MAGNIT PJSC (MGNT)
Press-release | Krasnodar | February 3, 2021.
Magnit Launches a Truck Fleet Renewal Program
Krasnodar, Russia (February 3, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, has launched a program to renew its truck fleet. Its implementation will allow increasing the freshness of goods on the shelves while reducing harmful emissions into the environment.
In 2021, the Company plans to purchase 530 medium-duty trucks that will be used to deliver goods to stores in cities with a high density of retail outlets. Thanks to theses trucks, Magnit will be able to reduce the time of delivery to stores and accordingly increase their availability on the shelves and keep them fresh. In addition, the Company will purchase 220 new line-haul trucks consisting of MAN tractor units and Schmitz Cargobull semi-trailers with increased cargo capacity for long-distance delivery. The purchase of new vehicles will reduce the average age of the fleet by almost two years.
All trucks are equipped with modern refrigeration and heating systems: medium-duty vehicles are equipped with ThermoKing engine-powered refrigerators; semi-trailers use self-contained Carrier refrigerators. These systems ensure the preservation of goods thanks to accurate temperature control with timely heating and cooling, and can be used to transport not only frozen products, but also heat-sensitive goods-cosmetics, medicines, etc. All trucks will have sensors for registering and monitoring the temperature of goods on the way to stores, which will ensure the high quality of the delivered products.
The trucks delivered by MAN meet the most stringent requirements to fuel efficiency, reliability, and cost-effectiveness, thanks in part to their engines, which are Euro 5 compliant. The use of engine-driven cooling and heating systems that consume fuel from the main engine and have a lower noise level will further improve the environmental characteristics of new medium-duty trucks. The renewal of Magnit's truck fleet represents a continuation of the two companies' longstanding partnership. MAN's comprehensive enterprise transportation solution, which inculdes a two-year warranty for the trucks and enables customers to use its expansive service network and take advantage of the automaker's extensive engineering expertise, will allow Magnit to improve the reliability, efficiency, and effectiveness of its shipping operations.
"Magnit is one of the the largest privately owned logistics operators in Russia. Over the past few years, we have been gradually optimizing our fleet by increasing its productivity, selling inefficient vehicles, and deploying modern trucks, as well as engaging third-party shipping services where efficient. We expect that, by the end of 2021, our fleet will consist of 4,000 trucks and will be as balanced as possible. In preparation for the renewal of the truck fleet this year, we have carefully worked out the specification, focusing on the environmental friendliness of the trucks in accordance with our intentions to create truly "green" logistics at Magnit,"-commented Maria Dei, Magnit's Supply Chain Director.
For further information, please contact:
Director for Investor Relations
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Director for Investor Relations
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Media Relations Department
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 September 30, 2020, Magnit operated 38 distribution centres and 21,154 stores (14,699 convenience, 469 supermarkets and 5,986 drogerie stores) in 3,819 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts results for 1H 2020, Magnit had revenues of RUB 763.4 billion and an EBITDA of RUB 86.9 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.
This document contains forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and 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.
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