X5 Retail Regulatory News (FIVE)

31 May 2006 07:13

Pyaterochka Holding N.V.31 May 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN 31 May 2006 Pyaterochka and Perekrestok Announce Q1 2006 Financial Results Pyaterochka and Perekrestok plan to publish their first consolidated groupfinancials for 1H 2006 in September. The following provides an update onQ1 2006 performance for both Pyaterochka and Perekrestok, reportingindependently. The figures for Pyaterochka Holding N.V. for Q1 2006 are forPyaterochka as a stand-alone business. The merger of Pyaterochka and Perekrestok closed on 18 May 2006. The newmembers of the Management and Supervisory Boards were approved by shareholdersat the Extraordinary General Meeting on 12 May 2006, including the appointmentof Mr Lev Khasis as Group Chief Executive Officer and Mr Vitali Podolski asGroup Chief Financial Officer. The company has already begun work on integration plans, and management isconfident that results of the joint work of both operating companies will bevisible as early as the full year 2006 results. Pyaterochka Holding N.V. will publish an update on Q2 2006 trading, includingnet consolidated sales, store openings, and LFL sales data for both operatingcompanies at the end of the quarter. Combined, consolidated results for Pyaterochka Holding NV (including both thePyaterochka and Perekrestok businesses) for 1H 2006 will be released inSeptember 2006. There are certain differences between accounting policies adopted by PyaterochkaHolding NV and Perekrestok Holding Ltd, which do not significantly affect thepresentation of the financial statements. PYATEROCHKA HOLDING N.V. Summary Q1 2006 Financials: • Net Sales of USD 438.9 million, up 41% vs. Q1 2005 • Gross profit of USD 108.7 million, up 54% vs. Q1 2005 • Gross margin of 24.8% • EBITDA of USD 47.0 million, up 30% vs. Q1 2005 • EBITDA margin of 10.7%, including cost of stock option programme (implied EBITDA margin of 12.0%, before cost of stock option programme) • Net Income of USD 21.2 million, down 5% vs. Q1 2005 • Profit margin of 4.8% Store Openings: Pyaterochka's store opening program continues on track with 26 new stores openedduring Q1 2006, of which 18 where in Moscow and 8 in St. Petersburg. Of the18 new stores opened in Moscow, 13 of these were rebranded stores acquired fromSRT (Kopeika franchisee) in December 2005. An update on Pyaterochka's Q2 2006 store openings will be provided at the end ofthe quarter. Pyaterochka intends to open 130 new company-managed stores in 2006. Like-for-Like Trading Update: During Q1 2006 Pyaterochka experienced LFL sales of +7% for the Group. InMoscow, LFL sales reached +15% during Q1 2006, with +3% traffic and +12% basket.In St. Petersburg, LFL sales were -1% in Q1 2006, with -8% traffic and +8%basket. An update on Pyaterochka's Q2 2006 LFL sales trends will be provided at the endof the quarter. PEREKRESTOK HOLDINGS LTD Summary Q1 2006 Financials: • Net Sales of USD 323.4 million, up 45% vs. Q1 2005 • Gross profit of USD 91.9 million, up 55% vs. Q1 2005 • Gross margin of 28.4% • EBITDA of USD 22.8 million, up 70% vs. Q1 2005 • EBITDA margin of 7.1% • Net Income of USD 11.0 million, up 36% vs. Q1 2005 • Profit margin of 3.4% Store Openings: Perekrestok's store opening program continues on track with 6 new supermarketsand 1 new city hypermarket opened during Q1 2006, representing 19,750 new squaremetres of selling space. An update on Perekrestok's store openings during Q2 2006 will be provided at theend of the quarter. Perekrestok intends to open 40 new stores by the end of 2006, representingapproximately 60,000 square metres of additional selling space. Like-for-Like Trading Update: During Q1 2006 Perekrestok experienced LFL sales of +15%. Like-for-like salesat Moscow-area Perekrestok stores increased by +12% during Q1 2006. An update on Perekrestok's Q2 2006 LFL