rket chains Magnit and O’Key have recorded strong growth in sales and profit for their year-end fiscal quarters.Russia’s largest retailer, Magnit, announced that its Q4 net profit jumped 35% to $362 million with EBITDA growing by 32% to $624 million.
The group said that its record EBITDA margin of 12.5%enabled it to "manoeuvre competitively in the Russian marketplace" and gives it the ability to balance profit margins and sales growth.
Despite a slowdown in December, sales during the quarter soared by 20.2% to $5 billion. The strong performance in the month helped increase full-year revenue up by 29.2% to $18.2 billion. Net profit jumped 38.4% to $1.1 billion.
Meanwhile, Magnit’s competitor O'Key reported revenue for the year rose by 18.7% year-on-year to $4 billion while like-for-like sales were up 8%. However, the group said consumption levels fell in the last month of the year.
The retailer said it expected 2014 sales to grow by 15-16% and like-for-like sales to rise by 5.5-6.5%.
