X5 Retail Regulatory News (FIVE)

18 Jan 2007 07:02

X5 Retail Group N.V.18 January 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN 18 January 2007 X5 RETAIL GROUP N.V. Q4 2006 AND FY 2006 TRADING UPDATE Q4 2006 LIKE-FOR-LIKE SALES UP +13% FOR THE GROUP VS. Q4 2005 126,025 SQ.M. OF NET SELLING SPACE ADDED DURING 2006 X5 Retail Group N.V. (LSE ticker: "FIVE") provided today a trading updateincluding store opening data and Like-for-Like ("LFL") sales trends for thePyaterochka and Perekrestok chains for Q4 and FY 2006. Expansion X5 Retail Group N.V. has successfully completed its 2006 store opening programgaining additional net selling space of approximately 59,000 square metres in Q42006. Over the FY 2006, X5 Retail Group N.V. gained additional net sellingspace of approximately 126,000 square metres (of which approximately 68,000square metres for Perekriostok chain, and approximately 58,000 square metres forPyaterochka chain), thus outstripping its FY2006 store opening target to addapproximately 120,000 square metres. As of 31 December 2006, X5 Retail GroupN.V. operated approximately 466,000 square metres of net selling space. In terms of numbers of stores, the Group opened 33 new "Pyaterochka"soft-discount stores and 27 new "Perekrestok" supermarkets during Q4 2006. As of31 December 2006, X5 Retail Group N.V. operated 451 company-managed Pyaterochkasoft-discount stores and 168 Perekrestok stores, including 12 hypermarkets. Moscow In Moscow, Pyaterochka chain gained additional net selling space ofapproximately 13,000 square metres during Q4 2006, implying a total ofapproximately 35,000 square metres gained in 2006. As of 31 December 2006,Pyaterochka chain operated a total of approximately 135,000 square metres of netselling space in the Moscow area. Perekrestok chain gained additional netselling space of approximately 20,000 square metres during Q4 2006, implying atotal of approximately 30,000 square metres gained in 2006. As of 31 December2006, Perekrestok chain operated a total of approximately 111,000 square metresof net selling space in the Moscow area. In terms of numbers of stores, as of 31 December 2006, the Group operated in theMoscow area 222 Pyaterochka soft discount stores and 100 Perekrestok storesincluding 3 hypermarkets. St. Petersburg In St. Petersburg, Pyaterochka chain gained additional net selling space ofapproximately 2,000 square metres during Q4 2006, implying a total ofapproximately 19,000 square metres gained in 2006. As of 31 December 2006,Pyaterochka chain operated a total of approximately 114,000 square metres of netselling space in the St. Petersburg area. Perekrestok chain gained additionalnet selling space of approximately 2,000 square metres during Q4 2006, implyinga total of approximately 10,000 square metres gained in 2006. As of 31 December2006, Perekrestok chain operated a total of approximately 20,000 square metresof net selling space in the St. Petersburg area. In terms of numbers of stores, as of 31 December 2006, the Group operated in theSt. Petersburg area 204 soft discount Pyaterochka stores and 17 Perekrestokstores. Russian Regions, Ukraine and Kazakhstan In the regions outside of Moscow and St. Petersburg, Perekrestok chain gainedadditional net selling space of approximately 20,000 square metres during Q42006, implying a total of approximately 29,000 square metres gained in 2006. Asof 31 December 2006, Perekrestok chain operated a total of approximately 78,000square metres of net selling space in the regions. In Yekaterinburg, Pyaterochka chain gained additional net selling space ofapproximately 2,000 square metres during Q4 2006, implying a total ofapproximately 4,000 square metres gained in 2006. As of 31 December 2006,Pyaterochka chain operated a total of approximately 9,000 square metres of netselling space in Yekaterinburg. In terms of numbers of stores, as of 31 December 2006, in the regions outside ofMoscow and St. Petersburg the Group operated 25 Pyaterochka stores and 51Perekrestok stores, including 9 hypermarkets. Pyaterochka's franchisees also continued to expand rapidly, opening 66 newstores operating under the Pyaterochka brand during Q4 2006. As of 31 December2006, Pyaterochka's franchisees operated 605 stores across Russia, in Ukraineand Kazakhstan. Perekrestok had 10 stores operated by franchisees in the Moscowarea. Store Operations Over the year of 2006, X5 Retail Group N.V. not only outstripped its storeopening target but also experienced strong Like-for-Like sales(1) trends acrossboth chains, demonstrating the strongest performance in Q4 2006 (+13%). In Q4the Group maintained the positive Like-for-Like sales trends of the previousquarters in Moscow, and showed continued improvement of PayterochkaLike-for-Like sales performance in St. Petersburg. Group During Q4 2006, Group LFL sales performance (including both chains) reached+13%, composed of traffic of +8% and basket growth of +5%. For FY 2006, thegroup experienced LFL sales of +11%, composed of traffic of +3% and basketgrowth of +8%. The Pyaterochka chain experienced overall LFL sales performance of +11% duringQ4 2006 (traffic +3%, basket growth of 8%), and 9% for FY 2006 (traffic 0%,basket growth of +9%). The Perekrestok chain experienced overall LFL sales performance of +15% duringQ4 2006 (traffic +13%, basket growth of +2%), and +14% for FY 2006 (traffic +8%,basket growth of 6%). Moscow LFL sales at Moscow area Pyaterochka stores reached +14% during Q4 2006,composed of traffic of +7% and an increase in the average basket of +7%. OverFY 2006, the Pyaterochka stores in Moscow experienced LFL sales performance of+13%, composed of traffic of +3% and basket growth of +10%. LFL sales at Moscow area Perekrestok stores reached +18% during Q4 2006, on thebasis of traffic of +15% and basket growth of +3%. During FY 2006, thePerekrestok stores in Moscow experienced LFL sales performance of +16%, composedof traffic of +10% and basket growth of +6%. St. Petersburg LFL sales at St. Petersburg area Pyaterochka stores reached +7% during Q4 2006,composed of traffic of -1% and basket growth of +8%. During FY 2006, thePyaterochka stores in St. Petersburg experienced LFL sales performance of +3%,composed of traffic of -4% and basket growth of +7%. LFL sales at St. Petersburg area Perekrestok stores reached 10% during Q4 2006,on the basis of traffic of +14% and basket of -4%. During FY 2006, thePerekrestok stores in St. Petersburg experienced LFL sales performance of +8%,composed of traffic of +10% and basket of -2%. Regions LFL sales at Perekrestok stores in the regions outside of Moscow and St.Petersburg reached +7% during Q4 2006, composed of traffic of +5% and basketgrowth of +2%. For FY 2006 these stores experienced LFL sales of + 11%, basedon traffic of +5% and basket growth of +6%. - End - Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of31 December 2006, the Group had 451 company-managed "Pyaterochka" soft discountstores located in the Moscow (222), St. Petersburg (204) and Yekaterinburg (25)areas, and 168 company-managed "Perekrestok" supermarkets across Central Russiaand Ukraine, including 100 stores in Moscow. As of 31 December 2006, franchisees operated 605 Pyaterochka branded storesacross Russia, in Ukraine and Kazakhstan. Perekrestok had 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. 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 +7 495 984 6956 ext.2093 Mobile +7 495 998 3335 Email gennady.frolov@x5.ru http://www.x5.ru -------------------------- (1) Measured in Roubles and applicable for stores operational on or before 1January 2005 This information is provided by RNS The company news service from the London Stock Exchange