Information  X 
Enter a valid email address

MAGNIT PJSC (MGNT)

  Print   

Monday 02 August, 2021

MAGNIT PJSC

Magnit rents new distribution center in Moscow region

MAGNIT PJSC (MGNT)
Magnit rents new distribution center in Moscow region

02-Aug-2021 / 11:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

 

MAGNIT RENTS NEW DISTRIBUTION CENTER IN MOSCOW REGION

 

Noginsk, Russia (August 02, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announced the launch of a new distribution center in Moscow region, which will be housed in a modern facility with a total area of around 33,000 sq. m rented by the Company in Noginsk.

Today, there are around 1,900 Magnit stores of different formats in Moscow and Moscow region. They are served by two distribution centers located in Dmitrov (North) and Kolomna (Southeast) districts. The Noginsk hub will handle deliveries to around 400 stores in eastern Moscow and Moscow region, with delivery distances of up to 50 km. This will enable the Company to significantly improve the efficiency of its logistics in the region, as well as to decrease the prime cost of products and cut delivery times.

Magnit's new distribution center includes ambient storage facilities, integrated chilled storage rooms, a warehouse for non-food products, an administration and amenities building, and a recycling facility. The hub will process around 1,500 tonnes of incoming products daily, with deliveries coming from both federal suppliers and local manufacturers.

The new warehouse will employ over 1,000 people and serve as a base for around 40 trucks. To ensure proper storage, picking, and delivery of products, the hub is automated to the maximum possible extent. For example, it employs automatic ordering and product slotting, and utilizes time slotting to choose the best time for a supplier to arrive for unloading. To assess the quality of fresh produce (fruits and vegetables), its acceptance is handled remotely: a team of experts from the headquarters evaluates every item using video cameras and other modern tools. The Company is currently implementing Pick-by-Voice technology to decrease order picking time and cargo handling costs. Product storage and dispatch are done using modern warehousing machinery and equipment. In addition to that, the Company controls the quality of products in real time: the distribution center is fitted with a remote temperature monitoring system that uses special sensors installed in storage chambers, loading areas, and refrigerated trucks.

Considering the new facility, as well as warehousing capacities previously acquired from DIXY, the Company currently has 45 distribution centers with a total area of 1,921 thousand sq. m.

«

Fedor Pavlovsky

Logistics Director of Magnit Retail Chain

»

 

 

 

 

"For us, the Noginsk distribution center has strategic importance. It will enable us to significantly shorten delivery distances, which will result in better availability and freshness on the shelf. We plan to ship products to all of our core formats: convenience stores, supermarkets, superstores, as well as Magnit Cosmetic stores. We intend to use the Noginsk distribution center to reinforce our presence in Moscow and Moscow region and create a solid foundation for future development in this geography."

 

 

 

 

 

For further information, please contact:

 

Dina Chistyak

Head Investor Relations 
dina_chisty[email protected]

Office: +7 (861) 210 9810 x 15101

 

Media Inquiries  Twitter

[email protected]  @MagnitIR

 

 

 

Note to editors

 

Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of June 30, 2021, Magnit operated 39 distribution centers and 22,344 stores (15,348 convenience, 469 supermarkets and 6,527 drogerie stores) in 3,802 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the unaudited IFRS 16 management accounts results for 1H 2021, Magnit had revenues of RUB 822.2 billion and an EBITDA of RUB 94.4 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB. 

 

 

Forward-looking statements

 

This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and/or store openings are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.

 



ISIN: US55953Q2021
Category Code: MSCU
TIDM: MGNT
LEI Code: 2534009KKPTVL99W2Y12
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 118944
EQS News ID: 1223276

 
End of Announcement EQS News Service

fncls.ssp?fn=show_t_gif&application_id=1223276&application_name=news&site_id=financialexpress

a d v e r t i s e m e n t