REG - X5 Retail Group N.V - X5 Group Announces Q1 2022 Financial Results
27/04/2022 08:00
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RNS Number : 4221J X5 Retail Group N.V. 27 April 2022
X5 announces Q1 2022 financial results
Amsterdam, 27 April 2022 - X5 Retail Group N.V. ("X5" or the "Company", LSE
and MOEX ticker: FIVE), a leading Russian food retailer that operates the
Pyaterochka, Perekrestok and Chizhik retail chains, today released its
unaudited condensed consolidated interim financial information for the three
months ended 31 March 2022 ("Q1"), in accordance with International Financial
Reporting Standards as adopted by the European Union.
Profit and loss statement highlights(1)
IFRS 16 Pre-IFRS 16(2)
RUB mln Q1 2022 Q1 2021 change y-o-y, % Q1 2022 Q1 2021 change y-o-y, %
or multiple or multiple
Revenue 604,230 507,191 19.1 604,230 507,191 19.1
incl. net retail sales(3) 601,776 505,783 19.0 601,776 505,783 19.0
Pyaterochka (incl. express delivery) 489,193 406,710 20.3 489,193 406,710 20.3
Perekrestok (incl. Vprok.ru Perekrestok and express delivery) 102,574 89,137 15.1 102,574 89,137 15.1
Karusel 5,430 9,749 (44.3) 5,430 9,749 (44.3)
Chizhik 4,099 118 35x 4,099 118 35x
Mnogo Lososya 480 68 7x 480 68 7x
Gross profit 150,430 129,541 16.1 148,472 127,625 16.3
Gross profit margin, % 24.9 25.5 (64) b.p. 24.6 25.2 (59) b.p.
Adj. EBITDA(4) 70,179 61,656 13.8 42,532 35,475 19.9
Adj. EBITDA margin, % 11.6 12.2 (54) b.p. 7.0 7.0 4 b.p.
EBITDA 69,556 61,227 13.6 41,909 35,046 19.6
EBITDA margin, % 11.5 12.1 (56) b.p. 6.9 6.9 3 b.p.
Operating profit 26,190 24,500 6.9 17,106 16,868 1.4
Operating profit margin, % 4.3 4.8 (50) b.p. 2.8 3.3 (49) b.p.
Net profit 2,499 7,638 (67.3) 5,022 9,163 (45.2)
Net profit margin, % 0.4 1.5 (109) b.p. 0.8 1.8 (98) b.p.
Revenue
Revenue growth reached 19.1% year-on-year in Q1 2022, driven by positive LFL
sales, selling space expansion and 79.9% revenue growth in X5's digital
businesses. The latter reflected higher demand from customers for online
services, an incremental increase in the number of new online customers and
expansion of express delivery operations to new geographies.
Selling space by format, square metres (sqm)
AS AT 31-MAR-22 AS AT 31-DEC-21 CHANGE AS AT 31-MAR-21 CHANGE Y-O-Y, %
VS 31-DEC-21, %
OR MULTIPLE
Pyaterochka 7,183,452 7,048,488 1.9 6,656,879 7.9
Perekrestok 1,096,143 1,098,905 (0.3) 1,019,854 7.5
Karusel 108,982 128,063 (14.9) 196,134 (44.4)
Chizhik 25,361 20,327 24.8 1,238 20x
Mnogo Lososya 5,495 4,992 10.1 2,313 137.6
X5 Group(5) 8,528,416 8,409,757 1.4 7,937,892 7.4
Q1 2022 LFL(6) store performance by format, % change y-o-y
In Q1 2022, LFL sales performance accelerated year-on-year to 11.7%, supported
by solid LFL results at Pyaterochka and Perekrestok at 12.6% and 8.0%,
respectively.
The LFL basket was the main driver of LFL sales in Q1 2022, with LFL traffic
in positive territory at 3.7% year-on-year.
