X5 Retail Regulatory News (FIVE)

3 Nov 2006 07:53

X5 Retail Group N.V.03 November 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN 3 November 2006 X5 RETAIL GROUP N.V. ANNOUNCES 9M 2006 PRO-FORMA MANAGEMENT ACCOUNTS group pro forma Sales of US $2,411 million, Up +45.0% vs. 9M 2005 Amsterdam, 3 November 2006 - X5 Retail Group N.V., Russia's leading groceryretailer, today announced its consolidated management accounts for 9 months of2006 on a pro-forma basis. Net sales increased by 45% to US $ 2,411 millionenjoying predominantly positive dynamics through whole existing chains. Theincrease of Gross profit by 55,8% to US $ 646 million, and gross margin from24.9 % to 26.8% were driven mostly by positive front margin evolution andimproved back margin collection due to integration efforts and despite ofalcohol shortages this summer. The Supervisory Board approved on November 2nd the employee stock option programrestructuring plan resulting in one-off charge of around US $ 60 million againstthe company's profits this year, which was fully reflected in 9M financialmanagement accounts. 9M 2006 Financial Highlights Pro Forma X5 Retail Group N.V. (Pyaterochka Holding N.V.) Calculated on the basis of the results of both the Pyaterochka and Perekrestokchains from 1 January - 30 September 2006 • Net Sales of US $2,411 million; up 45.0% vs. 9M 2005 • Gross profit of US 646 million; up 55.8% vs. 9M 2005; Gross margin of 26.8% • EBITDA excluding ESOP costs of US $237 million; up 60,81 % vs. 9M 2005; EBITDA margin of 9,8% • Total EBITDA of US $175 million;up 18.7%1 vs. 9M 2005; EBITDA margin of 7.3% • Net profit of US $52 million; down 37.01% vs. 9M 2005; Net margin of 2.2% Pyaterochka chain stand-alone Calculated on the basis of the results of the Pyaterochka chain from 1 January -30 September 2006 • Net Sales of US $1,374 million; up 43.3% vs. 9M 2005 • Gross profit of US $357 million; up 52.6% vs. 9M 2005; Gross margin of 26.0% • EBITDA excluding ESOP costs of US $163 million; up 47.0% vs. 9M 2005; EBITDA margin of 11,8% • Total EBITDA of US $101 million; down 9.0% vs. 9M 2005; EBITDA margin of 7.3% Perekrestok chain stand-alone Calculated on the basis of the results of the Perekrestok chain from 1 January -30 September 2006 • Net Sales of US$1,037 million; up 47.3% vs. 9M 2005 • Gross profit of US $289 million; up 59.8% vs. 9M 2005; Gross margin of 27.9% • EBITDA of US $74 million; up 34.0% vs. 9M 2005; EBITDA margin of 7.2% Vitaliy Podolskiy, Group CFO, commented, "We are pleased to present today astrong set of consolidated financial results for 9 months of 2006, whichstrengthen our confidence about positive trends of the Enlarged Group's progressfollowing the merger of two leading retail chains in May this year." Analyst and Investors Conference Call There will be a conference call today for analysts and investors at 15:00 Moscowtime (07:00 EST/12:00 UK time) hosted by Vitaliy Podolskiy, Group CFO, todiscuss the audited 1H 2006 results and 9M management accounts. Friday, 3 November 2006 07:00 EST/12:00 UK time /15:00 Moscow time Participant access number(s): UK Toll: +44 (0)20 7138 0808 Russia Toll: +7 495 545 0588 USA Toll: +1 718 354 1158 Replay service available until midnight (UK time) on 7th November: UK Toll : +44(0)20 7806 1970 USA Toll : +1 718 354 1112 Russia Toll Free: 810 800 2501 1012 Replay passcode: 4683350# Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of30 September 2006, the group had 420 company-managed "Pyaterochka" soft discountstores located in the Moscow (199), St. Petersburg (199) and Yekaterinburg (22)areas, and 141 company-managed "Perekrestok" supermarkets across Central Russiaand Ukraine, including 81 stores in Moscow. As of 30 September 2006, franchisees operated 539 Pyaterochka branded storesacross Russia, in Ukraine and Kazakhstan. Perekrestok has 10 convenience storesoperated by franchisees in the Moscow area. 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. The Group's pro forma net sales for the 9 months of 2006 were US $2,411 million(management accounts). During 1H 2006, the Pyaterochka chain provided US $1,374million of net sales, while the Perekrestok chain contributed US $1,037 millionof net sales. - End - Enquiries to: X5 Retail Group N.V. Gennady Frolov Head of Corporate Communications Office +7 495 984 6956 ext.2093 Mobile +7 495 724 6414 Email gennady.frolov@x5.ru -------------------------- 1 For comparability excludes the capital gain of USD $19 million on the sale ofTushino Plaza in 2005 This information is provided by RNS The company news service from the London Stock Exchange