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. Last Updated: 07/27/2016

Sedmoi Kontinent's Net Profit Drops

Sedmoi Kontinent, the country's fifth-biggest food retailer by sales, said first-quarter profit fell 26 percent after the company brought forward bonus payments and acquired a bank.

Net income dropped to $14.6 million in the three months through March from $19.7 million a year earlier, the company said on its web site Friday.

Sedmoi Kontinent restated year-earlier net income from $19.8 million reported on April 26 of last year, spokesman Leonid Pirogov said.

The slide reflected "an increase in salary costs, which was mainly caused by payouts of bonuses for 2006," the company said. "Previously, bonuses were paid in the second quarter of 2006." The company also raised base salary rates for this year in line with the market.

Profit was also affected by higher costs after the purchase of Bank Finservice in April 2006, the company said. Sedmoi Kontinent bought the lender so it could introduce financial services in its stores.

Sales climbed 29 percent to $289 million.