Russian food retailer X5 Retail Group released the Company’s condensed consolidated interim financial information for the three (Q3) and nine months (9M) ended 30 September 2013.
Net sales in Q3 and 9M 2013, reported in U.S. Dollars (USD), increased by 4.3% and 5.9% yearon-year (y-o-y), respectively, which differs from the reported increase in Russian Rouble (RUR) terms due to exchange rate differences between the RUR, X5’s operational currency, and the USD, the Company’s presentation currency.
In Q3 and 9M 2013, X5’s net sales in RUR terms grew by 7.0% and 7.7% y-o-y, respectively, primarily due to an increase in net retail sales resulting from organic store additions, price inflation and the positive performance of maturing stores added over the past two years.
The Company’s gross profit margin in Q3 and 9M 2013 amounted to 25.1% and 24.4%, respectively, a 225 basis point (bp) and 98 bp increase compared to Q3 and 9M 2012, respectively. The increase in both periods was primarily due to improvements in the commercial margin resulting from improved conditions from suppliers, which was partially offset by higher logistics and shrinkage expenses.
X5 Retail Group operates multi-format stores including discount stores, supermarkets and hypermarkets.
The product portfolio includes national and private brands of food, alcohol and non-food items. It primarily operates through three store formats: soft discounters, supermarkets and hypermarkets.
The company operates stores under five brands: Pyaterochka, Perekrestok, Karusel, Pyaterochka-Maxi and Perekrestok-Express. Geographically, the company's operations span across Russia and Ukraine.
