Russian retailer Dixy Group has swung to a nine-month net loss as a result of foreign exchange losses and higher income tax costs.
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Dixy’s net loss for the nine months to the end of September reached RUR102m (US$3.1m) compared to a net profit of RUR243m last year.
The retailer’s bottom line was hit by a RUR290m income tax expense.
However, net sales amounted to RUR39.61bn, a rise of 14.5%. Thanks to the weak rouble, sales in US dollar terms dropped 15.2% to $1.22bn.
EBITDA increased by 12.3% year-on-year to RUR2.12bn, and in US dollars, dropped 16.8% to $65.4m.
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By GlobalDataPresident Ilya Yakubson said: “All-in-all, our nine months 2009 results are fully consistent with our plans and expectations. In the third quarter we started to implement a set of measures aimed at stimulating sales, including changes in pricing policies, special marketing campaigns, which allowed us to increase the number of purchases in our Dixy stores.”
Yakubson added: “We will continue to push forward in this direction, expanding our advertising and promo activities, optimising our assortment matrix, in order to drive-up the average check.”
