Dixy posts 1H 2010 net profit of $2.5 million

Russian grocery retail chain Dixy has posted a 1H 2010 net profit of $2.5 million under IFRS.

The bottom line is up 183.0% year on year from a net loss of $2.99 million in 1H 2009 while EBITDA grew 27.3% year on year to $56.4 million, on a 26.7% increase in sales to $1.1 million from $809 million in 1H 2009.

The company attributed the sales revenue increase to an increase in LFL segment sales by 5% mainly on the back of the 4.4% increase in customer traffic on the back of higher levels of customer service, and more aggressive promotional and advertising activity in the 1H 2010.

The report says that the growth in revenue and decrease in SG&A costs as a percentage of revenue by 1.4% to 23.2% was due to the successful implementation of initiatives to tighten control over multiple cost-centers and business processes and an increase in the efficiency of the overall operation.