Russian food retailer Magnit plans to continue its store network expansion, and also posted strong trading results for first half of this year.
The retail chain plans to invest $1.8bn to $2.0bn in 2013, reported Reuters.
Magnit founder and chief executive officer Sergei Galitskiy is reported to have told Reuters that the company’s next year’s capital expenditure programme will include the opening of 600-800 convenience stores, 40-60 large hypermarkets and 25 smaller, Magnit Family hypermarkets.
“This means we will continue to be aggressive on the market,” Galitskiy said.
In the first half of 2012 ended 30 June 2012, Magnit posted a 32.57% growth in revenue to RUB207.6bn ($6.30bn), compared to RUB156.6bn ($4.75bn) in the corresponding period last year.
According to the company the top line growth was a result of increase in selling space as well as due to a 3.5% rise in like-for-like sales.
The company’s EBITDA soared 99.97% from RUB10.28bn ($312.14m) in H1 of 2011 to RUB20.55bn ($623.98m) in H1 of 2012.
Net income posted an increase of 158.97% and totaled RUB10.4bn ($315.78m) in the reporting period, as compared to RUB4.02bn ($112.06m) in the corresponding period a year ago.
In first half of 2012, the retailer added net 413 stores, comprising 262 convenience stores, eight hypermarkets, two ‘Magnit Family’ stores and 141 cosmetics stores.
Cummulatively as of 30 June 2012, Magnit operated 5,722 stores, consisting of 5,268 convenience stores, 98 hypermarkets, five ‘Magnit Family’ stores and 351 cosmetics stores in 1,461 locations of the Russian Federation.