Magnit’s Profitability Keeps Sagging

According to Kommersant, the profitability of supermarket chain Magnit (which has been the most revenue-successful business in the industry for the last two years) has been going down for two quarters in a row: the company’s EBITDA margin amounted to 6.15% in April-June 2011 against 7% in the second quarter of 2010 and to 8.12% in the entire year 2010.

In the first half of 2011, Magnit’s EBITDA margin came to 6.56% compared with 7.3% in the first six months of 2010. Analysts had expected the margin to amount to 6.57%.

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