X5 Retail Group has posted a 50% leap in first-quarter profits on the back of store openings and increased consumer spending.
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X5, Russia’s largest supermarket chain, was created last year through the merger of Russian grocery chains Pyaterochka and Perekriostok. The company said today (29 May) that profits rose to US$301.5m.
The group added 32,363 square metres of selling space in the quarter, raising its total store count to 512 Pyaterochka discount supermarkets in Russia and 169 Perekrestok stores in Russia and Ukraine.
“We enjoyed an increase in gross margins across both chains due to the continued effort of our purchasing team, upgraded logistics capacity in the core Moscow region, and progress in the introduction of private labels,” CEO Lev Khasis commented.
Same store sales rose 21% during the period. Revenue for the quarter was up 45% to $1.1bn, X5 said. Revenue at Pyaterochka increased 41% to $629m and sales at Perekrestok were up 50% to $486m.
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