REG - X5 Retail Group N.V - Chizhik opens first stores in Rostov and Krasnodar

X5 Retail NVAnnouncement

15/08/2023 10:00

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RNS Number : 3754J  X5 Retail Group N.V.  15 August 2023

CHIZHIK OPENS FIRST STORES IN ROSTOV REGION AND KRASNODAR TERRITORY

 

Moscow, 15 August 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 Rostov Region and Krasnodar
Territory, as well as the opening of a new distribution centre in Krasnodar to
serve its Chizhik stores. On Tuesday, the retailer opened two stores in
Bataisk and one store apiece in Rostov-on-Don, Krasnodar, Novokubansk, the
settlement of Yablonovsky, and the Cossack village of Novotitarovskaya. 1 
(#_ftn1)

 

The new stores will be supplied from Chizhik's distribution centre in
Krasnodar with shipments from both nationwide and local suppliers. The 14,845
square metre distribution centre has capacity to handle shipments from over
200 suppliers and serve up to 250 stores in the retail chain across the
Krasnodar and Stavropol Territories, as well as in the Rostov Region.

Chizhik plans to open 22 more stores in the Rostov Region and 30 stores in the
Krasnodar Territory before the end of August, aiming to bring the total store
count in the regions to 49 and 65 stores by year-end, respectively. In 2023,
the retailer expects to create over 1,200 new jobs for local communities in
these two regions.

Chizhik's business model is based on offering a small but sought-after
selection of products. 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. The product assortment at each store features
approximately 700 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 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.

 

 

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 30 June 2023, X5 had 22,682 Company-operated stores. It has the leading
market position in both Moscow and St Petersburg, as well as a significant
presence in the European part of Russia and a growing presence in the Russian
Far East. Its store base includes 20,248 Pyaterochka proximity stores, 956
Perekrestok supermarkets, 809 Chizhik hard discounters and 596 Krasny Yar and
Slata stores. The Company operates 59 DCs and 4,604 Company-owned trucks
across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 358
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 H1 2023, revenue totalled RUB 1,468,407 million
(USD 19,095 million**), adjusted EBITDA pre-IFRS 16 reached RUB 100,748
million (USD 1,310 million**), and net profit pre-IFRS 16 amounted to RUB
41,661 million (USD 542 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: 76.8996 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: Polina.Ugryumova@x5.ru (mailto:Polina.Ugryumova@x5.ru)
e-mail: Maria.Yazeva@x5.ru (mailto:Maria.Yazeva@x5.ru)

 1  (#_ftnref1) Rostov-on-Don - 12B Korolyova Avenue; Bataisk - 74A
Ogorodnaya Street, 97 Maksima Gorkogo Street; Krasnodar - 127 Budyonnogo
Street; Yablonovsky - 47/1 Kosmicheskaya Street; Novokubansk - 163
Pervomayskaya; Novotitarovskaya - 192 Lenina Street.

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