SALES TRAFFIC BASKET
Pyaterochka 12.6 4.2 8.1
Perekrestok 8.0 0.4 7.5
Karusel (4.4) (13.7) 10.7
X5 Group 11.7 3.7 7.8
For more details on net retail sales performance, please refer to X5's Q1 2022
Trading Update
(https://www.x5.ru/en/PublishingImages/Pages/Media/News/Q1_2022_Trading_Update_ENG.pdf)
.
(https://www.x5.ru/ru/PublishingImages/Pages/Media/News/Trading_Update_Q3%202021__RUS.pdf)
Selling, general and administrative (SG&A) expenses (excl. D&A&I
and the impact of the Karusel transformation)
IFRS 16 Pre-IFRS 16
RUB mln Q1 2022 Q1 2021 change, Q1 2022 Q1 2021 change,
y-o-y, % y-o-y, %
Staff costs (50,078) (43,484) 15.2 (50,078) (43,484) 15.2
% of revenue 8.3 8.6 (29) b.p. 8.3 8.6 (29) b.p.
incl. LTI and share-based payments (376) (422) (10.9) (376) (422) (10.9)
staff costs excl. LTI and share- 8.2 8.5 (26) b.p. 8.2 8.5 (26) b.p.
based payments as % of revenue
Lease expenses (3,929) (2,902) 35.4 (28,168) (25,288) 11.4
% of revenue 0.7 0.6 8 b.p. 4.7 5.0 (32) b.p.
Utilities (13,867) (11,947) 16.1 (13,867) (11,947) 16.1
% of revenue 2.3 2.4 (6) b.p. 2.3 2.4 (6) b.p.
Other store costs (5,620) (5,170) 8.7 (5,839) (5,385) 8.4
% of revenue 0.9 1.0 (9) b.p. 1.0 1.1 (10) b.p.
Third-party services (4,514) (4,252) 6.2 (4,419) (4,222) 4.7
% of revenue 0.7 0.8 (9) b.p. 0.7 0.8 (10) b.p.
Other expenses (8,427) (6,348) 32.8 (9,564) (7,245) 32.0
% of revenue 1.4 1.3 14 b.p. 1.6 1.4 15 b.p.
SG&A (excl. D&A&I and the impact of the Karusel transformation) (86,435) (74,103) 16.6 (111,935) (97,571) 14.7
% of revenue 14.3 14.6 (31) b.p. 18.5 19.2 (71) b.p.
SG&A (excl. D&A&I, LTI, share-based payments and the impact of the (86,059) (73,681) 16.8 (111,559) (97,149) 14.8
Karusel transformation)
% of revenue 14.2 14.5 (28) b.p. 18.5 19.2 (69) b.p.
In Q1 2022, SG&A expenses excluding D&A&I, LTI, share-based
payments and the impact of the Karusel transformation under IFRS 16 as a
percentage of revenue decreased by 28 b.p. to 14.2% (decreased by 69 b.p. to
18.5% pre-IFRS 16), driven by lower staff costs, lease expenses (for pre-IFRS
16), other store costs, third-party services and utilities costs.
As a percentage of revenue, the Company's income from leases, subleases and
other operations(7) under IFRS 16 totalled 1.0%, a decrease of 13 b.p.
year-on-year in Q1 2022 (a decrease of 1 b.p. to 1.0% pre-IFRS 16), due to
decrease in gain on derecognition of right-of-use assets and lease
liabilities.
EBITDA and EBITDA margin
IFRS 16 Pre-IFRS 16
RUB mln Q1 2022 Q1 2021 change y-o-y, % Q1 2022 Q1 2021 change y-o-y, %
or multiple or multiple
Gross profit 150,430 129,541 16.1 148,472 127,625 16.3
Gross profit margin, % 24.9 25.5 (64) b.p. 24.6 25.2 (59) b.p.
SG&A (excl. D&A&I, LTI, share-based payments and the effect of the (86,059) (73,681) 16.8 (111,559) (97,149) 14.8
Karusel transformation)
% of revenue 14.2 14.5 (28) b.p. 18.5 19.2 (69) b.p.
