RUSSIA: X5 Retail H1 LFL sales fall
- Like-for-like sales drop 2.5%
- LFL pressure eases in Q2
- Sales at soft discounters improve
X5 attributed the increase in net retail sales to an increase in promo-activities and marketing campaigns
Russian retailer X5 Retail Group has reported a fall in half-year sales, although there are signs its performance could be improving.
In the six months to the end of June, like-for-like sales dropped 2.5%. However, the decline in like-for-like sales eased in the second quarter. Like-for-likes were down 1.1% in the April-June quarter, compared to a decrease of 3.9% in the first three months of the year.
X5, Russia's largest retailer by sales, said its half-year group sales increased 7.2% to RUR240.32m (US$7.35bn).
Second-quarter sales were up 10%. X5 pointed to an increase in promo-activities and marketing campaigns, improvement in availability, improved like-for-like results at soft discounters and the performance of maturing stores added over the past two years, including former Kopeyka stores.
X5 this morning announced the immediate departure of its CEO Andrei Gusev.
X5 RETAIL GROUP REPORTS Q2 & H1 2012 TRADING RESULTS (1)
Amsterdam, 13 July 2012 - X5 Retail Group N.V. ("X5" or the "Company"), Russia's largest retailer in terms of revenue (LSE ticker: "FIVE"), announced today the Company's preliminary consolidated net retail sales and operational performance for the second quarter (Q2) and first half (H1) of 2012.
Q2 2012 Highlights
· Consolidated net retail sales (sales) increased 10.0% year-on-year (y-o-y) in Rouble (RUR) terms to RUR 123,446 million (mln);
· Sales increased y-o-y by 11.1% due to organic expansion, which was offset by a 1.1% decrease in LFL sales;
· Soft discounters LFL sales increased by 2.1% y-o-y;
· In June 2012, total LFL sales increased by 2.9%, driven by a 6.5% increase in soft discounters LFL sales;
· 159 stores were added on a net basis, including the opening of 148 soft discounters, four supermarkets, 19 convenience stores and 12 store closures;
· Net addition of 50 thousand square meters (sq. m.) of selling space.
H1 2012 Highlights
· Sales increased by 7.2% y-o-y to RUR 240,325 mln;
· Sales increased y-o-y by 9.7% due to organic expansion, which was offset by a 2.5% decrease in LFL sales;
· 296 stores were added on a net basis, including the opening of 274 soft discounters, 11 supermarkets, 35 convenience stores and 24 store closures;
· Net addition of 93 thousand sq. m. of selling space.
Original source: X5 Retail
Russian retailer X5 Retail Group's bottom line improved in the third quarter year-on-year - but its sales slid and operating profit fell....
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