Impairment charges meant X5 filed loss in 2012

Impairment charges meant X5 filed loss in 2012

X5 Retail Group, Russia's largest retailer by sales, has reported an annual loss of over US$126m after impairment charges hit its bottom line.

The company posted a loss of $126.5m for 2012 after booking impairment costs of $467m on "non-performing assets" and its Kopeyka discount chain. The charges also hit X5's operating profit, which fell 72.7% to $191.4m.

X5 did increase its sales in 2012. Net sales were up 2.2% at $15.8bn thanks to higher sales at its soft discount stores, its largest business. Sales at supermarkets were flat, although sales at X5's hypermarkets dropped 12.8%. X5's convenience business, its smallest division, were higher.

On a like-for-like basis, sales at soft discount stores were up 0.5% but fell at X5's supermarkets and hypermarkets. Like-for-like sales at the retailer's convenience stores were up 10.8%.

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