X5 Retail Group, Russia's largest food retailer, saw annual profits jump by over a third in 2007 as the company's strong performance continued into the last three months of the year.

The retailer booked net profit of US$141m, a rise of 38% on the year. Fourth-quarter net profit reached $87m, an increase of 32%.

Net sales soared 53% to $5.3bn, thanks in part to contributions from local retailers acquired last year. Like-for-like sales climbed 20%.

"2007 was a very successful year for X5 in terms of sales and market share growth," said CEO Lev Khasis.

Sales rose across X5's retail formats. The company pinpointed a "very strong performance" from its soft discount stores.

X5 was formed in 2006 after the merger of soft discounter Pyaterochka and supermarket chain Perekrestok.

In January, X5 became Russia's first retailer to be named as one of the world's largest 250 retailers, according to a report by Deloitte Touche.