Last checked at 10 Oct 2014 07:00
X5 Retail Group REPORTS Q3&9M 2014 Trading Results (1)
Amsterdam, 10 October 2014 - X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE ticker: "FIVE"), announced today the Company's preliminary consolidated net retail sales and operational results for the three (Q3) and nine (9M) months ended 30 September 2014.
Net Retail Sales(2)(3) Performance
Net Russian Rouble (RUB) retail sales by format, million (mln)
Q3 2014 | Q3 2013 | % change, y-o-y | 9M 2014 | 9M 2013 | % change, y-o-y | |
Pyaterochka | 106,498.9 | 81,708.0 | 30.3% | 309,875.5 | 250,870.2 | 23.5% |
Perekrestok | 26,610.4 | 24,614.7 | 8.1% | 83,264.6 | 79,623.5 | 4.6% |
Karusel | 16,245.4 | 14,964.1 | 8.6% | 49,727.5 | 45,944.7 | 8.2% |
Express (4) | 2,473.5 | 1,959.1 | 26.3% | 7,299.0 | 5,643.7 | 29.3% |
E5.RU | 200.3 | 287.8 | (30.4%) | 869.3 | 824.3 | 5.5% |
X5 Retail Group | 152,028.5 | 123,533.8 | 23.1% | 451,035.9 | 382,906.4 | 17.8% |
Regional contribution(5) to formats' total net RUB retail sales growth year-on-year (y-o-y), %
Q3 2014 | Total change | 9M 2014 | Total change | |||||
Central | North-West | Other | Central | North-West | Other | |||
Pyaterochka | 15.7% | 3.4% | 11.2% | 30.3% | 13.2% | 1.7% | 8.6% | 23.5% |
Perekrestok | 6.4% | 1.4% | 0.3% | 8.1% | 3.9% | 1.1% | (0.4%) | 4.6% |
Karusel | 7.7% | 0.0% | 0.9% | 8.6% | 7.4% | 0.0% | 0.8% | 8.2% |
Express | 26.3% | 0.0% | 0.0% | 26.3% | 29.3% | 0.0% | 0.0% | 29.3% |
Q3 2014 monthly net RUB retail sales by format, % change y-o-y
July 2014 | August 2014 | September 2014 | |
Pyaterochka | 30.9% | 31.0% | 29.1% |
Perekrestok | 9.6% | 9.1% | 5.5% |
Karusel | 6.5% | 12.1% | 7.0% |
Express | 28.0% | 23.3% | 27.6% |
E5.RU | (31.1%) | (32.7%) | (26.7%) |
X5 Retail Group | 23.4% | 24.0% | 21.7% |
Average Ticket and Number of Customer Visits
Q3 & 9M 2014 average ticket and customer visits by format
Q3 2014 | Q3 2013 | % change, y-o-y | 9M 2014 | 9M 2013 | % change, y-o-y | |
Average Ticket, RUB | ||||||
Pyaterochka | 289.0 | 260.5 | 11.0% | 293.9 | 268.4 | 9.5% |
Perekrestok | 411.5 | 386.0 | 6.6% | 423.8 | 404.2 | 4.9% |
Karusel | 623.1 | 587.1 | 6.1% | 621.9 | 588.5 | 5.7% |
Express | 257.6 | 243.9 | 5.6% | 263.8 | 249.3 | 5.8% |
E5.RU | 1,658.1 | 1,463.2 | 13.3% | 1,494.3 | 1,557.0 | (4.0%) |
X5 Retail Group | 324.2 | 300.6 | 7.8% | 331.9 | 310.6 | 6.9% |
# of Customers, mln. | ||||||
Pyaterochka | 421.3 | 358.1 | 17.6% | 1,204.7 | 1,067.4 | 12.9% |
Perekrestok | 73.9 | 72.9 | 1.4% | 225.1 | 225.3 | (0.1%) |
Karusel | 29.8 | 29.2 | 2.1% | 91.4 | 89.1 | 2.6% |
Express | 11.3 | 9.5 | 19.6% | 32.5 | 26.7 | 21.7% |
E5.RU | 0.1 | 0.3 | (46.5%) | 0.7 | 0.7 | 4.0% |
X5 Retail Group | 536.5 | 470.0 | 14.2% | 1,554.5 | 1,409.2 | 10.3% |
________________________
(1) Numbers in this press release are preliminary and have not been reviewed or audited by the Company's auditor.
(2) In the tables and text of this press release, immaterial deviations in calculation of % change, subtotals and totals are due to rounding.
(3) Net retail sales represent revenue from operations of X5 managed stores net of VAT. This number differs from revenue that also include proceeds from direct franchisees (royalty payments) and other revenue, which will be reported as part of Q3 and 9M 2014 financial results.
(4 )Refers to Perekrestok Express and Kopeika branded convenience stores; previously disclosed as Convenience stores.
