Russian food retailer Magnit posted a first half net profit of $140.35 million to IFRS, up seven percent on the same period in 2010, Magnit said on Wednesday.
Magnit's ruble-denominated net profit grew 1.83 percent to 4.017 billion rubles, the company said in a statement.
Magnit's EBITDA in the first half of 2011 rose 42.6 percent to $358.96 million.
Revenues in the first six months of the year increased 58.7 percent year-on-year to $5.471 billion.
The company's gross margin in January-June rose to 22.6 percent from 21.48 percent in 2010, Magnit said.
"In the second quarter the company was focused on efficiency," Magnit chief executive Sergei Galitsky said.
"Negative trends outlined in the beginning of the year that led to lower margins in the first quarter of 2011 were overcome, which is reflected in the growth of EBITDA margin in the second quarter. A slowdown in sales growth rates is due to a significant growth of comparable base since summer 2010. In the second half year, the company will continue to develop in two key directions - increasing market share and improving operating efficiency."
In the first half of 2011 the company added 405 new stores, including 364 convenience stores, 15 hypermarkets and 26 cosmetics stores, and boosted its selling space by 39.51 percent to about 1.6 million square meters. The total store base as of June 30, 2011 reached 4,460 stores, including 4,366 convenience stores, 66 hypermarkets and 28 cosmetics stores.
