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UPDATE 1-Russia's Magnit trims sales, raises store number guidance
July 21, 2017 / 1:37 PM / a month ago

UPDATE 1-Russia's Magnit trims sales, raises store number guidance

(Adds guidance update)

MOSCOW, July 21 (Reuters) - Russia's second biggest food retailer Magnit lowered its 2017 sales forecast on Friday after a slowdown in the first half but said it would open more low-cost convenience stores than planned previously.

* The company now expects sales growth of 9-11 percent, down from its forecast in January of 9-13 percent growth.

* Plans to open more than 2,000 convenience stores, raising its guidance from 1,700, Magnit said.

* First-half 2017 net sales were up 6.4 percent, after a 13 percent growth rate in 2016 as a whole.

* Sales rose 8.2 percent year on year in the second quarter to 288 billion roubles ($4.9 billion), after a 4.6 percent rise in the first quarter.

* Quarterly net profit decreased to 13.25 billion roubles from 17.9 billion roubles in the second quarter of 2016.

* Earnings before interest, taxation, depreciation and amortisation (EBITDA) fell 13 percent to 27.8 billion roubles.

* The EBITDA margin slid to 9.64 percent from 11.95 percent in Q2 2016.

* Like-for-like sales were down 1.42 percent year on year, after a decrease of 4.77 percent in January-March.

* The average like-for-like ticket was up 2.17 percent year on year while like-for-like traffic fell 3.51 percent.

* The company opened 535 new stores in April-June, bringing its total number of outlets to 14,844. Source text for Eikon: Further company coverage: ($1 = 58.9486 roubles) (Reporting by Moscow Newsroom; Editing by Keith Weir)

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