RUSSIA: X5 posts profit jump
Russia's largest retailer by sales X5 Retail has posted a jump in second quarter net profit, which rose from US$14m last year to US$74.4m.
Profits were boosted by an increase in revenues and cost control measures, the company said in its earnings release issued today (29 August).
Revenue was up 60% in the quarter, rising to $1.98bn. EBITDA climbed 81% to $190.4m and EBITDA margin inproved to 9.6% from 8.4%.
"Whilst our continual investment in prices and customer loyalty resulted in increased sales volumes, our cost control policy has enabled us to enhance profitability," said X5 Retail CFO Evgeny Kornilov.
"We will maintain our focus on efficiency, and our key task for the rest of the year is to ensure smooth integration of Karusel and improvement of its operational and financial performance," he continued.
Looking to the full year, X5 said it anticipates a 40% increase in sales on a pro forma basis. The company expects EBITDA margins to be in the range of 8.4-8.6%.
The news that Carrefour may soon be joining the growing ranks of international retailers in Russia will have come as little surprise to observers of a rapidly-developing retail market. According to a ...
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