X5 Reports Strong Nine Months 2008 Results
01 Dec 2008
Amsterdam, 1 December 2008 - X5 Retail Group N.V., Russia's largest retailer in terms of sales
(LSE ticker: “FIVE”), today announced its IFRS results for the third quarter and nine months
ended 30 September 2008 reviewed by auditors.
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Q3 2008 X5 Highlights* |
9M 2008 X5 Highlights* |
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• Pro-forma net sales** surged 48% year-on-year to USD 2,190 mln; |
• Pro-forma net sales** surged 56% year-on-year to USD 6,516 mln; |
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• Pro-forma LFL sales increased 21%; |
• Pro-forma LFL sales increased 25%; |
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• Gross profit grew by 46% year-on-year to USD 559 mln, for a gross margin of 25.5%; |
• Gross profit grew by 54% year-on-year to USD 1,674 mln for a gross margin of 25.7%; |
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• EBITDA reached USD 191 mln, a year-on-year increase of 62%; EBITDA margin totaled 8.7%; |
• EBITDA reached USD 578 mln, a year-on-year increase of 61%; EBITDA margin totaled 8.9%; |
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• X5 reported a net loss of USD 14.7 mln for Q3 2008 due to mainly non-cash foreign exchange loss. Adjusted net profit excluding FX revaluation effects*** increased 192% year-on-year to USD 56 mln. |
• X5 reported a USD 138 mln net profit for the first nine months 2008, an increase of 128% year-on-year. |
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2009 Preliminary Outlook Highlights
• Net sales growth of over 25% in RUR terms;
• LFL sales growth of 15-17% in RUR terms;
• Capital Expenditures of up to USD 500 mln.
* All P&L numbers in this press release are presented on pro-forma basis, i.e. including Karusel results from 1 January 2007 and 2008 respectively. For your convenience, consolidated P&L numbers (excluding Karusel results in 2007 and including them in 2008 from 30 June 2008) are provided in Appendix II to this press release as well as in the Condensed Consolidated Interim Financial Statements and Review Report, which is available on X5’s website at www.x5.ru/en/.
** Excluding VAT
*** Excluding FX gain/loss and adjusted for respective tax
X5 Retail Group CEO Lev Khasis commented:
“X5 is reaching the end of the year as the unrivalled leader in Russian retail, and we see further
opportunities for gaining market share. In the current economic environment, food retail remains
one of the most resilient sectors as consumers shop for their basic needs. X5’s scale, purchasing
power and ability to respond to changes in the marketplace give us a clear competitive advantage.
We are enhancing each format’s pricing and assortment to win more customers and drive sales.
Our preliminary outlook for 2009 reflects our confidence in X5’s prospects for healthy double
digit like-for-like and net sales growth.”
X5 Retail Group CFO Evgeny Kornilov added:
“We delivered strong results despite third quarter seasonality and non-recurring costs for the
integration of Karusel, which was completed well ahead of schedule. X5’s operational
performance and increased cash flow in the second half of 2008 give us an opportunity to reduce
short-term debt by the end of the year. Our liquidity position is healthy, supported by prudent
financial management and a more conservative capital expenditure programme, as well as secured
credit lines and strong cash generation, which should enable us to further reduce leverage in
2009.”
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