Bloomberg News

Magnit Gains for Fifth Day After 87% Rise in Profit

March 29, 2010

OAO Magnit gained for a fifth day in Moscow trading after Russia’s second-largest food retailer said net income rose 87 percent last year as the number of stores increased by two thirds.

The stock advanced as much as 3.3 percent and traded 2.4 percent higher at 2,618.65 rubles at the close in Moscow.

Profit rose to 8.73 billion rubles ($275 million) from 4.67 billion rubles the previous year, the company said today in a regulatory filing. Sales increased 28 percent to 169.9 billion rubles.

“The results support our view that the company is not that dependent on the economic cycle and show that it has been able to control costs effectively and sustain its expansion program despite the crisis,” Mikhail Galkin, an analyst at VTB Capital, wrote in an e-mailed report today.

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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