X5 Retail has booked a drop in first-quarter earnings

X5 Retail has booked a drop in first-quarter earnings

Russian retail giant X5 Retail has booked a drop in first-quarter earnings, hurt by higher finance costs.

Net profit in the three months to the end of March slipped to US$65.1m from $66.3m a year ago. Before tax, profit dropped 4.1% to $86.6m. Operating profit, however, was up 1.6% to $173.7m.

Net sales increased by 7.5% to $4.16bn, primarily due to an 8.1% year-on-year increase in net retail sales resulting from organic store additions, price inflation, the positive performance of maturing stores added over the past two years and on-going promotional activities.

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