / 13:06 MSK
Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
June 28, 2018
Krasnodar, June 28, 2018: PJSC "Magnit", one of Russia's leading retailers (the "Company", MOEX and LSE: MGNT), announces the start of sales in the test stores located at the post offices inMoscow, Krasnodarand Ryazan regions. Both urban and rural post offices - 12 fixed-site and 1 mobilestores - have been chosen for the pilot project.
The project is being developed under thetrilateralstrategic partnership between the Russian Post, PJSC Magnitand VTBBank (PJSC).
The launch of teststores in the post offices provide Magnit chain with the opportunity to expand the geography ofsales and cover territories where the opening of the traditionalstore is economically unreasonable. The collaboration brings along optimization ofexpenses ofMagnitand the Russian Post. Customers getan additionalserviceand can combinea visit to the post office with shopping.
In the Russian Post's ongoing efforts to enhance the efficiency of the retail stores, the cooperation with one of the Russian leading retailers is the strategic pathway.
All products in the test storesexcluding postal goods have been provided byMagnit. The assortment ofthe fixed-site stores varies from200 to 800 SKUs depending on the space and the location of the post office while the car shop offers about 50 SKUs. In the ruralareas the product mix includes food items, household cleaning products, basic necessities and associated goods while the urban stores offer additional categories beverages, snacks and confectionary. Customers in villages can influence the assortment mix by sharing their feedback on the product representativity.
"There are differentconsumer patterns across the territories. The assortment ofthe test stores isadjusted to the localcustomer needs. Based on the analysis of the internal Magnit data, the unique customer value proposition has been developed for each test store. We are getting closer to our customersand offer greater shopping experience. We believethat the project will besuccessfuland beneficialfor both companies", - Olga Naumova, Magnit CEO, said.
"One ofthe key priorities of our joint project is to test different retailformats in the urban and rural post offices.Additionally, we plan to launch home delivery - customers may choose products fromthecataloguesavailableat thecarriers. We willmakethe decision on thefurther project development before year-end based on theresults ofthe pilotstores", - NikolaiPodguzov, CEO ofthe Russian Post,commented.
| Dina Svishcheva | DeputyDirector, Investor Relations Email:[email protected] Office:+7-861-277-4554 x 15101 |
|---|---|
| MediaInquiries | Media Relations Department [email protected] |
Public Joint Stock Company "Magnit"is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city ofKrasnodar.As ofMarch 31, 2018, Magnit operated 37 distribution centersand 16,625 stores (12,283 convenience, 242 hypermarkets, 210 Magnit Family storesand 3,890 drogeriestores) in 2,764 citiesand towns throughout 7 federalregions ofthe Russian Federation.
In accordance with theaudited IFRS results for 2017, Magnit had revenues ofRUB1,143 billion and anEBITDAofRUB92 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating fromStandard &Poor's ofBB. Measured bymarketcapitalization, Magnit is one ofthelargest retailers inEurope.
Russian Post isafederal post operator, is included in the Russian Federation strategiccompanies list. In accordance with the Russian Post, it includes 42,000 officesacross thecountry and has one ofthe biggeststaff- about 350,000 post workers.
Every year, Russian Post delivers over 2.5 billion lettersand bills (ofthem1 billion lettersare fromstate authorities)and 365 million parcels. Russian Post services about 20 million subscribers in Russia by delivering 1 billion copies of print publications per year. The annual volume of transactions processed byRussian Post is 3.2 trillion rubles (pensions, paymentsand transfers).
Operational revenue of Russian Post in 2017 grew by 8,1% (13,3 bln rubles) up to 178,1 bln rubles (164,8 bln rubles in 2016). Russian Post showed profits in allareas ofits businessactivities.
Actual net profit ofRussian Postexceeded the planned indicators by 28%up to 758 mln rubles.
ISIN: US55953Q2021 Category Code: MSCU TIDM: MGNT LEICode: 2534009KKPTVL99W2Y12 OAM Categories:3.1.Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 5690 EQS News ID: 699715
Actual net profit ofRussian Postexceeded the planned indicators by 28%up to 758 mln rubles.
End ofAnnouncementEQS News Service
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.