Russia’s largest retailer X5 Retail Group saw net profit fall 81% in its second quarter to US$24.9m which it attributed to a foreign exchange loss.

Net sales increased 17% year over year for the quarter ended 30 June to reach RUB79.85bn in rouble terms, or up 25% in US dollar terms to US$2.64bn.

EBITDA reached $220m a 20% increase on the previous year.

For the first half, the company posted a 115% increase in net profit to reach $103.8m, while net sales were up 30% to reach $3.98bn.

The company said it is maintaining its forecasts for the full year and that while it is seeking permission to acquire the Kopeika and Ostrov chains, the applications do not imply the transactions will be pursued, agreed or completed.

CEO Lev Khasis said: “Discounters again led the industry in net sales and like-for-like sales growth, hypermarkets’ results were positive while supermarkets are still hampered by trading down trends and we are positioning the format for an upturn to benefit from future economic recovery. X5 is driving positive business momentum – with increased market leadership, stepped up pace of new store openings, completion of Paterson integration and continuous focus on quality, convenience and value for customers – giving us confidence in our outlook for the year.”

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