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. Last Updated: 07/27/2016

Sedmoi's Q2 Profit Triples

Supermarket chain Sedmoi Kontinent said second-quarter profit tripled as cost growth slowed and the company booked a gain on land holdings.

Net income jumped to $36.6 million from $12 million in the same period last year, the company said in a statement Monday. Excluding one-time gains, net income was $21 million according to UBS, beating the brokerage's $16 million estimate.

Sales advanced 34 percent to $304 million. Sedmoi recorded a $15.3 million gain in the quarter to recognize the increased value of Moscow development sites it bought for 3.4 billion rubles ($137 million) in March.

"Costs, such as personnel and rent, rose slower than expected," said Natasha Zagvozdina, an analyst at Renaissance Capital. That improved profitability in the first half, she said. Zagvozdina has a "hold" stance on the shares.

Selling, general and administrative expenses as a percentage of revenue totaled 19 percent in the second quarter compared with 21 percent a year earlier, according to the UBS report.

Earnings before interest, tax, depreciation and amortization rose 49 percent to $35.2 million in the quarter. The EBITDA margin, a measure of profitability, widened by 1.1 percentage points to 11.6 percent, the company said.

TPG, a U.S. buyout firm, signed a preliminary accord with Sedmoi owners to buy more than half of the chain, Kommersant reported Sept. 4.