Russian grocer X5 Retail Group has posted an increase in first-half sales, thanks to to a “healthy” performance from its soft discount stores and supermarkets and the contribution from the Kopeyka stores it acquired at the end of last year.
The retailer said today (8 July) that consolidated net retail sales for the half ended 30 June rose 44% to RUB22.1bn (US$791.5m). Organic sales were up 27%, while Kopeyka contributed approximately 17 percentage points of the company’s net sales growth. On a like-for-like basis, sales increased 11%.
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For the second quarter, net sales rose 41% to RUB112.2bn, while organic sales increased 25%. The retailer said that Kopeyka contributed 16 percentage points of X5’s consolidated second-quarter sales growth. Like-for-like sales for the quarter climbed 18%, driven by a 9% increase in traffic.
“X5 delivered RUR consolidated net retail sales growth of 41% year-on-year for the second quarter 2011, on the back of healthy organic performance at soft discounters and supermarkets and the contribution from acquired Kopeyka stores,” said CEO Andrei Gusev.
“Compared to the first quarter of 2011, Russian retail market sequential growth slowed somewhat in Q2 2011 as consumer income declined in real terms. We expect this trend to continue in Q3 2011, after which we expect stronger consumer demand in the fourth quarter. X5 achieved its objectives to maintain price leadership alongside managing supplier inflation to protect margins.”
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By GlobalData
