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X5 Reports 30.7% Revenue Growth in Q3 2016

October 26, 2016. TAG: Retail Trade

Amsterdam, 26 October 2016 - X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: FIVE), today released the Company’s unaudited condensed consolidated interim financial information for the nine months (9M) ended 30 September 2016, in accordance with International Financial Reporting Standards as adopted by the European Union.

•    Revenue growth accelerated to 30.7% 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 36.1% y-o-y.

•    X5 added 638 net new stores in Q3 2016 vs. 541 in Q3 2015, contributing additional net selling space of 277.8 th. sq. m. in the quarter.

•    The gross margin decreased by 57 b.p. y-o-y to 24.4% in Q3 2016 due to value proposition refinements including targeted re-investment of operating efficiencies into lower prices to maintain consumer loyalty, as well as on the back of the changes in the retail formats’ contribution to gross profit.

•    SG&A expenses (excl. D&A&I) as a percentage of revenue improved by 106 b.p. y-o-y to 17.4%, due to the positive impact of ongoing projects to improve operational efficiency and as a result of operating leverage.

•    EBITDA grew by 39.3% y-o-y and reached RUB 19,863 mln in Q3 2016. The EBITDA margin improved by 48 b.p. y-o-y in Q3 2016 to 7.8%.

•    The Company’s net debt/EBITDA ratio decreased to 2.15x as of 30 September 2016, the lowest since 31 December 2009.

The full version of this press-release you can find on 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.