X5 Retail Group today (27 August) booked a 68% drop in net profits in dollar terms, despite posting sales gains that outpaced its peers.
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Net profits fell to US$48.3m in the first half, down from $152.9m in the comparable period of last year, as the weakness of the Russian rouble hit profits in dollar terms.
However, consolidated net sales at Russia’s largest retailer increased 46% year-on-year in rouble terms to RUB131.5bn. In dollar terms, sales rose 6% in US$3.98bn.
“In the first half of the year X5 delivered the highest like-for-like sales growth among Russian peers thanks to our “close-to-the-customer” approach and flexibility of X5’s multi-format business model,” said CEO Lev Khasis.
X5 is focusing on fine-tuning its formats to “achieve clear distinction between value propositions and ensure long-term multi-format success”, with current proirities centred around developing a private-label offering, Khasis added.
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By GlobalData