(5) According to the economic classification of Russian regions promulgated by the Ministry of Economy. This classification differs from previously reported information regarding the regional breakdown of our store base, which was based on internal definitions of regions and which has changed in 2013 for some formats.
Q3 2014 average monthly ticket and customer visits by format, % change y-o-y
July 2014 | August 2014 | September 2014 | |
Average Ticket | |||
Pyaterochka | 11.5% | 11.9% | 9.5% |
Perekrestok | 6.2% | 7.5% | 6.1% |
Karusel | 5.5% | 8.1% | 4.7% |
Express | 7.0% | 6.9% | 2.8% |
E5.RU | 3.6% | 9.0% | 22.6% |
X5 Retail Group | 8.0% | 9.1% | 6.4% |
# of Customer Visits | |||
Pyaterochka | 17.6% | 17.2% | 18.2% |
Perekrestok | 2.6% | 2.7% | (1.3%) |
Karusel | 0.8% | 3.5% | 2.0% |
Express | 19.8% | 15.4% | 24.0% |
E5.RU | (33.6%) | (38.6%) | (59.9%) |
X5 Retail Group | 14.2% | 14.0% | 14.2% |
LFL Sales Performance
Q3 & 9M 2014 LFL(1) store performance by format, %
Q3 2014 | 9M 2014 | |||||
Sales | Traffic | Basket | Sales | Traffic | Basket | |
Pyaterochka | 17.7% | 5.3% | 11.8% | 12.3% | 1.6% | 10.5% |
Perekrestok | 4.3% | (0.1%) | 4.5% | 1.8% | (1.6%) | 3.5% |
Karusel | 4.5% | (1.5%) | 6.1% | 5.3% | (0.0%) | 5.3% |
Express | 4.6% | 0.9% | 3.6% | 3.8% | (1.2%) | 5.1% |
X5 Retail Group | 13.3% | 4.0% | 9.0% | 9.2% | 0.9% | 8.2% |
Q3 2014 monthly LFL store performance by format, %
July 2014 | August 2014 | September 2014 | |||||||
Sales | Traffic | Basket | Sales | Traffic | Basket | Sales | Traffic | Basket | |
Pyaterochka | 18.2% | 5.4% | 12.1% | 17.8% | 4.5% | 12.7% | 17.0% | 5.9% | 10.5% |
Perekrestok | 6.1% | 2.0% | 4.1% | 5.4% | (0.3%) | 5.8% | 1.4% | (2.1%) | 3.6% |
Karusel | 4.0% | (1.4%) | 5.5% | 6.8% | (1.4%) | 8.3% | 2.7% | (1.6%) | 4.4% |
Express | 5.9% | 1.0% | 4.9% | 2.9% | (2.1%) | 5.1% | 4.9% | 3.9% | 1.0% |
X5 Retail Group | 13.9% | 4.4% | 9.1% | 13.8% | 3.3% | 10.2% | 12.1% | 4.2% | 7.6% |
Expansion Dynamics
Selling space and # of stores by format
As at | As at | % change | As at | % change | |
30-Sep-14 | 31-Dec-13 | vs 31-Dec-13 | 30-Sep-13 | vs 30-Sep-13 | |
Selling Space, square meters (sq. m.) | |||||
Pyaterochka | 1,579,803 | 1,414,102 | 11.7% | 1,301,854 | 21.4% |
Perekrestok | 399,781 | 397,750 | 0.5% | 391,144 | 2.2% |
Karusel | 357,259 | 375,808 | (4.9%) | 358,542 | (0.4%) |
Express | 39,157 | 35,223 | 11.2% | 29,335 | 33.5% |
X5 Retail Group | 2,375,999 | 2,222,883 | 6.9% | 2,080,874 | 14.2% |
# of Stores | |||||
Pyaterochka | 4,342 | 3,882 | 11.8% | 3,568 | 21.7% |
Perekrestok | 389 | 390 | (0.3%) | 382 | 1.8% |
Karusel | 81 | 83 | (2.4%) | 78 | 3.8% |
Express | 193 | 189 | 2.1% | 159 | 21.4% |
X5 Retail Group | 5,005 | 4,544 | 10.1% | 4,187 | 19.5% |
________________________
(1)LFL comparisons of retail sales between two periods are comparisons of retail sales in local currency (including VAT) generated by the relevant stores. The stores that are included in LFL comparisons are those that have operated for at least 12 full months. Their sales are included in LFL calculation starting from the day of the store's opening. We include all stores that fit our LFL criteria in each reporting period.
