Magnit, O’Key Report Strong FY Performances

Russian supermarket chains Magnit and O’Key have recorded strong growth in sales and profit for thei…

Russian supermarket chains Magnit and O’Key have recorded strong growth in sales and profit for their year-end fiscal quarters.

Russia’s largest retailer, Magnit, announced that its Q4 net profit jumped 35% to $362 million with EBITDA growing by 32% to $624 million.

The group said that its record EBITDA margin of 12.5%enabled it to "manoeuvre competitively in the Russian marketplace" and gives it the ability to balance profit margins and sales growth.

Despite a slowdown in December, sales during the quarter soared by 20.2% to $5 billion. The strong performance in the month helped increase full-year revenue up by 29.2% to $18.2 billion. Net profit jumped 38.4% to $1.1 billion.

Meanwhile, Magnit’s competitor O'Key reported revenue for the year rose by 18.7% year-on-year to $4 billion while like-for-like sales were up 8%. However, the group said consumption levels fell in the last month of the year.

The retailer said it expected 2014 sales to grow by 15-16% and like-for-like sales to rise by 5.5-6.5%.