Investment case

Market potential

We offer exposure to a sizeable market with potential for further organic expansion and consolidation.

Sizeable market with increasing penetration of modern food retail and opportunities for organic expansion

Growing market share of major players

Fragmented market with high potential for further consolidation

New niches and growth opportunities coming along in the consistently growing e-grocery segment


Share of modern and traditional retail in 2022, %
Source: Euromonitor, 2022
Share of top 5 players in grocery retail in 2022, %
Leading player

Magnit is one of the largest food retailers in Russia with well-developed infrastructure, strong customer base, a recognisable brand, and a growing market share.

  • Multiformat offering with four core formats covering a range of shopping missions in grocery, drogerie and pharma segments
Food
Food
Drogerie
Drogerie
Pharma
Pharma
  • Wide coverage:
27,405
stores
4,068
cities and townships
7
federal districts
12.8 %
market share in food retail sales
67
regions of operation
68 mln
loyalty card holders
Serving customers in all highly populated Russian regions
  • Well-developed supply chain
44
distribution centres and one of the largest own truck fleets in Russia
  • The only vertically integrated retailer in Russia
20
own production facilities and agricultural complexes
Magnit’s sales growth
Source: Federal State Statistics Service, Magnit data
Growth ambitions

On track to speed up profitable return-driven growth leading to further market share gains.

Acceleration of value-accretive organic growth

Smart expansion implying high profitability targets for new openings

Selective small to mid-size value-accretive M&As to strengthen market positions

Adherence to sustaining high return requirements for new projects

Store network redesign programme to improve sales density

Building a leading e-grocery platform to account for over 5% of total turnover

Proactive forays into adjacent value-accretive niches

+5.3 %
selling space YoY growth in 2022
+9 %
in-house produce YoY growth in 2022
Амбиции роста
Efficiency gains

We have great potential for further business development.

Further CVPCustomer value proposition. improvement to drive sales density and profitability

CVP initiatives to enhance consumers’ perception and experience

Increase in sales density partly through redesign acceleration and process improvements

Extension of consumer offering complimentary to core business

Повышение эффективности
Dividends

Strong capital discipline with a focus on returns in all investment decisions with a view to generating substantial dividend payments.

Focus on the quality of new store openings as a way to maximise ROI

Keeping Net Debt / EBITDA at a comfortable level

Clear plan to improve working capital with a focus on stock days optimisation

Value accretion for shareholders to deliver consistently solid dividends

2.1x
leverage (IFRS 16) as at 31 December 2022
Magnit’s dividend yield in 2008–2021
Source: Magnit data
Дивиденты