RUSSIA: Forex hits Dixy Q1 profits

By: just-food.com | 2 June 2009

Russian retailer Dixy Group has posted a first-quarter net loss today, hurt by foreign exchange losses.

For the first three months of 2009, the company recorded a net loss of RUB789.7m (US$25.6m) compared to RUB166.1m in the previous year. In US dollars, the net loss stood at US$23.3m.

In roubles, sales climbed 19.2% to RUR13.28bn. In dollars, revenues fell 14.8% to US$391m.

President Ilya Yakubson said yesterday (1 June): "The result of the Q1 2009 operations is mainly due to the decreasing efficiency of the logistics function in central region, which, in combination, with a natural negative propensity of the purchasing power, has led to unsatisfactory levels of retail sales for the reporting period.

"Optimisation of the logistics function, unification of the IT platforms and reduction in shrinkage, are our main priorities today. We expect to see an increase in store service levels and a reversal in sales growth dynamic starting from the third quarter of 2009."

EBITDA for the period decreased 23.6% to RUB472m. In US dollars, EBITDA tumbled 45.5% to US$13.9m.

Sectors: Emerging markets, Retail

Companies: Dixy Group