Russian retail giant X5 has reported a strong H1 performance.
The group's gross profit margin in Q2 and H1 2015 amounted to 24.1 per cent and 24.3 per cent respectively.
Net retail sales in H1 grew by 27.3 per cent year-on-year, impacted by strong like-for-like performance of the stores despite decelerating food inflation in Russia, increased traffic in existing Pyaterochka stores, and in Karusel hypermarkets after adjustments to address changing market conditions with a better offering and enhanced store operations, and solid selling space expansion of 23.9 per cent year-on-year.
Commenting about its results, Stephan DuCharme, CEO of X5 said, “In the first half of 2015, we demonstrated our ability to accelerate our business, achieving record levels of organic growth while also maintaining a comfortable level of profitability, thus ensuring we are well placed to finance our continued development."
The key drivers of this growth included improved value propositions across all three store formats, strong performance of stores operating under their new concepts, and a substantial increase in total selling space, he said.
“We have entered the second half of the year with considerable momentum, and I believe we will be able to continue to deliver profitable growth going forward. The success we have enjoyed to date underlines that we have the right strategy for our multi-format business, which is focused on serving all segments of the consumer market. This strategy is proving to be effective even in the current external environment."
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