Net impairment losses on financial assets (435) (121) 259.5 (435) (121) 259.5
% of revenue 0.07 0.02 5 b.p. 0.07 0.02 5 b.p.
Lease/sublease and other income (excl. the effect of the Karusel 6,243 5,917 5.5 6,054 5,120 18.2
transformation)
% of revenue 1.0 1.2 (13) b.p. 1.0 1.0 (1) b.p.
Adj. EBITDA 70,179 61,656 13.8 42,532 35,475 19.9
Adj. EBITDA margin, % 11.6 12.2 (54) b.p. 7.0 7.0 4 b.p.
LTI, share-based payments and other one-off remuneration payment expenses and (376) (422) (10.9) (376) (422) (10.9)
SSC
% of revenue (0.1) (0.1) 2 b.p. (0.1) (0.1) 2 b.p.
Effect of the Karusel transformation (247) (7) 35x (247) (7) 35x
% of revenue (0.0) (0.0) (4) b.p. (0.0) (0.0) (4) b.p.
EBITDA 69,556 61,227 13.6 41,909 35,046 19.6
EBITDA margin, % 11.5 12.1 (56) b.p. 6.9 6.9 3 b.p.
D&A&I
Depreciation, amortisation and impairment costs under IFRS 16 decreased as a
percentage of revenue by 6 b.p. year-on-year to 7.2% (up 52 b.p. year-on-year
to 4.1% pre-IFRS 16) in Q1 2022, totalling RUB 43,366 million (RUB 24,803
million pre-IFRS 16). This was mainly driven by the impairment of non-current
assets, offset by decreased depreciation of right-of-use assets under IFRS 16.
The latter corresponds to the increase in interest expense on lease
liabilities related to higher discount rates.
Non-operating gains and losses
IFRS 16 Pre-IFRS 16
RUB mln Q1 2022 Q1 2021 change y-o-y, % Q1 2022 Q1 2021 change y-o-y, %
or multiple or multiple
Operating profit 26,190 24,500 6.9 17,106 16,868 1.4
Net finance costs (17,066) (13,365) 27.7 (5,810) (3,845) 51.1
Net FX result (3,294) (120) 27x (2,307) (101) 23x
Profit before tax 5,830 11,015 (47.1) 8,989 12,922 (30.4)
Income tax expense (3,331) (3,377) (1.4) (3,967) (3,759) 5.5
Net profit 2,499 7,638 (67.3) 5,022 9,163 (45.2)
Net profit margin, % 0.4 1.5 (109) b.p. 0.8 1.8 (98) b.p.
Consolidated cash flow statement highlights
IFRS 16 Pre-IFRS 16
RUB mln Q1 2022 Q1 2021 change y-o-y, % Q1 2022 Q1 2021 change y-o-y, %
or multiple or multiple
Net cash from operating activities before changes in working capital 70,757 60,407 17.1 43,306 35,023 23.7
Change in working capital (24,192) (4,915) 5x (23,894) (5,035) 5x
Net interest and income tax paid (20,409) (15,072) 35.4 (9,178) (5,575) 64.6
Net cash flows generated from operating activities 26,156 40,420 (35.3) 10,234 24,413 (58.1)
Net cash used in investing activities (21,967) (18,704) 17.4 (22,124) (18,704) 18.3
Net cash generated from/(used in) financing activities 22,966 (29,511) n/m 39,045 (13,504) n/m
Effect of exchange rate changes on cash and cash equivalents (5) - n/m (5) - n/m
Net increase/(decrease) in cash and cash equivalents 27,150 (7,795) n/m 27,150 (7,795) n/m
In Q1 2022, the Company's net cash from operating activities before changes in
working capital under IFRS 16 increased from a year ago by RUB 10,350 million
to RUB 70,757 million (increased by RUB 8,283 million and totalled 43,306
million under pre-IFRS 16), reflecting business growth.
