X5 Reports Q3 & 9M 2009 Results and 2010 Expansion Plan
30 Nov 2009
Amsterdam, 30 November 2009 - X5 Retail Group N.V., Russia's largest retailer in terms of
sales (LSE ticker: “FIVE”), today announced its IFRS results for the quarter and nine months
ended 30 September 2009, reviewed by auditors.
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Q3 2009 Highlights |
9M 2009 Highlights |
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• Net sales increased 24% year-on-year in RUR terms to RUR 65,980 mln;
• Net sales declined 4% in USD terms to USD 2,103 mln (incl. RUR devaluation effect of approximately 28%);
• Gross profit totaled USD 502 mln, for a gross margin of 23.9%;
• SG&A expenses including ESOP*** declined to 19.8% from 20.8% of sales a year ago. Net of ESOP, SG&A costs declined to 18.6% from 21.3% of sales for a respective period of 2008;
• EBITDA amounted to USD 162 mln, for an EBITDA margin of 7.7%, affected by ESOP cost of USD 26 mln;
• X5 reported a net profit of USD 73 mln on the back of strong operational & financial performance and a non-cash foreign exchange (FX) gain.
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• Consolidated* net sales increased 38% yearon-year in RUR terms to RUR 197,527 mln or 2% in USD terms to USD 6,081 mln;
• On a pro-forma basis**, net sales grew 26% year-on-year in RUR terms and declined 7% in USD terms (incl. RUR devaluation effect of approximately 33%);
• Gross profit totaled USD 1,481 mln, for a gross margin of 24.4%;
• SG&A expenses including ESOP declined to 19.7% from 20.8% of sales a year ago. Net of ESOP, SG&A costs declined to 19.2% from 20.8% of sales for a respective period of 2008;
• EBITDA amounted to USD 509 mln, for an EBITDA margin of 8.4%, including ESOP costs of USD 32 mln;
• X5 reported a net profit of USD 121 mln. |
2010 Preliminary Expansion & CapEx Outlook
• Net new store addition:
- Hypermarkets: 7-10 stores;
- Supermarkets: 15 stores;
- Discounters: 200-250 stores.
• Capital Expenditures of up to RUR 18 bln.
* Consolidated sales figures include the results of the acquired Karusel’s business as from 30 June 2008
** Pro-forma sales figures include acquired Karusel’s business from 1 January 2008
*** Employee Stock Option Program
X5 Retail Group CEO Lev Khasis commented:
"X5 delivered solid top-line growth thanks to sector-leading customer traffic for discounters and
positive trends at hypermarkets in Moscow and St. Petersburg, as we maintained price leadership
and offered quality products for every budget. While consumer confidence remains weak, we are
actively positioning X5 to benefit from future economic recovery through a balanced execution of
like-for-like growth strategy and stepped up expansion. We plan to accelerate store additions in
discounters, maintain healthy expansion in hypermarkets, while with the acquisition of Paterson,
we also reinforced our supermarket leadership in key markets, adding to the Company’s upside
potential."
X5 Retail Group CFO Evgeny Kornilov added:
"X5’s financial discipline and efficiency focus is paying off, contributing to a strong set of results.
We have substantially improved performance at the SG&A expense level, though the impact of
these savings was partially offset this quarter by higher ESOP expense attributable to sharp
appreciation of X5’s GDR price. Net of ESOP, we reduced SG&A expense as a percent of sales
by 270 basis points compared to last year’s third quarter and 160 basis points versus the first nine
months of 2008. We have also exceeded our plan for growing selling space this year while staying
well below plan on capital expenditures. Greater CapEx efficiency gave us room to maneuver for
consolidation opportunities, positioning X5 to acquire Paterson on very value enhancing terms
while financing this acquisition from operating cash flow."
The full version of Q3 & 9M 2009 results and 2010 expansion plan you can find on X5's website: www.x5.ru
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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