REG - X5 Retail Group N.V - Chizhik opens its first stores in Mordovia

X5 Retail NVAnnouncement

21/12/2023 08:00

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RNS Number : 5105X  X5 Retail Group N.V.  21 December 2023

CHIZHIK OPENS ITS FIRST STORES IN MORDOVIA

Saransk, 21 December 2023 - X5 Group ("X5" or the "Company", LSE and MOEX
ticker: FIVE), a leading Russian food retailer, announces the opening of its
Chizhik hard discounter stores in the Republic of Mordovia. On Thursday, the
chain launched its first two stores 1  (#_ftn1) in Saransk, with up to ten
Chizhik stores expected to operate in the city in 2024.

 

Chizhik stores offer a small but sought-after selection of value-for-money
products. The assortment features approximately 750 SKUs, including over 400
private label items that are unique to the chain.

 

A carefully selected product mix and continuous product quality assurance are
among the key factors that set Chizhik apart. Only those products that have
been top-rated by tasters hit the shelves. All suppliers are audited, with
Chizhik verifying product formulation and label claims as well as compliance
with Russian state standards and other requirements. Chizhik's products are
thoroughly tested by independent accredited laboratories. The chain also acts
quickly on any customer feedback flagging potential quality issues, with
ad-hoc supplier audits performed when non-conforming products are identified.
In addition, Chizhik uses customer feedback to refine product formulations and
ingredients or improve packaging, and offers customers a full refund with no
receipt required if they are unhappy with the taste or quality of any product
purchased at the chain.

Most SKUs offered by Chizhik are exclusive products that can rival major
brands in terms of taste and quality while being more affordable. Chizhik also
stands out for its unique Nado Uspet ("Catch the Price") zone that highlights
the best deals in household, kitchen, garden goods, children's goods, and
other categories - all in one place. This highly popular selection is rotated
every week.

 

 

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 September 2023, X5 had 23,466 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, as well as a growing presence in the
Russian Far East. Its store base includes 20,761 Pyaterochka proximity stores,
955 Perekrestok supermarkets, 1,071 Chizhik hard discounters and 601 Krasny
Yar and Slata stores. The Company operates 61 DCs and 4,745 Company-owned
trucks across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 364
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 9M 2023, revenue totalled RUB 2,264,643 million
(USD 27,386 million**), adjusted EBITDA pre-IFRS 16 reached RUB 163,212
million (USD 1,974 million**), and net profit pre-IFRS 16 amounted to RUB
71,250 million (USD 862 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: 82.6934 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) The two stores are located in the city of Saransk, at the
addresses 200 70 Let Oktyabrya Avenue and 3/3 Rossiyskoy Armii Avenue.

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