Russian food retailer X5 Group has posted 'strong' year-on-year revenue growth of 25.1% in the second quarter of its financial year, driven by growth in like-for-like (LFL) sales and selling space expansion.
X5 Group, which operates the Pyaterochka, Perekrestok, and Chizhik retail chains, reported adjusted EBITDA growth of 21.5% during the quarter.
Operating profit for the period increased 18.3% year on year, while operating profit margin declined 29bp to 5.1%.
Divisional Performance
Net sales in the company's digital business grew by 73.6% year on year, accounting for approximately 5% of the consolidated revenue for the quarter.
In addition to express delivery, X5 offers a range of digital services, including the online hypermarket, Vprok.ru; the 5Post delivery service; and the readymade-meal service Mnogo Lososya.
The Pyaterochka banner saw year-on-year revenue growth of 22.7% during the quarter and accounted for a major share of X5’s revenue in this period.
Supermarket banner Perekrestok, posted revenue growth of 18.6% and like-for-like sales growth of 16.1% during the quarter, joining Pyaterochka as one of the two key drivers of X5’s overall LFL sales growth of 14.9% year on year.
The company's hard discount chain Chizhik reported revenue growth of 113.6% in the second quarter with its total selling space as of the end of June more than double than a year ago
First-Half Performance
X5 Group's revenue in the first six months increased 26%, while adjusted EBITDA increased 28% year on year.
Operating profit grew 38% in this period, with margin up 30bps to 4.4%.
Chief executive officer, Igor Shekhterman, stated, “During the first half of 2024, we pushed forward with our strategic focus on strengthening our retail offering by actively expanding X5’s proximity store and hard discounter networks, as well as making our supermarket experience stand out even more vis à vis our competitors.”
