MAGNIT PJSC (MGNT)
29-Oct-2021 / 10:30 MSK
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Magnit's Online Sales Share Exceeds One Percent of the Company's TOTAL Revenue
Krasnodar, Russia (October 29, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announces that GMV of the Company's e-commerce services exceeded 1% of the retailer's total revenue during the last week of October.
Magnit's total e-commerce GMV (incl. VAT) was RUB 2.9 billion in the third quarter, contributing more than half to the nine months e-commerce GMV of RUB 5.2 billion. Magnit fulfills now over 50 thousand orders daily.
The average ticket across all online services was c. RUB 969 including VAT. This average ticket was approximately 2.7x higher than in the convenience stores (RUB 356 in 3Q 2021). This was mostly due to a larger number of items per basket. The average ticket within Magnit own delivery service was RUB 1,202.
Magnit has been piloting e-commerce services since the third quarter of 2020. The Company currently runs a number of online delivery projects, including own delivery and partnerships (express delivery, regular delivery, e-pharma, cosmetics and partnerships). The highest sales and the most dynamic growth are shown by the express delivery segment where orders are fulfilled within one hour.
Magnit's e-commerce services today cover over 2,700 offline stores and 15 dark stores in 64 regions and 267 cities, with 66% of the current revenue generated outside Moscow and St. Petersburg. Within the 3rd quarter the Company increased the number of cities covered by 2.5x. By the end of 2021, Magnit plans to have over 4,000 stores across all formats covered by e-commerce services including Magnit's own delivery and partnerships.
Magnit's E-Commerce Director
"In less than a year, GMV of the Company's e-commerce services has reached a tangible level. We show excellent growth rates for the Russian e-commerce market, given that, usually, it takes players up to several years to achieve such a result. We see the growing customer interest in our online projects and keep scaling this service up across the geography. In many regions we have already become e-commerce market leaders. One of our main objectives is to be present throughout the whole customer journey and cater to customer needs "in one click."
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Note to editors
"Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of September 30, 2021, Magnit operated 45 distribution centers and 25,315 stores in 3,840 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts results for 9M 2021, Magnit had revenues of RUB 1,311.5 billion and an EBITDA of RUB 151.4 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB.
This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and/or store openings are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.