Sedmoi Kontinent Posts 47% Net Profit Increase

VedomostiSedmoi Kontinent said its net revenues increased to $1.27 billion in 2007.
Sedmoi Kontinent, Moscow's largest grocery chain, posted a 47 percent rise in 2007 net profit on Tuesday, while net revenues rose 33 percent on expansion of store outlets and higher like-for-like sales.

The company said in a statement that its net profit, calculated under international financial reporting standards, rose to $99.2 million last year, while net revenues increased to $1.27 billion. Like-for-like sales were up 17.8 percent.

"We consider the financial results of the last year and the prospects for the company positive," Sedmoi Kontinent's general director, Galina Ilyashenko, said in the statement.

"[Our] expanded portfolio of hypermarket-scale projects gives us confidence that the company can develop quickly as one of the leaders in this promising segment," she added.

The firm said earnings before interest, taxation, depreciation and amortization rose 36 percent to $145 million in 2007, while the EBITDA margin increased to 11.4 percent from 11.2 percent in 2006.

The net margin rose to 7.8 percent in 2007 from 7.1 percent the previous year.

The retailer said it operated 133 stores, including nine hypermarkets, in Russia, most of them in Moscow and the Moscow region, as of the end of March 2008. It operated 123 stores at the start of 2007.

Sedmoi Kontinent's stock closed up 2.3 percent at 555.05 rubles ($23.71) on the MICEX bourse, ahead of the MICEX Index, which rose 1.4 percent on the day.