OREANDA-NEWS. JSC The Seventh Continent announced 2Q and 1H 2007 IFRS results with the review of financial statements by independent auditors, the company's press-service reported.

Total sales of the company in 2Q 2007 increased 34.3% y-o-y and reached USD 304.4 mln. 1H 2007 sales amounted to USD 593 mln and increased 31.6% y-o-y. The gross profit in 2Q 2007 has grown 32.2% and amounted to USD 93.3 mln with gross profit margin at the level of 30.7%. 1H 2007 gross profit grew by 29.7% y-o-y and reached USD 182.5 mln with 30.8% gross profit margin.

In 2Q the company's EBITDA without the consolidation of the financial results of the LLC Bank Finservice [1] results reached USD 36.3 mln, and EBITDA margin comprised 11.9%. EBITDA, including the financial results of the LLC  Bank Finservice, reached USD 35.2 mln and EBITDA margin comprised 11.6%. EBITDA for 1H 2007 without the consolidation of the bank grew to USD 63.6 mln and the EBITDA margin made up 10.7%. 1H 2007 EBITDA, including the financial results of the LLC  Bank Finservice, reached USD 57.6 mln with the EBITDA margin being 9.7%. Net income for 2Q 2007 reached USD 36.6 mln with the net income margin of 12% (including the LLC Bank Finservice). Net income for the 1H 2007 amounted USD 51.2 mln with 8.6% net income margin. 2Q net income has grown 204% y-o-y and 1H 2007 net income has grown 61% y-o-y. 2Q 2007 non-operating revenues include a revenue in the form of goodwill arisen as a result of acquisition of the JSC Obyedinennaya torgovaya nedvizhimost  (Joint Trade Real Estate) to the sum of USD 15.3 mln [2] (the fair value of the acquired share in JSC Joint Trade Real Estate net assets exceeded the cost of acquisition).

On June 21, 2007, the company has successfully placed (by open subscription) at the Moscow Interbank Exchange (MICEX) 5-year bonds (02 series, registration number 4-02-00462-H dated 12/26/2006), raising RUB7 bln. The auction received bids totaling more than RUB 9.2 bln; 45% of bids were placed by foreign investment companies and banks. The 1-6 coupon was set at 7.8% per annum.

As of the end of June 2007, the company managed 125 stores, including 119 supermarkets and 6 hypermarkets. Selling space of the company's chain of stores under the brands  Seventh Continent,  Nash Hypermarket  (Our Hypermarket) and  Prostor (Space)  accounts for 145 th. sq. m. and for the year passed has increased by 16%.

The average ticket in the company's chain of stores for 2Q 2007 has grown 19% compared to the similar period of 2006 and reached $12.9.

2Q 2007 Like-For-Like sales (LFL)[1] increased 17.3% in dollar terms and 11.4% in ruble terms. 1H 2007 Like-For-Like sales (LFL) were up 16.2% in dollar terms and 9.5% in ruble terms.
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[1] The company acquired the control share of the  Bank Finservice  in April 2006 to develop the  in-store banking  project. In the consolidation of financial results the operational costs of the  Bank Finservice are accounted for as other operational expenses, thus decreasing the operational profit result, while most of the bank revenues are accounted as non-operational revenues. Thus, the full influence of the Bank Finservice financials in the consolidated financial statements is represented at the net income level.
[2] On May 27, 2007, the Annual general meeting made a decision to make a merge-reorganization by transferring all the rights and duties of the JSC Joint Trade Real Estate (100% subsidiary) to JSC Seventh Continent.