Russian retail major X5 sales surge 32.6%

20 April 2012 (Last Updated April 20th, 2012 02:00)

Russian food retailer X5 Retail Group has posted 32.6% growth in fiscal 2011 net sales to RUB454.19bn or 37% in US dollar terms to $15.46m, compared to the previous fiscal year.

Russian food retailer X5 Retail Group has posted 32.6% growth in fiscal 2011 net sales to RUB454.19bn or 37% in US dollar terms to $15.46m, compared to the previous fiscal year.

Gross retail sales surged 32%, in ruble terms, driven by a 6% rise in like-for-like sales, a 12.1% increase from organic store expansion and a 13.9% contribution from acquired Kopeyka stores.

In the full-year to 31 December 2011, hypermarket sales were up 12.7% to $2.27bn, compared to $2.01bn in the previous fiscal year.

During the same period, supermarket sales advanced 22.7% to $3.36bn from $2.73bn in corresponding period a year earlier.

In the fiscal 2011, sales at soft discounters jumped 26.5% to $7.84bn from $6.2bn, while convenience stores sales climbed 66.5% to $101.8m from $61.2m in the year ago period.

Online sales plunged 61.6% to $7.8m in the current reporting period, compared to $20.3m in the same period last year.

Kopeyka stores sales skyrocketed to 739.5% in the fiscal 2011, totalling $1.82bn from $217m in the corresponding period a year ago.

Net profits increased 11.4% to $302.2m in the year to the end of December 2011, compared to $271.2m in the same period a year earlier.

Earnings before interest, tax, depreciation and amortisation (EBTIDA) amounted to $1.13b, an increase of 34% from the previous year, with margins of 7.3%.

During the same period, operating profit advanced 28.8% to $702m, compared to $545.1m in the year ago period.

X5 Retail Group chief executive Andrei Gusev said in 2011, the firm has remained Russia's number one retailer, in terms of sales.

"Thanks to stepped-up organic growth, and the rapid integration of Kopeyka stores, our retail footprint increased by over 65% year-on-year, to 3,002 stores, resulting in an increase in customer visits to 1.6 billion in 2011," Gusev said.

"Our capital expenditures remained well below budget, at RUB27 bln, and were fully financed by internally generated cash flows, which allowed us to reduce our net debt to EBITDA ratio to 3.1x at 31 December 2011 compared to 3.7x at 31 December 2010."

In fiscal 2011, X5 opened a net 577 new stores organically, while adding 118 thousand m² of warehouse space and integrated over 600 Kopeyka stores.