Russia's X5 Retail Group has posted a 27.5% increase in revenue for the second quarter of the year, with sales tolling RUB 320,801 million.
This brings the retailer's total sales for the first half of the year to RUB 613,879 million, which represents a 27% increase compared to the same period in 2016.
The group's Pyaterouchka chain was the main driver of this grown, with net retail sales increasing by 31.9% year-on-year during the second quarter. X5 also saw growth at its Perekrestok and Karusel stores, but experienced a 13.7% decrease in sales at its Express convenience outlets.
Overall, EBITDA grew by 31.1% year-on-year, reaching RUB 27,833 million, and gross margin improved by 12 basis points to 23.9%.
Continued Growth
The company says that the growth in sales this quarter can be attributed to a 6.6% increase in like-for-like sales, and a 21.1% increase from new selling space.
X5 opened 689 new stores across Russia during the quarter, and as of 30 June 2017, it operated a total of 10,506 company-owned stores.
“We remain the fastest growing public retailer in Russia and are moving steadily towards achieving our long-term aim of having 15% of the food retail market in Russia by the end of 2020," said Igor Shekhterman, CEO of X5. "At the same time, we are growing while continuing to implement a customer centric approach, as we carefully adapt our value proposition to meet consumer needs."
“Looking ahead, I am confident that we can continue to outpace the market in terms of our growth, as we maximise performance across all three of our core formats, thanks to our efficient, decentralised business model.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