In Q1 2022, net cash flow from operating activities under IFRS 16 totalled RUB
26,156 million, down from RUB 40,420 million (RUB 10,234 million, down from
RUB 24,413 million under pre-IFRS 16) in Q1 2021.
Net cash used in investing activities, which generally consists of payments
for property, plant and equipment, under IFRS 16 increased by 17.4%
year-on-year to RUB 21,967 million in Q1 2022, compared with RUB 18,704
million in Q1 2021 (by 18.3% year-on-year to RUB 22,124 million, compared with
RUB 18,704 million in Q1 2021 under pre-IFRS 16).
Net cash generated from financing activities under IFRS 16 was RUB 22,966
million (RUB 39,045 million under pre-IFRS 16) in Q1 2022, compared with net
cash used in financing activities of RUB 29,511 million (RUB 13,504 million
under pre-IFRS 16) in Q1 2021.
Liquidity update
RUB mln 31-Mar-22 % of total 31-Dec-21 % of total 31-Mar-21 % of total
Total debt 333,408 294,338 248,009
Short-term debt 115,489 34.6 87,767 29.8 78,081 31.5
Long-term debt 217,919 65.4 206,571 70.2 169,928 68.5
Net debt (pre-IFRS 16) 280,196 268,276 235,796
Adjusted net debt (pre-IFRS 16)(8) 229,063 218,184 235,796
Net debt/EBITDA (pre-IFRS 16) 1.67x 1.67x 1.60x
Adjusted net debt/EBITDA (pre-IFRS 16) (8) 1.36x 1.35x 1.60x
Lease liabilities (IFRS 16) 570,090 577,363 555,815
Net debt/EBITDA (IFRS 16) 3.08x 3.16x 3.18x
Adjusted net debt/EBITDA (IFRS 16)(8) 2.89x 2.97x 3.18x
The Company's net debt/EBITDA ratio under IFRS 16 was 3.08x (1.67x pre-IFRS
16) as of 31 March 2022.
The Company's debt pre-IFRS 16 is 100% denominated in Russian roubles.
As of 31 March 2022, the Company had access to RUB 435,060 million in
available credit limits with major Russian and international banks.
1. Please note that, in this and other tables and in the text of this
press release, immaterial deviations in the calculation of % changes,
subtotals and totals are due to rounding.
2. The pre-IFRS 16 financial measures are calculated by adjusting the
applicable IFRS measures to include fixed lease expenses and fixed non-lease
components of lease contracts and to exclude any gain on derecognition of
right-of-use assets and lease liabilities, depreciation of right-of-use assets
and interest on lease liabilities and gain/loss from sale of assets under sale
and leaseback operations for the proportion of the rights retained recognised
under IFRS 16.
3. Net retail sales represent revenue from the operations of X5-managed
stores net of VAT. This number differs from revenue, which includes proceeds
from wholesale operations, direct franchisees (royalty payments) and other
revenue.
4. Adjusted EBITDA is EBITDA before costs related to the LTI programme,
share-based payments, other one-off remuneration payment expenses and the
impact of the Karusel transformation.
5. Including Vprok.ru Perekrestok dark stores.
6. 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 the LFL
calculation starting from the day of the store's opening. We include all
stores that fit our LFL criteria in each reporting period.
7. Mainly consists of lease/sublease income, income from the sale of
recyclable materials and other one-off gains.
8. Adjusted short-term financial investments.
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 31 March 2022, X5 had 19,479 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
18,320 Pyaterochka proximity stores, 983 Perekrestok supermarkets, 89 Chizhik
hard discounters and 28 Karusel hypermarkets. The Company operates 47 DCs and
4,574 Company-owned trucks across the Russian Federation.
X5 is one of the largest employers in Russia. The Company employs over 328
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:
Maria Yazeva
Investor Relations Officer
Tel.: +7 (495) 662-88-88 ext. 13-147
e-mail: Maria.Yazeva@x5.ru (mailto:Maria.Yazeva@x5.ru)
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