REG - X5 Retail Group N.V - Chizhik opens first stores, DC in Volgograd Region

X5 Retail NVAnnouncement

13/06/2023 10:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230613:nRSM5387Ca&default-theme=true

RNS Number : 5387C  X5 Retail Group N.V.  13 June 2023

CHIZHIK OPENS FIRST STORES AND DISTRIBUTION CENTRE IN VOLGOGRAD REGION

 

Volgograd, 13 June 2023 - X5 Group ("X5" or the "Company", LSE and MOEX
ticker: FIVE), a leading Russian food retailer, announces the opening of its
first hard discounters under the Chizhik brand in the Volgograd Region, as
well as a new distribution centre to serve Chizhik stores. On Tuesday, the
retailer opened two stores in Volgograd, on 18 Tsiolkovskogo Street and
18 Gremyachinskaya Street, and one store each in Volzhsky, on 107A Lenina
Avenue, and in Kalach-na-Donu, on 1A Chekmareva Street.

The product assortment at each store features approximately 750 SKUs,
including over 400 private label items that have already become popular with
Chizhik customers. These include Svetaevo, Verner, Shchedry God, Greenola,
Axl, Tafo, and others.

Chizhik's business model is based on offering a small but sought-after
selection of products at attractive prices. The retailer delivers low prices
for its customers thanks to business process optimisation and relentless
in-store cost cutting, while the large share of private labels in its
assortment enables Chizhik to offer only those products that meet its high
standards of quality and charge fair prices and markups. Chizhik also stands
out for its unique Nado Uspet ("Catch the Price") zone that highlights the
best deals in household, kitchen, garden goods and other products - all in
one place.

The new stores will be supplied from Chizhik's distribution centre in
Volgograd with shipments from both nationwide and local suppliers. The 8,800
square metre distribution centre has enough capacity to serve up to 150 stores
in the retail chain across the Volgograd Region and will also be used to
supply stores in the Saratov Region going forward. The logistics centre is
slated for refurbishment in 2024 to boost its capacity to serve up to 200
stores in the chain.

Chizhik has already created more than 250 jobs in the Volgograd Region and
expects to bring the total number of new jobs created for local communities to
more than 630 by the end of the year. The Volgograd Region is the 12th region
in the retail chain's footprint. Chizhik plans to open twenty more stores in
the region before the end of June, aiming to bring the total store count in
the region to up to 55 stores by the year-end.

Currently, Chizhik has more than 700 stores across 12 regions of Russia, 1 
with plans to open more than a thousand stores in 2023.

 

 

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE; Expert RA - ruAAA; ACRA - AAA(RU))
is a leading Russian food retailer. The Company operates proximity stores
under the Pyaterochka brand, Perekrestok supermarkets and Chizhik hard
discounters. X5 provides an omnichannel experience to its customers,
integrating retail stores and e-commerce through its businesses Vprok.ru,
5Post and Mnogo Lososya.

As of 31 March 2023, X5 had 21,760 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 19,549 Pyaterochka
proximity stores, 956 Perekrestok supermarkets, 591 Chizhik hard discounters
and 596 Krasny Yar and Slata stores. The Company operates 55 DCs and 4,490
Company-owned trucks across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 345
thousand people.

For the full year 2022, revenue totalled RUB 2,605,232 million (USD 38,005
million*), EBITDA pre-IFRS 16 reached RUB 186,788 million (USD 2,725
million*), and net profit pre-IFRS 16 for the period amounted to RUB 52,248
million (USD 762 million*). In Q1 2023, revenue totalled RUB 696,364 million
(USD 9,569 million**), adjusted EBITDA pre-IFRS 16 reached RUB 40,236 million
(USD 553 million**), and net profit pre-IFRS 16 amounted to RUB 12,172 million
(USD 167 million**).

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 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 Group N.V. speak
only as of the date of this announcement. Save as required by any applicable
laws or regulations, X5 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.

* FX rate: 68.5494 USD/RUB

** FX rate: 72.7738 USD/RUB

 

 For further details please contact:
 Polina Ugryumova                                                       Maria Yazeva
 Head of Corporate Finance and IR                                       Investor Relations Officer

Tel.: +7 (495) 662-88-88 ext. 13-312
Tel.: +7 (495) 662-88-88 ext. 13-147

e-mail:   (mailto:%20Polina.Ugryumova@x5.ru) Polina.Ugryumova@x5.ru
e-mail: Maria.Yazeva@x5.ru (mailto:Maria.Yazeva@x5.ru)
 (mailto:%20Polina.Ugryumova@x5.ru)

 

( )

 1  Moscow, the Voronezh, Volgograd, Sverdlovsk, Nizhny Novgorod, Samara,
Chelyabinsk, and Yaroslavl Regions, the Republic of Tatarstan, the Republic of
Bashkortostan, the Republic of Udmurtia, and the Perm Territory.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAXKDFSPDEEA