Revenues at grocery chain Magnit rose by nearly a third in 2009 as the company’s rapid expansion helped it avoid a decline in sales amid the economic crisis.
Sales rose 28.1 percent in ruble terms over the previous 12 months to 169.6 billion rubles ($5.77 billion at the current exchange rate), Magnit said in a statement Tuesday.
Magnit’s London-traded shares closed down 3 percent Tuesday.
The retailer opened 646 new stores in 2009 against 385 in 2008, bringing its total to 3,228 outlets, more than any other Russian retail chain.
The annual growth rate marks a sharp slowdown from a year ago, however, when full-year revenue rose by 42 percent to 132.4 billion rubles. The company struggled with low consumer confidence and spending, as well as deflation.
“Overall, we matched our forecast. Our rates of sales growth slowed, reflecting the broad economic situation in the country,” spokesman Oleg Goncharov said.
At the start of 2009, chief executive Sergei Galitsky forecast 35 percent to 38 percent revenue growth for 2009, but later in the year he revised his outlook to 28 percent to 32 percent.
Dollar revenue rose 0.4 percent over the same period to $5.3 billion, Magnit said.
Net retail sales in December 2009 alone rose 22.9 percent year on year in ruble terms to 19.2 billion rubles. In dollar terms, December revenue rose 15.4 percent to $640 million.
For 2010, Magnit expects revenues to rise by up to 25 percent in ruble terms and plans to invest a record $1 billion.
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