OREANDA-NEWS. January 21, 2008. JSC “The Seventh Continent” 2007 trade sales have increased 32% YoY, the company's press service reported. The growth in sales in the hypermarket format for 2007 reached 101% YoY. Like-For-Like sales (LFL) increased 17.8%. Based on management accounts the Company’s 2007 gross retail sales[1] increased 32% and reached USD 1 405 mn.

As of the end of 2007, the Company managed 127 stores, including 121 supermarkets and 6 hypermarkets. As of the end of 2007, the selling space of the Company’s chain of stores under the brands “Seventh Continent” (supermarkets), “Nash Hypermarket” (“Our Hypermarket”) and “Prostore” accounts for 147 th. sq. m. and as of the year passed has increased 7.5%. The average ticket in the Company’s chain of stores for the 2007 has grown 19% compared to the year 2006 and reached $14.1 USD. 2007 Like-For-Like sales (LFL) have increased 17.8% in dollar terms and 10.7% in ruble terms.

On June, 21, 2007, the Company has successfully placed by open subscription on the Moscow Interbank Exchange (MICEX) 5-year bonds (02 series, registration number 4-02-00462-H dated 26/12/2006), raising RUB7 bn. The auction received bids totaling more than RUB 9.2 bn, 45% of bids were placed by foreign investment companies and banks. The 1-6 coupon was set at 7.8% per annum. The issue provides 100% put options after 2 and 3 years of the date of issue. On December 20 th 2007, the company made the first coupon payment on bonds in the amount of 272.23 mn. rubles.

On the 27th of September 2007, the Company repaid the principal on the loan to Dresdner Bank AG London Branch in the amount of USD 31.8 mn. The 2-year facility in the amount of USD 90 mn. with interest rate of 7.25% per annum was acquired in September 2005. On 27th of September 2006 the Company has repaid the first part of principal of the loan in the amount of USD 58.2 mn.

On July 31, 2007 the Company has signed the USD 36 mn. facility Loan agreement with the Black Sea Trade and Development Bank (BSTDB) with 3-years maturity. The Loan terms include semi-annual interest periods and the grace period. The interest rate is established as 6-month LIBOR + 1.5%.

Galina Ilyashenko, CEO of the Company, said: “We are satisfied with the results that we have achieved in 2007. We have successfully entered new regions and strengthened our position on the Moscow market by opening new stores and succeeding in restyling some of the original “Seventh Continent” supermarkets in the heart of the capital. We continued introduction of high-tech solutions into business processes and optimization of the Company’s operational activities. The year passed was very important for us in establishing the fundamental base for mid-term development strategy of the Company in the supermarket as well as the hypermarket format. One of the key events in 2007 became the signing of the strategic Agreement with the “Tashir” group of companies on joint development of the modern hypermarkets and shopping malls in Moscow and other Russian regions. In line with the Agreement already in 2007 the Company has signed the contracts for the development of 11 new hypermarkets that will be owned by the Company after the construction completion. It completely corresponds with the Company’s strategy for active development of the hypermarket format in Russian regions.”