X5 Retail Group Reports 25.7% Net Retail Sales Growth in Q2 2016Amsterdam, 19 July 2016 - X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces today the Company’s preliminary consolidated net retail sales and operational results for the second quarter (Q2) and six months (H1) ended 30 June 2016(1).
• Total net retail sales growth remained strong at 25.7% y-o-y, driven by:
• 6.3% increase in like-for-like (LFL) sales; and
• 19.4% sales growth contribution from a 31.8% rise in selling space.
• In Q2 2016, X5’s LFL traffic growth accelerated to 3.0% y-o-y from 2.0% in Q1 2016 y-o-y.
• Pyaterochka continued to benefit from a value proposition that is one of the best-adapted for Russian consumers’ needs and from its strong opening programme, making it the key driver for X5’s Q2 2016 growth. Net retail sales rose by 30.6% y-o-y on the back of:
• 8.1% rise in LFL sales; and
• 22.5% increase from net new space, resulting from a 41.1% rise in selling space.
• In Q2 2016, Pyaterochka broke another company record, adding 235.5 th. sq. m. of selling space, nearly all of which was organic.
• Perekrestok’s net retail sales growth accelerated to 19.2% y-o-y in Q2 2016 from 18.2% y-o-y in Q1 2016.
• In Q2 2016, Perekrestok delivered positive LFL traffic for the second quarter in a row.
• X5 added 539 net new stores in Q2 2016 vs. 332 in Q2 2015, contributing to additional net selling space of 233.2 th. sq. m. in the quarter.
Key Drivers for Q2 2016 Results
• X5 demonstrated strong LFL sales performance despite low food inflation and weak consumer consumption during Q2 2016.
• LFL traffic was positive in each month of the quarter for Pyaterochka and for Perekrestok.
Expansion and refurbishment programme
• New space delivery continued to accelerate: X5 added 233.2 th. sq. m. of selling space in Q2 2016 vs. 161.9 th. sq. m in Q2 2015. Since the beginning of 2016, X5 has added 414.2 th. sq. m.
• Pyaterochka was the main driver for the store base increase. In Q2 2016, net added space increased by 64.8% y-o-y
• 356 Pyaterochka stores were refurbished in Q2 2016 as part of X5’s investment programme to upgrade existing stores. In conjunction with new openings, the share of stores operating under the new concept exceeded 83% as of 30 June 2016.
• 14 Perekrestok stores were refurbished in Q2 2016, which, along with new openings, brought the total share of stores operating under the new concept to more than 40% as of 30 June 2016.
• In Q2 2016, as part of the Company’s ongoing rationalisation programme, X5 closed 22 Pyaterochka stores, five Perekrestok stores, two Karusel stores and seven Express stores.
For more detailed information please refer to the following link
X5 Retail Group
X5 Retail Group is the leading food retailer in Russia. X5 shares are listed on London Stock Echange (LSE) in the form of Global Depositary Receipts. The Company operates several retail formats, including the chain of conveniently located proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand and Express convenience stores.