Russian retail titan X5 Retail Group said today (18 April) that annual profits last year only inched up 1.2% despite revenue rising by almost half.
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The London-listed group, Russia’s largest food retailer, reported audited results to international financial reporting standards.
On a pro forma basis, net sales soared by 49.6% to US$3.5bn. Net profit, however, reached US$103m, increasing by only 1.2% on the year.
X5 was created last year after a merger between discounter Pyaterochka and supermarket chain Perekryostok. CFO Vitaliy Podolskiy, said it was the first time since the merger that the company had posted consolidated results to IFRS standards.
Podolskiy said: “Strong financial results for the year of 2006 show that our integration efforts started in May 2006 translated into the first benefits from combined operations. We are looking with optimism into realization of our longer term strategic objectives.”
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By GlobalDataEarlier this month, X5 issued figures for the first three months of 2007. The company posted a 13% increase in first-quarter sales due to increased traffic and rising basket spend.
