Magnit aims at consistent dividend payments in 2025 strategy

MOSCOW, Feb 18 (PRIME) – Russian grocery retailer Magnit will pay dividends consistently under its strategy for 2021–2025, the company said in a presentation published on Thursday.

“The focus is on a high yield and creation of additional value for the shareholders that will ensure consistent payment of dividends,” the presentation read.

The margin on earnings before interest, taxes, depreciation, and amortization (EBITDA) should rise to 8% until 2025 from 7% in 2020. Magnit also plans to maintain the debt to EBITDA ratio at a comfortable 1.5x, with the threshold of 2x.

The company’s plans for gross launches of stores until 2025 include openings of 1,000–1,500 convenience stores, 750–1,000 cosmetics stores, and 5–15 supermarkets and superstores per year. Magnit wants to focus on improving its “smart” organic expansion.

The strategy also includes creation of an “e-grocery” platform that would be integrated into the “omni-channel consumer experience” to boost the share of online sales to at least 5% of the combined turnover until 2025.

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