RUSSIA: Dixy Q3 profits climb
- Net profit climbs 7.2%
- Operating profit up 1.4%
- Net sales grows 11.9%
In the first nine months of the year, Dixy opened 224 stores
Russian retailer Dixy has booked an increase in profit in the third quarter of the year.
Earnings in the three months to the end of September amounted to US$8.7m, a 7.2% increase on the prior year period. Operating profit climbed 1.4% year-on-year to $30.2m.
Operating margin, however, dropped by 30 bp to 2.7% of sales as a result of a 5.6% decline in EBITDA margin and an increase in expenses related to the acquisition of rival Victoria.
Revenues grew 11.9% year-on-year to $1.1bn, driven mainly by store openings and 5.7% like-for-like sales growth in the quarter. Dixy neighborhood stores revenue was the main driver of growth, which increased by 28.7% to $745.9m.
In the first nine months of the year, Dixy opened 224 stores, almost doubling of the number of openings compared to the same period last year. The retailer did not give a number for the third quarter alone.
DIXY GROUP DEMONSTRATES STRONG REVENUE GROWTH AND SOLID
GROSS MARGIN IMPROVEMENT IN THE FIRST NINE MONTHS OF 2012
Moscow, December 03, 2012
DIXY Group (RTS, MICEX: DIXY) - one of Russia's leading retailers of foods and everyday products - today announced unaudited consolidated IFRS results for the first nine month and the third quarter of 2012.
Key Highlights for the Third Quarter and First Nine Months of 2012
In the first nine month of 2012, the Company opened 258 new stores in Central, North-West and Urals Federal Districts, and increased the selling space by 23% year-on-year to 461,608 sq.m. As of September 30, 2012, the
Company operated 1,343 stores.
Consolidated Revenue increased by 23.3% (11.9% in USD) year-on-year to RUR 35.9 bln (USD 1.1 bln) in the third quarter, and by 56.3% (44.6% in USD) year-on-year to RUR 106.7 bln (USD 3.4 bln) in the first nine months of 2012.
Consolidated Gross Profit grew by 30.3% (18.2% in USD) year-on-year to RUR 10.5 bln (USD 328.2 mln) in the third quarter, and by 68.8% (56.1% in USD) year-on-year to RUR 30.4 bln (USD 977.2 mln) in the first ninemonths of 2012.
Gross Margin improved by 160 bp year-on-year to 29.3% of sales in the third quarter, and by 210 bp to 28.5% of sales in the first nine months of 2012.
Consolidated EBITDA increased by 16.3% (5.5% in USD) year-on-year to RUR 2.0 bln (USD 62.5 mln) in the third quarter, and by 46.7% (35.7% in USD) to RUR 6.2 bln (USD 199.8 mln) in the first nine months of 2012.
Consolidated Operating Profit grew by 11.8% (1.4% in USD) year-on-year to RUR 965.0 mln (USD 30.2 mln) in the third quarter, and by 41.1% (30.5% in USD) year-on-year to RUR 3.2 bln (USD 103.1 mln) in the first nine months of 2012.
Consolidated Net Profit increased by 18.1% (7.2% in USD) year-on-year to RUR 280.0 mln (USD 8.7 mln) in the third quarter of 2012. Consolidated Net Profit amounted RUR 781.0 mln (USD 25.1 mln) in the first nine months of 2012 compared to RUR 787.0 mln (USD 27.4 mln) in the first nine months of 2011.
In the first nine months of 2012, the Company opened 224 stores on net basis, which means almost doubling of the store openings compared to the same period last year.
In November 2012, the Company successfully finalized ex-Victoria's neighborhood stores integration process.
For the first nine months of 2012, 73 ex-Victoria neighborhood stores were integrated into DIXY chain, out of which 65 stores were integrated in the third quarter, while 71 stores more were being integrated as of the end of September.
As of end of November 2012, all 144 stores scheduled for the integration were transferred into DIXY operational chain.
As a part of the neighborhood stores market repositioning strategy, the Company continued renovation of DIXY stores, improvement of their design and optimization of the floor space. For the first nine months of 2012, 47 DIXY stores were refurbished. As of December 1, 2012, 74 out of 76 stores scheduled for this year were modernized.
Original source: Dixy Group
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