“The shares of “Magnet” fell by 10% after reporting

– The fall of the shares of “Magnet” by Friday evening, reached 10%, the paper collapsed at the end of June last year after the release of weak retailer’s report for the III quarter according to IFRS, proved significantly below expectations, and also against decrease of forecast on revenue.

On the “Moscow stock exchange” 16:39 GMT, the shares of “Magnet” fell to 8492 ruble (-10,1%), while trading volume 7,187 billion.

Net profit of “Magnit” under IFRS in the third quarter of this year fell 53.3% to 6.9 billion rubles. According to the unaudited figures, net income for the 9 months decreased by 32.38% to of 27.67 billion rubles.

The consensus forecast net profit of “Magnit” based on the 10 evaluations was of 12.95 billion, which was a decrease of 12.6% compared to a year ago. The spread of performance analysts was 10.3-15.4 billion rubles.

In addition, the “Magnet” has lowered the forecast of revenue growth for 2017 to 8-10%, whereas the previous forecast was 9-11%.

The company also said plans to open new stores in 2017, “the Magnet” will open 2.1 thousand of stores “at home” without regard to closings (net – 2 thousand plus), 39 hypermarkets and shops “the Magnet family” (21 subject to closures) and 800 cosmetics stores (670 taking into account closures).

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