sales trends will be provided at the endof the quarter. PYATEROCHKA HOLDING N.V.CONSOLIDATED INCOME STATEMENTFor the three months ending 31 March 2006 and 2005 31.03.06 31.03.05 USD mln USD mln REVENUE 438.9 311.8 COST OF SALES (330.2) (241.2) GROSS PROFIT 108.7 70.6 Selling, general and administrative expenses (69.0) (39.4) OPERATING PROFIT 39.7 31.2 Finance costs, net (7.4) (1.3)Foreign currency exchange gain/(loss) 1.4 (0.2) PROFIT BEFORE INCOME TAX 33.7 29.7 INCOME TAX (12.5) (7.3) NET PROFIT 21.2 22.4 Earnings per share attributable to the equityholders, USD per share:Basic 0.55 0.58Diluted 0.53 0.58 PYATEROCHKA HOLDING N.V.CONSOLIDATED BALANCE SHEETAs of 31 March 2006 and 31 December 2005 31.03.06 31.12.05 USD mln USD mlnASSETS NON-CURRENT ASSETS: Property, Plant & Equipment 466.5 421.0Long-term prepayments 7.6 7.3Goodwill 123.6 46.8Other long-term assets - 9.0Deferred Tax Assets 6.5 7.0 604.2 491.1CURRENT ASSETS:Inventories 60.1 55.5Receivables and prepayments 83.9 64.9Cash 20.4 56.5 164.4 176.9 TOTAL ASSETS 768.6 668.0 EQUITY AND LIABILITIES CAPITAL AND RESERVES:Share capital 37.4 45.5Share premium 6.2 6.0Retained earnings 180.9 144.3 224.5 195.8 NON-CURRENT LIABILITIES: Long-term borrowings 244.2 220.0 Long-term liability for share based payments 11.3 5.4 Long-term obligations under finance leases 4.2 3.8 Deferred tax liability 17.9 16.2 277.6 245.4 CURRENT LIABILITIES:Trade accounts payable 178.2 177.9Short-term loans and overdrafts 23.0 6.8Short-term obligations under finance leases 2.1 1.7Other payables and accrued expenses 63.2 40.4 266.5 226.8 TOTAL EQUITY AND LIABILITIES 768.6 668.0 PYATEROCHKA HOLDING N.V.CONSOLIDATED STATEMENT OF CASH FLOWSFor the three months ending 31 March 2006 and 2005 31.03.06 31.03.05 USD mln USD mlnOPERATING ACTIVITIES:Profit before income tax 33.7 29.7Adjustments for:Depreciation of property, plant and equipment 7.3 4.9Change in provision for doubtful receivables 0.4 (0.3) Change in provision for inventory losses - (0.1) Share-based payment expense 5.9 Interest expense 7.4 1.2Operating cash flow before movements in working capital 54.7 35.4 (Increase)/decrease in receivables and prepayments (16.4) 4.2 Increase/(decrease) in inventories (4.6) 7.9 Increase/(decrease) in trade accounts payable 0.4 (5.5) Increase/(decrease) in other payables and accrued expenses 21.0 (9.5)Cash provided by operations: 55.1 32.5 Income tax paid (5.4) (5.5) Interest paid (1.9) (1.3) Net cash provided by operating activities 47.8 25.7 PYATEROCHKA HOLDING N.V.CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)For the three months ending 31 March 2006 and 2005 31.03.06 31.03.05 USD mln USD mlnINVESTING ACTIVITIES Purchase of property, plant and equipment (32.2) (19.5) Financing provided to related party - (2.7) Acquisition of subsidiaries (73.0) -Net cash used in investing activities (105.2) (22.2) FINANCING ACTIVITIES Proceeds from borrowings 32.8 9.1 Repayments of borrowings (8.0) (20.4) Net increase/(decrease) in bank overdrafts 3.5 (1.5) Repayment of obligations under finance lease (0.4) 0.2 Net cash provided by/(used in) financing activities 27.9 (12.6) EFFECT OF FOREIGN EXCHANGE RATES ON CASH (6.6) 2.3 NET INCREASE IN CASH (36.1) (6.8) CASH, beginning of period 56.5 14.7CASH, end of period 20.4 7.9 Appendix 1 Below are the management accounts of Perekrestok Holdings Ltd: PEREKRESTOK HOLDINGS LTDPROFIT AND LOSS STATEMENTFor the three months ending 31 March 2006 and 2005 31.03.06 31.03.05 USD mln USD mln SALES 323.4 222.7 COST OF GOODS SOLD (231.5) (163.3) GROSS PROFIT 91.9 59.4 Other income 5.8 4.2 OPERATING EXPENSES (74.9) (50.2) EBITDA 22.8 13.4 Net foreign exchange gain (loss) 2.8 0.3Depreciation and amortization (7.7) (4.5) EBIT 18.0 9.2 Finance costs (3.6) (2.2)Income tax expense - current and deferred (3.4) 1.1Minority interest 0 0 NET PROFIT 11.0 8.1 PEREKRESTOK HOLDINGS LTDBALANCE