We are neutral on Seventh Continent's operating results for July 2008. The retail chain's sales revenue grew by 38% y-o-y. The total number of the company's retail outlets did not change as compared to 1H 2008 and amounted to 137.
Table. Seventh Continent: Key Financials July 2008, USD million
| | July 2007 | July 2008 | Change July 2008 / July 2007 |
|---|
| Sales revenue incl. VAT, USD mn | 107 | 148 | 38% |
| Moscow region | 87 | 115 | 32% |
| Other region | 20 | 33 | 65% |
| Total number of stores | 124 | 137 | |
| Selling space, thousand sq.m | 143 | 168 | 17% |
Source: company data, Finam estimates
We are neutral on the retail network's operating results and believe they will not have any significant impact on Seventh Continent's stock valuations. However, the company continues strengthening its market positions lost in 2007 and has opened 10 stores YTD, including 3 hypermarket stores
In line with our estimates, the fair value of Seventh Continent is USD 24.4 per share.
0.234
30.89
