Magnit's production facilities put out record-breaking 360,000 tonnes of goods

Magnit's Production Facilities Put Out Record-Breaking 360,000 Tonnes of Goods

Krasnodar, Russia (January 19, 2022): Production facilities of Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, have set a new record by producing almost 360,000 tonnes of goods in 2021, which is 17% more than in 2020. These products are sold under the Company's private labels in Magnit stores located in 65 Russian regions.

Increased production output was achieved thanks to the introduction of new items to the private label range, improved yields at greenhouse complexes, and ramp-up of production rates at new facilities. Magnit is the only retailer in Russia that operates its own food production facilities - its 17 sites, which are spread across different Russian regions, manufacture about 500 articles.

As of the end of 2021, the Company's production facilities put out nearly 102,000 tonnes of fresh fruits and vegetables (+11%), about 17,800 tonnes of confections (+7%), more than 150,000 tonnes of dry and frozen foods (+ 30%), 46,600 tonnes of flour-based products (in line with 2020). To ensure high availability of socially important goods for its customers, Magnit increased private label sugar packaging capacities fivefold and reached a level of 26,000 tonnes. 

In 2021, the Company's agro-industrial facilities in Krasnodar region focused on tomato production due to import restrictions and increased their output by 16%, as well as introduced 7 new tomato varieties. The best performance was achieved in production of cherry tomatoes (+35%). As a result, the share of tomatoes produced by the Company in sales reached 21.3%. The mushroom complex saw a record-high crop of champignon mushrooms - 7,000 tonnes (+2%), and the share of Magnit's home-grown champignon mushrooms in sales now amounts to 66.7%.

A major portion of the Company's production facilities is located in Krasnodar region - Magnit's home territory. Konditer Kubani (Kuban's Confectioner) and Kubanskiy Kombinat Khleboproduktov (Kuban Cereal Products Plant) - two key factories located in Magnit's Industrial Park - produced nearly 65,000 tonnes of goods. The share of Magnit's private label pasta in sales reached 22.9% in 2021. Konditer Kubani increased its output by almost 7% and introduced 8 new items in fruit jellies, hard candies, truffles, and other segments. Kubanskiy Kombinat Khleboproduktov also expanded its assortment with items like gingerbreads and sugar cookies. To ensure better cost prices, the Company opened a workshop to produce fillings for flour-based confections, which were previously sourced from third parties. 

The Novorossiysk citrus fruit packaging facility, launched in 2020, supplied nearly 12,000 tonnes of packaged products to Magnit stores. Cheese packaging facilities recorded a 17% uplift and put out 36,000 tonnes of goods thanks to the previously launched facilities in Penza and Dmitrov reaching their full capacity.

Overall, Magnit's production facilities in different regions of the country produce vegetables, mushrooms, sweets, cookies and biscuits, pasta, frozen foods (pelmeni, chebureki, blintzes, vareniki), nuts, seeds, water, vinegar, syrups, tea, snacks, breakfast cereals, spices, and others.