SHEETAs of 31 March 2006 and 31 December 2005 31.03.06 31.12.05 USD mln USD mlnASSETS NON-CURRENT ASSETSProperty, Plant and Equipment 353.5 324.6Intangible assets 44.1 43.2Other non-current assets 9.6 9.5 Total non-current assets 407.2 377.3 CURRENT ASSETS: Inventories 66.5 68.6Trade and other accounts receivable 90.0 83.6Cash and cash equivalents 16.4 30.1 Total current assets 172.9 182.3 TOTAL ASSETS 580.1 559.5 SHAREHOLDERS' EQUITY AND RESERVESShare capital 0.03 0.03Additional paid in capital 122.2 122.2Cumulative translation reserve 12.3 5.7Retained earnings 65.1 54.1 Total equity and reserves 199.6 182.0 NON-CURRENT LIABILITIESBorrowings 145.7 144.1Deferred tax liabilities (net) 15.2 16.7Other non-current 0.0 0.1 Total non-current liabilities 160.9 160.9 CURRENT LIABILITIESTrade and other accounts payable 147.1 143.8Borrowings 55.1 52.6Taxes payable 17.4 20.2 Total current liabilities 219.6 216.6 TOTAL LIABILITIES 380.5 377.5 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 580.1 559.5 PEREKRESTOK HOLDINGS LTDSTATEMENT OF CASH FLOWSFor the three months ending 31 March 2006 and 2005 31.03.06 31.03.05 USD mln USD mln Profit before tax: 14.3 7.1Adjustments for:Depreciation and amortisation 7.7 4.5Loss / (gain) on disposal of property, plant and equipment 0.1 0.0Inventory shrinkage 4.0 2.2Finance costs 3.6 2.2Net foreign exchange loss (2.8) (0.3)Net cash from operating activities before changes in 26.9 15.5working capital Increase in trade and other accounts receivable (3.4) (9.6)(Increase) / decrease in inventories (1.9) 1.8Decrease in trade and other accounts payable (3.9) (10.3)Translation effect on working capital (0.6) 0.3Cash from / (used in) operations 17.1 (2.3) Interest paid (2.3) (0.3)Interest received 0.1 0.1Income tax paid (3.1) (0.6)Net cash from operating activities 11.8 (3.1) Cash flows used in investing activitiesPurchase of property, plant and equipment (24.7) (31.6)Proceeds from sales of property, plant and equipment 0.1 0.2Acquisition of subsidiaries 0.0 (0.7)Purchase of intangible assets 0.0 0.0Net cash used in investing activities (24.7) (32.1) Cash flows used in financing activitiesProceeds from short-term loans 0.0 27.2Repayment of long-term loans 0.0 (7.5)Repayment of short-term loans (0.8) (15.5)Net cash from financing activities (0.8) 4.2 Effect of exchange rate changes on cash and cash 0.0 0.1equivalentsNet decrease in cash and cash equivalents (13.7) (30.9) Movements in cash and cash equivalentsCash and cash equivalents at the beginning of the period 30.1 52.6Cash and cash equivalents at the end of the period 16.4 21.7 Note to Editors: Pyaterochka Holding N.V. is Russia's largest food retailer in terms of sales.The group has 371 company-managed "Pyaterochka" soft discount stores located inthe Moscow (177), St. Petersburg (175) and Yekaterinburg (19) areas, and 127company-managed "Perekrestok" supermarkets across 14 regions of Central Russiaand Ukraine as of 31 March 2006. Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 tocreate the clear leader in the Russian food retail market. Pyaterochka's 2005 net sales (pre-merger) reached USD 1,359 million, with grossbanner sales in 2005 of over USD 2 billion. Perekrestok net sales reached USD1,015 million in 2005. Pyaterochka's Q1 2006 net sales (pre-merger) reached USD 439 million, andPerekrestok Q1 2006 sales were USD 323 million. As of 31 March 2006, franchisees operated 439 Pyaterochka branded stores in 15regions of Russia, Ukraine and Kazakhstan. Pyaterochka currently has masterfranchise agreements in 20 regions of Russia, Ukraine and Kazakhstan.Perekrestok has 9 convenience stores operated by franchisees in the Moscow area. - End - Enquiries to: Pyaterochka Holding NV Tanja Djurdjevic Investor Relations Tel +7 495 724 6414 Email ir@e5.ru This information is provided by RNS The company news service from the London Stock Exchange