X5 Retail Regulatory News (FIVE)

10 Apr 2007 07:02

X5 Retail Group N.V.10 April 2007 X5 Retail Group N.V. Q1 2007 trading UPdate Q1 2007 LIKE-FOR-LIKE SALES UP +13% FOR THE GROUP VS. Q1 2006 APPROXIMATELLY 32,000 SQ.M. OF NET SELLING SPACE ADDED DURING Q1 2007 Amsterdam, 10 April 2007 - X5 Retail Group N.V., Russia's largest food retailerin terms of sales (LSE ticker: "FIVE"), provided today a trading update on apro-forma basis including store opening data and Like-for-Like ("LFL") salestrends for the Pyaterochka and Perekrestok chains for Q1 2007. Expansion X5 Retail Group N.V. gained additional net selling space of 32,363 square metresin Q1 2007, of which 8,448 square metres for Perekriostok chain, and 23,915square metres for Pyaterochka chain. As of 31 March 2007, X5 Retail Group N.V.operated approximately 497,000 square metres of net selling space. In terms of numbers of stores, the Group opened 58 new Pyaterochka soft-discountstores and 4 new Perekrestok supermarkets during Q1 2007. 3 stores werere-branded from Perekrestok to Pyaterochka brand. As of 31 March 2007, X5 Retail Group N.V. operated 512 company-managedPyaterochka soft-discount stores and 169 Perekrestok stores. During Q1 2007, Pyaterochka's franchisees opened 16 new stores. As of 31 March2007, franchisees operated 533 Pyaterochka branded stores across Russia andKazakhstan. Perekrestok had 10 stores operated by franchisees in the Moscowarea. The Company completed re-branding and integration of all 17 Merkado stores,acquired in November 2006, of which 10 supermarkets were re-opened underPerekrestok brand and 7 soft-discounters - under Pyaterochka brand. FormerMerkado office and distribution center in Moscow has become a new corporate HQof X5 Retail Group to consolidate several leased office locations around Moscowduring H1-2007. In Q1 2007, the Group opened a new leased distribution centre of approximately20,000 sq.m in the Moscow region to service primarily Perekrestok stores, inline with the company's logistics strategy to increase the level ofcentralisation of store supply. Store opening progress (net selling space, sq.m.) in Q1 2007 Moscow St. Petersburg Russian regions Total Q1 Total as of and Ukraine 31.03.2007 Perekrestok 1,200 1,648 5,600 8,448 216,265 Pyaterochka 4,341 5,763 13,811 23,915 280,707 X5 5,541 7,411 19,411 32,363 496,972 Store Operations During Q1 2007, X5 Retail Group N.V. experienced strong Like-for-Like sales(1)trends across both chains, maintaining the positive Like-for-Like sales trendsof the previous quarters in Moscow, and showing continued improvement ofPyaterochka Like-for-Like sales performance in St. Petersburg with first everover last few years positive traffic indicator. LfL sales trends in Q1 2007 vs Q1 2006 Total Like-for-Like Traffic Basket Moscow: Pyaterochka 16% 12% 4% Moscow: Perekrestok 16% 15% 1% Moscow: X5 Retail Group 16% 13% 3% St. Petersburg: Pyaterochka 8% 2% 6% St. Petersburg: Perekrestok 17% 18% -1% St. Petersburg: X5 Retail Group 9% 3% 6% Regions: Pyaterochka 35% 17% 18% Regions: Perekrestok 2% 4% -2% Regions: X5 Retail Group 7% 8% -1% Total X5 Retail Group 13% 8% 5% Vitali Podolski, Group CFO, commented: "We are very pleased that all our brandshave shown strong operational performance on the back of successful integrationand positive macroeconomic factors. Both chains somewhat exceeded ourexpectations on LfL sales performance while staying firmly on track with newstore opening programme and completing Merkado integration ahead of time." - End - Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of31 March 2007, the Group had 512 company-managed "Pyaterochka" soft discountstores located in the Moscow (232), St. Petersburg (215) and other Russian areas(65), and 169 company-managed "Perekrestok" supermarkets across Central Russiaand Ukraine, including 99 stores in Moscow. As of 31 March 2007, franchisees operated 533 Pyaterochka branded stores acrossRussia and Kazakhstan. Perekrestok had 10 stores operated by franchisees in theMoscow area. Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 tocreate the clear leader in the Russian food retail market. The Group's pro forma net sales for the FY 2006 were $3,485 million, up +47% vs.2005 (preliminary management accounts). Pyaterochka chain provided US $1,973million of net sales, while the Perekrestok chain contributed US $1,512 millionof net sales. Forward looking statements: This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can beidentified by the fact that they do not only relate to historical or currentevents. Forward-looking statements often use words such as" anticipate","target", " expect", "estimate", "intend", "expected", "plan", "goal" believe",or other words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, a number of which are beyond X5Retail Group N.V.'s control. As a result, actual future results may differmaterially from the plans, goals and expectations set out in theseforward-looking statements. Any forward-looking statements made by or on behalf of X5 Retail Group N.V.speak only as at the date of this announcement. Save as required by anyapplicable laws or regulations, X5 Retail Group N.V. undertakes no obligationpublicly to release the results of any revisions to any forward-lookingstatements in this document that may occur due to any change in its expectationsor to reflect events or circumstances after the date of this document. Enquiries to: X5 Retail Group N.V. Gennady Frolov Head of Corporate Communications Office +7-495 950-5577 ext. 10130 Mobile +7 495 998 3335 Email gennady.frolov@x5.ru -------------------------- (1) Measured in Roubles and applicable to stores operational before 1 January 2006 This information is provided by RNS The company news service from the London Stock Exchange