Russian retailer X5 has booked a 32% drop in net profit for the first quarter as depressed consumer sentiment left sales flat.

In an announcement today (17 May), X5 said that net profit fell to US$66.3m, down from $96.9m in the comparable period of last year. The company’s net profit margin stood at 1.7%, down from 2.5% last year.

EBITDA amounted to $274m in the period, or 7.1% of total net sales, down from $281.1m, or 7.3% of sales last year.

Sales were 0.7% up to $3.87bn, the group added, with the biggest losses seen at X5’s hypermarket business, where total sales were down 10.3%, and online, where sales plummeted 86.8%. However, the company revealed that its convenience business had seen sales growth of 31.7% in the three months.

In April, X5 revealed that it had missed sales forecasts with like-for-like sales down 3.9%, year-on-year. The retailer blamed an under-investment in advertising for the drop.

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