Magnit tallies up New Year sales

Magnit Tallies Up New Year Sales

Krasnodar, Russia (January 13, 2022): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of the leading Russian retailers, has summarized its sales[1] for the period preceding the New Year. From December 17 to December 31, 2021, the Company's total revenue grew by 30.2% (+13.2% without Dixy) year-over-year, with LFL sales increasing by 7.4%, mostly due to the growth of the LFL average ticket. In total, during the last two weeks of 2021, customers made over 213 million purchases in Magnit.

The average "New Year" ticket in Magnit during the reporting period amounted to 513.1 rubles, which is 9.5% higher versus the previous year. The highest impact in the pre-New Year period traditionally came from December 30 and 31. These days accounted for some 21% of Magnit's sales made over the last two weeks of the year. Furthermore, over 25% of the entire volume of cosmetics gift sets, perfumes, carbonated drinks, and vodka bought during the last week of the year, as well as 15% of boxed chocolate sweets and mandarin oranges, were sold on the last day of 2021. The categories that demonstrated the best sales dynamics while Russians were preparing for the New Year celebration were hard and soft cheeses (+12% and +20% respectively), New Year confectionary gifts (+30%), and New Year products (+30%).

During the pre-New Year period, the Company sold around 30 million bottles of champagne and wine, with Russian brands accounting for 78% of those sales. During the last two weeks of the year, Magnit customers bought 19 thousand tonnes of mandarin oranges, around 15 million boxes of chocolate sweets, 18.5 million packs of salads and greens, 20 thousand tonnes of poultry, and 1.3 million cans and jars of red caviar. The Company saw a significant uplift in turkey and duck meat, which grew by 103%. Mayonnaise, the essential New Year sauce, was again very popular with consumers, with 14.5 million packs sold in total. In the lead-up to the New Year, Magnit also sold 7 million kilograms of cucumbers and tomatoes. Sales of ready-to-eat products in the Company's big boxes increased by 13%; overall, Magnit sold 690 tonnes of salads, 235 tonnes of grilled products, as well as other dishes.

In the first ten days of 2022, the Company's revenue increased by 33.2% (+14.8% without Dixy) year-over-year on the back of the 8.4% increase of LFL sales. The Company attributes the uplift mostly to the improved customer value proposition as well as increased demand for food products and ready-to-eat meals driven by the COVID-related restrictions.

[1] All operational figures are based on management accounts. Rates of increase of LFL sales and average ticket are calculated based on revenue with VAT.