Page 152 - RusRPTSept22

• Magnit
Magnit reported good 2Q22 IFRS results. The company delivered good numbers on the back of strong top-line growth.
● Magnit reported its revenue earlier: Rb588.6bn, up 39% y/y, with 19.7% y/y organic revenue increase and remaining 19pp due to Dixy consolidation. Organic growth remained strong amid accelerated food inflation, and was driven by 13% LFL sales increase (+15% ticket, -1.6% traffic) and 9% organic selling space expansion (19% consolidated).
● Revenue growth underpinned 39% y/y increase in IAS-17 EBITDA (to Rb42.2bn; 7.2% margin, around flat y/y), with gross margin also flat y/y.
● Net income (IAS-17) grew 75%, benefitting both from EBITDA increase and FX gain from ruble appreciation.
● FCF (IAS-17) more than tripled y/y to Rb32bn thanks to EBITDA increase, positive impact from working capital vs negative in 2H21. This was despite a 46% y/y increase in cash Capex (to Rb33.5bn; 3% revenue); accrued Capex declined 8% y/y (to Rb23.4bn; 2% revenue) reflecting fewer store openings.
● Magnit LFL sales growth in July-August continued accelerating versus previous months and exceeded the 2Q22 average. Within LFL sales structure, traffic has stabilised and started improving, while average ticket growth remained strong supported by marketing campaigns and in-store improvements.
• Other
The IFRS losses of Russia’s leading consumer electronics and white goods retailer M.Video-Eldorado for the first half of this year widened by a third (31.1%) y/y to RUB3.747bn ($12.4bn), the company reported on August 24. The company’s revenue was up by 1.5% on the year to RUB218.815bn ($3.66bn) and EBITDA was also up by 51.1% to RUB7.002bn ($116.7mn), the company said. Gross merchandise value (GMV) grew by 1.5% to RUB262.177bn with value-added tax.
9.2.7 TMT corporate news
● Yandex
The former head of Russia’s top tech firm Yandex Tigran Khudaverdyan has challenged sanctions against him over the Ukraine war in a European Union court. Khudaverdyan filed a lawsuit on June 7 demanding
152 RUSSIA Country Report September 2022 www.intellinews.com