X5 Retail Group, Russia’s largest retailer by sales, plans to spend RUB18bn (US$619.2m) on expansion this year after meeting its revenue target last year.
CEO Lev Khasis said X5 had responded “quickly” and “effectively” during a “tough” year for the Russian economy and had outperformed its local rivals.
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“We met our 25% pro forma revenue growth target for 2009 and posted a 10% increase in like-for-like sales, the highest of any Russian retailer,” Khasis said.
“For 2010, we expect to step up store expansion and infrastructure development with investments of up to RUB18bn. I am confident that X5 is in an excellent position to drive growth and efficiency this year while positioning the company to benefit from future economic recovery.”
Khasis’s comments came as X5 posted consolidated net sales of RUB276.54bn, a jump of 33%. On a pro-forma basis, which saw X5 include the results of the Karusel business it acquired in June 2008 from the start of the year, sales were up 25%. When measured in US dollars, sales dipped 2% to US$8.72bn.
X5 booked a net profit of $165.4m for 2009, against a pro-forma net loss of $2.15bn in 2008, which including Karusel’s results from the start of that year.
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By GlobalData
