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.
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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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