X5 Published Its Retail Sales and Operational Performance for the Quarter and Nine Months Ended 30 September 2009
09 Oct 2009
Amsterdam, 9 October 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 quarter and nine months ended 30 September 2009.
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Q3 2009 Highlights
• Net retail sales increased 24% year-onyear in RUR terms to RUR 65,701 mln and declined 4% in USD terms to USD 2,094 mln (incl. RUR devaluation effect of approximately 28%);
• X5’s LFL sales grew 8% in RUR terms year-on-year, supported by 7% traffic growth;
• Discounters’ customer traffic surged 12%, driving Pyaterochka’s LFL sales growth of 16% year-on-year;
• 53 stores (26.9 thousand sq.m. of selling space) added on net basis;
• Total warehouse space increased by 65.6 thousand sq. m. on net basis as the Company opened its first non-food distribution centre and continued to expand food warehouse capacity; |
9M 2009 Highlights
• Consolidated** net retail sales increased 38% year-on-year in RUR terms to RUR 196,615 mln or 2% in USD terms to USD 6,053 mln;
• On a pro-forma*** basis, net retail sales grew 26% year-on-year in RUR terms and declined 7% in USD terms (incl. RUR devaluation effect of approximately 33%);
• X5’s LFL sales grew 11% in RUR terms year-on-year on the back of 5% traffic growth;
• As at 30 September 2009 X5 operated 1,217 stores (962.7 thousand sq.m. in selling space), including 952 soft discounters, 210 supermarkets and 55 hypermarkets;
• Number of DCs reached 23 (293.3 thousand sq.m in warehouse space), supply centralisation level totaled 59%;
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• Due to the persistence of trading down trends among consumers and expected pressure on average purchase size in the fourth quarter 2009, X5 revises its full year revenue growth outlook to a more conservative range of around 24-25% in RUR terms on a pro-forma basis;
• Capitalizing on the current macro environment, X5 accelerated its store and DC opening program to exceed initial full year plans, while staying safely within its 2009 CapEx limit of RUR 14 bln.
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* Numbers provided in this press-release are preliminary and unaudited.
** Consolidated sales figures include acquired Karusel’s business as from 30 June 2008, when the acquisition was completed.
*** Pro-forma sales figures include acquired Karusel’s business from 1 January 2008.
Lev Khasis, X5 Retail Group CEO, commented:
"X5 delivered another strong quarter of customer traffic growth in a tough economic environment. We continue to win market share and outperform the competition thanks to our ‘close-to-the-customer’ strategy and ability to hold down prices. Discounters delivered sectorleading performance, and hypermarkets began to show positive traffic trends in Moscow and St. Petersburg as we continue to build Karusel’s brand with consumers.
"We maintain strong confidence in X5's strategic execution and proven ability to generate customer traffic and open new stores according to plan. Russian consumer trends remain weak, however, due to high unemployment levels and diminished purchasing power. Trading down persists and we do not yet see signs of recovery in consumer behaviour. We expect these external factors to put further pressure on average purchase size and top line performance in the fourth quarter, which is the reason for our more conservative sales growth outlook. At the same time, the fourth quarter pre-holiday season will be critical to full year performance, and we are
preparing for aggressive campaigns to drive sales and do our utmost to meet initial growth targets. "Despite current macro weakness, we are optimistic about the Russian retail sector and X5's prospects, and expect that our constant investment in customer loyalty during hard times will more than pay back when recovery begins. We are encouraged by the Rosstat consumer confidence index for the third quarter of 2009, which indicates that a growing number of Russians believe the economy will improve next year."
For more detailed information please refer to X5 web-site: http://www.x5.ru/
Note to Editors:
X5 Retail Group N.V. is Russia's largest retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format.
As at 30 September 2009, X5 had 1,217 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 952 soft discount stores, 210 supermarkets and 55 hypermarkets. As at 30 September 2009, X5’s franchisees operated 586 stores across Russia. For the full year 2008, X5’s net sales including acquired Karusel business on a pro-forma basis totaled USD 8,892 mln, EBITDA reached USD 803 mln, and net profit adjusted for non-cash goodwill impairment charge amounted to USD 112 mln.
For the first half 2009 X5’s net sales totaled USD 3,978 mln, EBITDA reached USD 347 mln, and net profit amounted to USD 48 mln. For the nine months 2009, net retail sales totaled USD 6,053 mln. X5 Shareholder structure is as follows: Alfa Group – 47.9%, founders of Pyaterochka – 23.1%, X5 Management – 1.9%, treasury shares – 0.1%, free float – 27.0%.
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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