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May 3, 2019 www.intellinews.com I Page 3
landscape of the sector are not to be expected any time soon. Magnit will continue to look into small, regional players that fit the formats of Russia's second-largest retailer, Dunning said.
Magnit itself has been struggling to keep up since it lost market leadership to rival X5 Group. The company reported a drop in net IFRS income of 52% year-on-year to RUB3.54bn ($54mn) in 1Q19, with Ebitda decline of 6% y/y and Ebitda margin decline by 110bp to 6%.
"Magnit reported weak 1Q19 IFRS and trading update, significantly missing BCSe and market expectations," BCS Global Markets commented on April 30. The company's revenue in the report- ing quarter came in line with market expecta-
tions, rising 10% y/y, mainly driven by the store expansion program and growth in like-for-like (LFL) sales by 0.6% y/y in 1Q19.
In turn, X5 Group in 1Q19 posted “very strong results, beating expectations on EBITDA by 9% and net income by 21%. Ebitda margin reached solid 7.3% versus expected 6.7% - strong positive,” BCS GM commented on April 25.
The explosive growth of Russia’s supermarket chains has come to an end as organised retail starts to run up against structural constraints. The leading chains have switched from expansion to grab more market share to improving profit- ability and have even begun to close some of their more unprofitable stores.
XVI CIS, Baltic States and Caucasus
Bond Congress
Batumi June 13—14, 2019
Hosted by:
Lead partners:
O cial partners:
Sponsors:
Sponsor of gala dinner:
GROUP OF COMPANIES
With contribution from: