REG - X5 Retail Group N.V - X5 consolidates online businesses under X5 Digital

X5 Retail NVAnnouncement

18/07/2022 11:00

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RNS Number : 7985S  X5 Retail Group N.V.  18 July 2022

 

X5 CONSOLIDATES ONLINE BUSINESSES UNDER X5 DIGITAL

 

Moscow, 18 July 2022 – X5 Group (“X5” or the “Company”, LSE and
MOEX ticker: FIVE), a leading Russian food retailer, has spun off its online
business, completing a move announced a year ago. The new entity, X5 Digital,
will oversee the Group’s express delivery technology platform, small
dark-store infrastructure ensuring 40-minute delivery of the Pyaterochka and
Perekrestok product ranges, and large dark-store infrastructure with an
expanded assortment under the Vprok.ru brand. Larisa Romanovskaya will head
the integrated e-grocery unit.

Vladimir Salakhutdinov, Director of Strategy and Business Development at
X5 Group, commented:

“As we moved forward with the spin-off of our online business, we discussed
various scenarios for developing X5’s online businesses, both on our own and
in partnership with companies actively growing in adjacent e-commerce
segments. In particular, we considered monetisation through a partial sale and
the creation of additional shareholder value. In the end, we decided to keep
X5 Digital within the Group.

“In today’s market environment, reliance on our own infrastructure and
commercial capabilities will help to develop our online businesses with
maximum speed and flexibility. This efficient online economic model creates
new growth opportunities, while monetisation through market capitalisation, in
our opinion, has no prospects at the moment. Completing the creation of our
own delivery infrastructure and building a stable channel of remote
communication with the customer enables us to start working with external
sales channels, including connecting delivery aggregators, which we plan to do
in the near future.”

As an umbrella structure, X5 Digital will help to increase online sales by
meeting the full range of customer needs in the e-grocery segment – from
small purchases with fast delivery within city limits to bulk online
hypermarket purchases that can be delivered to any location, including
suburban areas and the countryside. Uniting these services under the control
of a dedicated unit will provide for a seamless transition between customer
needs across all X5 channels and mobile apps, as well as maximise operational
efficiency.

For X5’s online hypermarket and express delivery customers, the process for
placing and receiving orders will remain unchanged. The retail chain apps and
the Vprok.ru website will also continue to operate as usual.

In Q2 2022, the cumulative GMV of Vprok.ru Perekrestok and express delivery
services amounted to RUB 15.9 bn, up 34.1% year-on-year, including VAT,
promo codes and bonuses. In April 2022, the number of online hypermarket and
express delivery orders reached 100,000 on peak days. As of 30 June 2022,
express delivery was available from 1,718 stores (1,007 Pyaterochka stores
and 711 Perekrestok supermarkets) and 45 dark stores in 54 regions. In
Q2 2021, the average number of express delivery orders per day was
58.9 thousand, with a delivery time of ca. 60 minutes and an average ticket
of RUB 1,675 for Pyaterochka and RUB 1,888 for Perekrestok. The online
hypermarket Vprok.ru Perekrestok operates in 82 Russian regions, with
delivery service available in eight regions and self-pick-up in the remaining
74.

 

 

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE; RAEX: ruAA+) 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 Perekrestok, 5Post and Mnogo
Lososya.

As of 30 June 2022, X5 had 19,779 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 18,558 Pyaterochka
proximity stores, 986 Perekrestok supermarkets and 153 Chizhik hard
discounters. The Company operates 48 DCs and 4,347 Company-owned trucks across
the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 325
thousand people.

For the full year 2021, revenue totalled RUB 2,204,819 million (USD 29,935
million*), EBITDA pre-IFRS 16 reached RUB 161,024 million (USD 2,186
million*), and net profit pre-IFRS 16 for the period amounted to RUB 48,513
million (USD 659 million*). In Q1 2022, revenue totalled RUB 604,230 million
(USD 7,020 million**), adjusted EBITDA pre-IFRS 16 reached RUB 70,179 million
(USD 815 million**), and net profit pre-IFRS 16 amounted to RUB 2,499 million
(USD 29 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: 73.6541 USD/RUB

** FX rate: 86.0693 USD/RUB

 

 For further details please contact:
 Varvara Kiseleva                       Maria Yazeva

 Head of Corporate Finance and IR       Investor Relations Officer

 Tel.: +7 (495) 662-88-88 ext. 27-300   Tel.: +7 (495) 662-88-88 ext. 13-147

 e-mail: Varvara.Kiseleva@x5.ru         e-mail: Maria.Yazeva@x5.ru (mailto:Maria.Yazeva@x5.ru)

 

 

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