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X5 Reports Q2&H1 2016 Financial Results

August 17, 2016. TAG: Retail Trade

Amsterdam, 17 August 2016 - X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: FIVE), today released its interim report for the Half Year 2016, in accordance with IAS 34 “Interim Financial Reporting” as adopted by the European Union. The interim report has been reviewed by the independent auditor and has not been audited.


    Revenue growth remained strong: revenue increased by 25.9% year-on-year (y-o-y) on the back of solid like-for-like (LFL) sales and strong selling space expansion.

    Pyaterochka was the main driver of growth: net retail sales rose by 30.6% y-o-y.

    X5 added a total of 539 new stores in Q2 2016 vs. 332 new stores during the same period last year, delivering selling space growth of 233.2 th. sq. m.

    The gross margin decreased by 28 b.p. y-o-y to 23.8% in Q2 2016 on the back of ongoing improvements to the value proposition, including targeted re-investment of operating efficiencies into lower prices to support consumers in the current environment.

    SG&A expenses (excl. D&A&I) as a percentage of revenue improved by 110 b.p. y-o-y to 16.5%, due to the positive impact of ongoing projects to improve operational efficiency and as a result of operating leverage.

    EBITDA grew by 39.0% y-o-y and reached RUB 20,005 mln in Q2 2016. The EBITDA margin improved by 75 b.p. y-o-y in Q2 2016 to 8.0%, the strongest since Q4 2012.

    The Company’s net debt/EBITDA ratio decreased to 2.34x as of 30 June 2016, from 2.45x as of 31 December 2015.


X5’s Chief Executive Officer Igor Shekhterman said:

“X5 has now maintained its position as Russia’s fastest-growing public retailer by revenue for three quarters in a row. We are especially pleased to have delivered strong revenue growth, LFL performance and margin expansion despite continued challenges in the market environment.

“Moreover, we have achieved these market-leading growths while remaining focused on efficiency and operational excellence. We have a number of projects underway that will help improve in-store excellence, and are already seeing some benefits in our margins whilst also being able to make targeted price investments to support our consumer base when needed. Our Geographic Information System, that we have rolled out to make choosing new store locations significantly more efficient, is a great example of a project that is helping us to grow revenue efficiently and profitably.

“Looking ahead, we believe that X5 Retail Group remains well positioned to continue on its trajectory of high-quality growth, deliver on our business plan and strategic targets and generate further increases in shareholder value.”

The full version of this press-release you can find on the following link https://www.x5.ru/en/Pages/170816.aspx

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.