icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

X5 posts 1Q 2011 net profit of $97 million

X5 posts 1Q 2011 net profit of $97 million
Russian retail group, X5, has posted a 1Q 2011 net profit of $97 million under IFRS.

The net result is up 23% year on year, with 1Q EBITDA climbing 57% year on year to $281.1 million, on the back of a 51% year on year jump in net sales to $3.845 billion.X5 noted a 12% increase in like for like sales, with a 17% increase from organic store expansion, coupled with supermarkets experiencing a 9% increase in traffic and 10% basket increase, with consumers moving upmarket as Russia’s economic rebound continued to take hold.X5 Retail Group CEO, Andrei Gusev, highlighted thestepped up organic growth, along with the fast tracked integration of the Kopeika chain purchased in 2010, which will see 650 former Kopeyka stores rebranded in 2011 with sales traffic and margin improvements to Pyaterochka levels expected by 2012. He also reiterated plans to continue X5’s focus on organic growth. “We are focused on organic growth with plans for opening approximately 540 stores this year. Organic performance in the first quarter benefited from new stores and LFL sales at discounters and a strong recovery in supermarkets thanks to trading up by consumers.”X5 CFO Kieran Balfealso noted that the improved fiscal outlook would see the Group working quickly to restructure its financial position.“We are focused on strengthening cash generation through a combination of top-line growth, operational efficiency and working capital improvement. Our objective is to optimize operating cash flows which will help to fund our CAPEX program and gradually de-risk the balance sheet, and we expect substantial progress on these areas by the end of 2011.”

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.