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Russian retailer Magnit says third-quarter net profit halves year-on-year
October 20, 2017 / 8:06 AM / a month ago

Russian retailer Magnit says third-quarter net profit halves year-on-year

MOSCOW (Reuters) - Russia’s second-biggest food retailer Magnit (MGNT.MM) said on Friday its third-quarter net profit more than halved year-on-year, sending its shares down more than 5 percent.

The company, which has more than 15,000 low-cost stores, said net profit fell to 6.9 billion roubles ($120 million) from 14.8 billion a year ago.

It gave no reason for the decline but analysts have predicted Magnit would cut prices to attract cash-strapped consumers, which would hurt its profits and margins.

Core profit, or earnings before interest, taxation, depreciation and amortisation (EBITDA), was down 28 percent to 20.7 billion roubles and an EBITDA margin slipped to 7.2 percent from 10.7 percent in the third quarter last year.

Net sales were up 6.5 percent at 286 billion roubles while like-for-like sales declined 2.5 percent year-on-year, Magnit said in a statement.

Shares in Magnit fell 5 percent in early trade in Moscow.

($1 = 57.5248 roubles)

Reporting by Maria Kiselyova; Editing by Dmitry Solovyov

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