Selling space and # of stores added by format
Net Added | Net Added | % change, | Net Added | Net Added | % change, | ||||||
Q3 2014 | Q3 2013 | y-o-y | 9M 2014 | 9M 2013 | y-o-y | ||||||
Net Selling Space, sq. m. | |||||||||||
Pyaterochka | 73,690 | 45,969 | 60.3% | 165,701 | 110,500 | 50.0% | |||||
Perekrestok | 3,388 | (839) | n/a | 2,030 | 7,685 | (73.6%) | |||||
Karusel | (109) | (12,323) | n/a | (18,549) | (9,707) | n/a | |||||
Express | 3,050 | 43 | n/a | 3,934 | 2,652 | 48.3% | |||||
X5 Retail Group | 80,019 | 32,850 | 143.6% | 153,116 | 111,130 | 37.8% | |||||
Net # of Stores | |||||||||||
Pyaterochka | 214 | 149 | 43.6% | 460 | 348 | 32.2% | |||||
Perekrestok | 2 | 4 | n/a | (1) | 12 | n/a | |||||
Karusel | 0 | (1) | n/a | (2) | - | n/a | |||||
Express | 10 | 4 | n/a | 4 | 25 | (84.0%) | |||||
X5 Retail Group | 226 | 156 | 44.9% | 461 | 385 | 19.7% | |||||
Regional contribution to formats' total net selling space growth y-o-y in Q3 2014, %
Central | North-West | Other | Total change | |
Pyaterochka | 6.1% | 1.1% | 14.1% | 21.4% |
Perekrestok | 3.3% | (0.3%) | (0.8%) | 2.2% |
Karusel | 3.8% | (3.0%) | (1.1%) | (0.4%) |
Express | 33.5% | 0.0% | 0.0% | 33.5% |
Key Drivers for Q3 and 9M 2014 Results
Net retail & LFL sales:
· Selling space expansion and increase in number of customers, primarily at Pyaterochka, and the positive performance of maturing stores from all formats added over the past two years;
· Improvement in the average ticket and LFL basket due to changes in composition and increased volume, which were also supported by rising food inflation;
· Improved promotional and marketing campaigns as well as assortment rotation at Pyaterochka, which contributed to the increase in LFL traffic and number of customer visits;
· Improvements in logistics' service levels and product availability on shelves, primarily at Pyaterochka.
Expansion:
· Primarily organic growth in Pyaterochka's Central and Other regions and the Central region for Perekrestok;
· Opening of a new Pyaterochka distribution center with approximately 34 thousand sq.m. in the southern region of Rostov-on-Don;
· In Q3 2014, X5 closed nine Pyaterochkas, four Perekrestoks and six Express stores that did not meet the respective formats' efficiency criteria.
In 9M 2014, X5 closed 25 Pyaterochkas, 10 Perekrestoks, two Karusels and 40 Express stores that did not meet the respective formats' efficiency criteria; additionally the Company disposed of 12 Perekrestok supermarkets located in the Ukraine.
· Selling space growth y-o-y as of 30 September 2014 was particularly affected by the closure of two Karusels in Chelyabinsk and St.Petersburg in Q1 2014, with respective selling space of 4.4 and 10.9 thousand sq. m. and the resizing of a Karusel, which decreased net selling space by approximately 3.2 thousand sq. m. in Q2 2014. The disposal of X5's Ukrainian subsidiary in Q1 2014 resulted in a decrease of 11.0 thousand sq. m. in Perekrestok's net selling space.
2014 Financial Calendar
Date | Event |
29 October 2014 | Q3 & 9M 2014 Financial Results |
29-30 October 2014 | X5 Capital Markets Day and Rostov Field Trip |
Note to Editors:
X5 Retail Group N.V. (LSE: FIVE, Moody's - "B2", S&P - "B+") is a leading Russian food retailer. The Company operates several retail formats: the chain of economy class stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand, Express convenience stores under various brands and the online retail channel under the E5.RU brand.
At 30 September 2014, X5 had 5,005 Company-operated stores. It has the leading market position in both Moscow and St. Petersburg and a significant presence in the European part of Russia. Its store base includes 4,342 Pyaterochka economy-class stores, 389 Perekrestok supermarkets, 81 Karusel hypermarkets and 193 Express stores. The Company operates 31 DCs and 1,528 Company-owned trucks across the Russian Federation.
For the full year 2013, revenue totaled RUB 534,560 mln, EBITDA reached RUB 38,350 mln, and net income amounted to RUB 10,984 mln. In H1 2014, revenue totaled RUB 299,746 mln, EBITDA reached RUB 21,194 mln, and net income amounted to RUR 6,449 mln.
X5's Shareholder structure is as follows: Alfa Group - 47.86%, founders of Pyaterochka - 14.43%, X5 Directors - 0.03%, treasury shares - 0.04%, free float - 37.64%.
Forward looking statements:
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. 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 because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-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 any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
Contacts: | |
Gregory Madick Executive IR Director Tel.: +7 (495) 502-9783 e-mail: Gregory.Madick@x5.ru | Andrey Napolnov, CFA Deputy IR Director Tel.: +7 (495) 662-8888, ext. 22-455 e-mail: Andrey.Napolnov@x5.ru
|