X5 Retail Group N.V. Q4 2006 and FY 2006 Trading update
18 Jan 2007
X5 Retail Group N.V. (LSE ticker: “FIVE”) provided today a trading update including store opening data and Like-for-Like (“LFL”) sales trends for the Pyaterochka and Perekrestok chains for Q4 and FY 2006.
Expansion
X5 Retail Group N.V. has successfully completed its 2006 store opening program gaining additional net selling space of approximately 59,000 square metres in Q4 2006. Over the FY 2006, X5 Retail Group N.V. gained additional net selling space of approximately 126,000 square metres (of which approximately 68,000 square metres for Perekriostok chain, and approximately 58,000 square metres for Pyaterochka chain), thus outstripping its FY2006 store opening target to add approximately 120,000 square metres. As of 31 December 2006, X5 Retail Group N.V. operated approximately 466,000 square metres of net selling space.
In terms of numbers of stores, the Group opened 33 new “Pyaterochka” soft-discount stores and 27 new “Perekrestok” supermarkets during Q4 2006. As of 31 December 2006, X5 Retail Group N.V. operated 451 company-managed Pyaterochka soft-discount stores and 168 Perekrestok stores, including 12 hypermarkets.
Moscow
In Moscow, Pyaterochka chain gained additional net selling space of approximately 13,000 square metres during Q4 2006, implying a total of approximately 35,000 square metres gained in 2006. As of 31 December 2006, Pyaterochka chain operated a total of approximately 135,000 square metres of net selling space in the Moscow area. Perekrestok chain gained additional net selling space of approximately 20,000 square metres during Q4 2006, implying a total of approximately 30,000 square metres gained in 2006. As of 31 December 2006, Perekrestok chain operated a total of approximately 111,000 square metres of net selling space in the Moscow area.
In terms of numbers of stores, as of 31 December 2006, the Group operated in the Moscow area 222 Pyaterochka soft discount stores and 100 Perekrestok stores including 3 hypermarkets.
St. Petersburg
In St. Petersburg, Pyaterochka chain gained additional net selling space of approximately 2,000 square metres during Q4 2006, implying a total of approximately 19,000 square metres gained in 2006. As of 31 December 2006, Pyaterochka chain operated a total of approximately 114,000 square metres of net selling space in the St. Petersburg area. Perekrestok chain gained additional net selling space of approximately 2,000 square metres during Q4 2006, implying a total of approximately 10,000 square metres gained in 2006. As of 31 December 2006, Perekrestok chain operated a total of approximately 20,000 square metres of net selling space in the St. Petersburg area.
In terms of numbers of stores, as of 31 December 2006, the Group operated in the St. Petersburg area 204 soft discount Pyaterochka stores and 17 Perekrestok stores.
Russian Regions, Ukraine and Kazakhstan
In the regions outside of Moscow and St. Petersburg, Perekrestok chain gained additional net selling space of approximately 20,000 square metres during Q4 2006, implying a total of approximately 29,000 square metres gained in 2006. As of 31 December 2006, Perekrestok chain operated a total of approximately 78,000 square metres of net selling space in the regions.
In Yekaterinburg, Pyaterochka chain gained additional net selling space of approximately 2,000 square metres during Q4 2006, implying a total of approximately 4,000 square metres gained in 2006. As of 31 December 2006, Pyaterochka chain operated a total of approximately 9,000 square metres of net selling space in Yekaterinburg.
In terms of numbers of stores, as of 31 December 2006, in the regions outside of Moscow and St. Petersburg the Group operated 25 Pyaterochka stores and 51 Perekrestok stores, including 9 hypermarkets.
Pyaterochka’s franchisees also continued to expand rapidly, opening 66 new stores operating under the Pyaterochka brand during Q4 2006. As of 31 December 2006, Pyaterochka’s franchisees operated 605 stores across Russia, in Ukraine and Kazakhstan. Perekrestok had 10 stores operated by franchisees in the Moscow area.
Store Operations
Over the year of 2006, X5 Retail Group N.V. not only outstripped its store opening target but also experienced strong Like-for-Like sales[1][1] trends across both chains, demonstrating the strongest performance in Q4 2006 (+13%). In Q4 the Group maintained the positive Like-for-Like sales trends of the previous quarters in Moscow, and showed continued improvement of Payterochka Like-for-Like sales performance in St. Petersburg.
Group
During Q4 2006, Group LFL sales performance (including both chains) reached +13%, composed of traffic of +8% and basket growth of +5%. For FY 2006, the group experienced LFL sales of +11%, composed of traffic of +3% and basket growth of +8%.
The Pyaterochka chain experienced overall LFL sales performance of +11% during Q4 2006 (traffic +3%, basket growth of 8%), and 9% for FY 2006 (traffic 0%, basket growth of +9%).
The Perekrestok chain experienced overall LFL sales performance of +15% during Q4 2006 (traffic +13%, basket growth of +2%), and +14% for FY 2006 (traffic +8%, basket growth of 6%).
Moscow
LFL sales at Moscow area Pyaterochka stores reached +14% during Q4 2006, composed of traffic of +7% and an increase in the average basket of +7%. Over FY 2006, the Pyaterochka stores in Moscow experienced LFL sales performance of +13%, composed of traffic of +3% and basket growth of +10%.
LFL sales at Moscow area Perekrestok stores reached +18% during Q4 2006, on the basis of traffic of +15% and basket growth of +3%. During FY 2006, the Perekrestok stores in Moscow experienced LFL sales performance of +16%, composed of traffic of +10% and basket growth of +6%.
St. Petersburg
LFL sales at St. Petersburg area Pyaterochka stores reached +7% during Q4 2006, composed of traffic of -1% and basket growth of +8%. During FY 2006, the Pyaterochka stores in St. Petersburg experienced LFL sales performance of +3%, composed of traffic of -4% and basket growth of +7%.
LFL sales at St. Petersburg area Perekrestok stores reached 10% during Q4 2006, on the basis of traffic of +14% and basket of -4%. During FY 2006, the Perekrestok stores in St. Petersburg experienced LFL sales performance of +8%, composed of traffic of +10% and basket of -2%.
Regions
LFL sales at Perekrestok stores in the regions outside of Moscow and St. Petersburg reached +7% during Q4 2006, composed of traffic of +5% and basket growth of +2%. For FY 2006 these stores experienced LFL sales of + 11%, based on traffic of +5% and basket growth of +6%.
Note to Editors:
X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of 31 December 2006, the Group had 451 company-managed "Pyaterochka" soft discount stores located in the Moscow (222), St. Petersburg (204) and Yekaterinburg (25) areas, and 168 company-managed "Perekrestok" supermarkets across Central Russia and Ukraine, including 100 stores in Moscow.
As of 31 December 2006, franchisees operated 605 Pyaterochka branded stores across Russia, in Ukraine and Kazakhstan. Perekrestok had 10 convenience stores operated by franchisees in the Moscow area.
Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 to create the clear leader in the Russian food retail market.
Pyaterochka’s 2005 net sales (pre-merger) reached USD 1,359 million, with gross banner sales in 2005 of over USD 2 billion. Perekrestok net sales reached USD 1,015 million in 2005.
The Group’s pro forma net sales for the 9 months of 2006 were US $2,411 million (management accounts). During 1H 2006, the Pyaterochka chain provided US $1,374 million of net sales, while the Perekrestok chain contributed US $1,037 million of net sales.
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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