X5 Q2&H1 2009 Trading Update
10 Jul 2009
Amsterdam, 10 July 2009 - X5 Retail Group N.V., Russia's largest retailer in terms of revenue
(LSE ticker: “FIVE”), announced today its retail sales and operational performance for the second
quarter and first half of 2009.
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Q2 2009 Highlights |
H1 2009 Highlights |
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• Consolidated net retail sales increased 46% year-on-year in RUR terms to RUR 67,826 mln or 7% in USD terms to USD 2,100 mln;
• On a pro-forma basis, net retail sales grew
26% year-on-year in RUR terms and declined 8% in USD terms (incl. RUR devaluation effect of approximately 34%);
• X5’s LFL sales grew 11% in RUR terms
year-on-year, supported by 6% traffic growth;
• Discounters’ customer traffic surged 11%,
driving Pyaterochka’s LFL sales growth of
18% year-on-year;
• 20 stores added on net basis in Q2 2009,
including four hypermarkets, 14 soft discounters and two supermarkets (net addition of 28.7 thousand sq. m. of selling space);
• Warehouse space increased by 26.4
thousand sq. m. through three new DCs
addition and existing warehouse capacity
expansion. |
• Consolidated net retail sales increased 46% year-on-year in RUR terms to RUR 130,914 mln or 6% in USD terms to USD 3,959 mln;
• On a pro-forma basis, net retail sales grew
27% year-on-year in RUR terms and declined 8% in USD terms (incl. RUR devaluation effect of approximately 35%);
• X5’s LFL sales grew 12% in RUR terms
year-on-year on the back of 5% traffic growth;
• As at 30 June 2009 X5 operated 1,164
stores, including 900 soft discounters, 211
supermarkets and 53 hypermarkets;
• As at 30 June 2009 X5’s stores net selling
area totaled 935.8 thousand sq. m.;
• Number of Distribution Centres (DCs)
increased to 22, raising supply centralization rate to 59%;
• Total warehouse capacity reached 227.7
thousand sq.m. |
• 2009 sales growth and CapEx outlook, as announced on 6 March 2009, reiterated.
* Numbers provided in this press-release are preliminary and unaudited.
** Consolidated sales figures include acquired Karusel’s business in Q2 and H1 2009 and exclude it in Q2 and H1
2008.
*** Pro-forma sales figures include acquired Karusel’s business in Q2 and H1 2008, as well as in Q2 and H1 2009.
Lev Khasis, X5 Retail Group CEO, commented:
“In the second quarter we saw trading down trends deepen as consumer confidence and purchasing power weakened further. X5 is staying close to its customers by keeping prices down and delivering quality assortment across formats. Sales surged beyond expectations at discounters as price-conscious consumers responded enthusiastically to Pyaterochka’s “lowest price on the market” initiative, which drove exceptional traffic and market share gains. Other formats were pressured by the weaker environment: Healthy supermarket sales performance in Moscow and St. Petersburg was offset by economically-affected regions. Hypermarkets also
faced economic headwinds, which particularly affected non-food part of the business. Educating consumers about our new value proposition in hypermarkets takes time, and we are intensifying efforts to build Karusel’s brand with publicity campaigns, special promotions and our summer sale launched in the third quarter.
“At the same time, current conditions have substantially improved the availability of high quality trading space. This provides opportunities for X5 to secure prime locations for all three formats and warehouses on very attractive terms, with the potential to generate outstanding returns. For this reason, we accelerated expansion of our distribution capacity. This enabled X5 to reach a supply centralisation level of 59%, exceeding our 2009 target and enhancing our scope for operational improvements. We expect this, in combination with our cost control efforts, to drive profitability and cash generation this year.
“Government consideration of the draft retail law intensified in the past few weeks. We continue to play an active role in this dialogue as legislation is taking shape and will inform the market once the process reaches a more advanced stage. Our objective is to support the development of an efficient modern retail sector to the benefit of consumers and the Russian economy."
Forward-looking statements:
This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as” anticipate”, “target”, “expect”, “estimate”, “intend”, “expected”, “plan”, “goal” believe”, or other words of similar meaning.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements. Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
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