Magnit today (1 April) posted a 93% jump in annual profits for 2008 and the Russian grocery retailer predicted its profits would improve in the coming year despite the downturn.
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The company, which is listed on the London stock exchange, said that net profit for the 12-month period increased to US$187.9m last year, from $97.4m in 2007.
Magnit said that earnings before interest, taxation, depreciation and amortisation rose 83% to $401.67m. Gross margin increased to 21.7%, from 19.9%.
The group was also unveiled a 45% jump in revenue, which increased to $5.35bn, up from $3.68bn, thanks to both new store openings and same-store sales gains.
Magnit was also upbeat on its outlook for the coming year, predicting EBITDA margins of 8-8.5%, up from previous guidance of 7.5%.
Store traffic rose 1.8% in January and February, while average per visit spend was up 13%, Magnit said.
The company operates at the discount end of the grocery retail sector and does not operate a large number of stores in the highly competitive Moscow market.
Magnit shares gained 7.95%, climbing to $6.24 at 3.50pm (GMT).
