Х5 Retail Group Reports 27,5% Net Retail Sales Growth in 2016Amsterdam, 24 January 2017 - X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), today announces preliminary consolidated net retail sales and operational results for the fourth quarter (Q4) and full year (FY) ended 31 December 2016(1).
FY 2016 Highlights:
• X5 delivered total net retail sales growth of 27.5% year-on-year (y-o-y), the Company’s fastest pace of growth since 2011.
• Net retail sales growth of RUR 221.5 bln was the highest in X5’s history.
• Net retail sales growth was driven by a 7.7% increase in like-for-like (LFL) sales and a 19.8% sales growth contribution from a 29.1% rise in selling space.
• LFL traffic growth improved to 2.5% in 2016, up from 2.3% in 2015.
• The Company added a record 2,167 new stores in 2016, vs. 1,537 stores in 2015.
• Net additional selling space of 968.6 th. sq. m., driven primarily by organic expansion, was the largest annual opening programme delivered by X5.
• X5’s proximity store chain Pyaterochka added 906.6 th. sq. m. of net selling space, a record for any Russian food retail brand in a single year.
Q4 2016 Highlights:
• Total net retail sales growth remained strong at 27.5% y-o-y, while decelerating slightly vs. Q3 2016, mainly due to slowing food price inflation.
• Pyaterochka was the main driver of growth in Q4 2016: net retail sales rose by 31.2% y-o-y, driven by 7.5% growth in like-for-like (LFL) sales and a 23.7% contribution to sales growth from a 37.4% increase in selling space.
• In Q4 2016, the Company demonstrated positive LFL traffic for all three major formats.
• LFL traffic of Perekrestok was positive for four quarters in a row and was the highest among all formats of X5 in each month of the fourth quarter.
• LFL traffic of Karusel was positive for the first time since Q4 2015.
• X5 added 613 net new stores in Q4 2016, contributing to additional net selling space of 276.6 th. sq. m. in the quarter.
X5 Chief Executive Officer Igor Shekhterman said:
The trends that have dominated the Russian food retail market since 2014 continued to affect the sector and X5 in 2016, with some possible signs of stabilisation through a deceleration in the pace of food inflation. It is still too early to speak of a full-fledged recovery being underway, however, and we maintain our sharp focus on efficiency and continuously adapting value propositions to best address Russian consumers' needs, as we have been doing successfully since 2013 when X5’s strategic transformation was launched.
We are delighted that X5 Retail Group has delivered another year of strong results across numerous key performance indicators, including best-in-sector top-line growth and like-for-like performance. X5 set another record in 2016, with nearly one million sq. m. of new selling space added, predominantly through organic growth. We feel that we have the team, the systems and the resources in place to deliver on our strategic goals.
After delivering yet another record year in 2016, we will continue to pursue X5’s strategic targets of profitable, sustainable growth, moving towards 15% market share by the end of 2020 as the leading player in the Russian market.
(1) Numbers in this press release are preliminary and have not been reviewed or audited by the Company’s auditor.
The full version of this press-release you can find on the following link https://www.x5.ru/en/Pages/Media/240117.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.