REG - X5 Retail Group N.V - X5 Group Q1 2022 Net Sales Increase 19.0%
19/04/2022 08:00
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RNS Number : 5012I X5 Retail Group N.V. 19 April 2022
X5 Group Q1 2022 net sales increase 19.0%
Amsterdam, 19 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 announces the
Company's preliminary consolidated net retail sales and operational results
for Q1 2022.(1)
Q1 2022 HIGHLIGHTS
+19.0 % y-o-y
Total net sales increased by RUB 96.4 billion
11.7% y-o-y increase in like-for-like (LFL(2)) sales
7.3% contribution to sales growth from a 7.4% increase in selling space
+358 new stores
X5 net new stores in Q1 2022
147 proximity stores and five supermarkets were refurbished in line with the
new concepts, which continue to show a positive customer response
89
Chizhik stores as of March 2022
The new hard discounter format, Chizhik, demonstrated positive results, with
sales density(3) at RUB 589 thousand per square metre, which is 117% higher
than that of the proximity format
+19.8% y-o-y
Net offline retail sales for Pyaterochka
+10.2% y-o-y
Net offline retail sales for Perekrestok
18.8 RUB BLN
Digital business net sales(4)
Express delivery services' and Vprok.ru Perekrestok's revenue rose by 101.4%
and 45.5%, respectively
+1.3 p.p. to the consolidated revenue growth rate
NET SALES PERFORMANCE
Sales of offline and digital businesses(5)
RUB MLN Q1 2022 Q1 2021 CHANGE Y-O-Y, %
OR MULTIPLE
Pyaterochka 483,435 403,488 19.8
Perekrestok 91,294 82,836 10.2
Karusel 5,430 9,744 (44.3)
Chizhik 4,099 118 35x
Offline net sales 584,258 496,186 17.7
Vprok.ru Perekrestok(6) 6,519 4,481 45.5
Express delivery 11,029 5,476 101.4
5Post (e-comm last mile) 779 431 80.6
Mnogo Lososya 480 68 7x
Digital business net sales 18,807 10,456 79.9
Total net sales 603,065 506,642 19.0
Net retail sales(7) by format
Including express delivery, but excluding Vprok.ru Perekrestok and 5Post sales
RUB MLN Q1 2022 Q1 2021 CHANGE Y-O-Y, %
OR MULTIPLE
Pyaterochka 489,193 406,710 20.3
Perekrestok 96,565 85,085 13.5
Karusel 5,430 9,749 (44.3)
Chizhik 4,099 118 35x
Mnogo Lososya 480 68 7x
Х5 Group 595,767 501,730 18.7
Q1 2022 LFL store performance by format
% change y-o-y(8)
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
Q1 2022 monthly net RUB retail sales by format
% or multiple change y-o-y
JANUARY 2022 FEBRUARY 2022 MARCH 2022
Pyaterochka 15.6 16.8 26.3
Perekrestok 7.7 6.1 16.2
Karusel (47.8) (47.2) (37.7)
Chizhik 32x 32x 38x
Offline business total 13.5 14.4 24.6
Vprok.ru Perekrestok 42.1 38.8 54.1
Express delivery 119.5 97.4 90.9
5Post (e-comm last mile) 140.5 85.6 30.4
Digital business total 91.6 76.6 73.5
Total 14.9 15.8 25.7
AVERAGE TICKET AND NUMBER OF CUSTOMER VISITS(9)
Q1 2022 average ticket and customer visits by offline format
AVERAGE TICKET, RUB Q1 2022 Q1 2021 CHANGE Y-O-Y, %
OR MULTIPLE
Pyaterochka 452.4 418.5 8.1
Perekrestok 700.5 653.5 7.2
Karusel 1,095.9 939.3 16.7
Chizhik 702.5 478.0 47.0
X5 Group 484.2 450.7 7.4
NUMBER OF CUSTOMERS, MLN
Pyaterochka 1,241.3 1,114.8 11.3
Perekrestok 157.7 148.5 6.2
Karusel 5.7 11.9 (52.2)
Chizhik 6.6 0.3 24x
X5 Group 1,411.7 1,275.5 10.7
Q1 2022 average monthly ticket and customer visits by offline format
% or multiple change y-o-y
AVERAGE TICKET, RUB JANUARY 2022 FEBRUARY 2022 MARCH 2022
Pyaterochka 6.7 6.0 11.2
Perekrestok 4.7 4.9 11.5
Karusel 12.7 15.6 21.7
Chizhik 36.9 39.7 56.9
X5 Group 5.8 5.2 10.8
NUMBER OF CUSTOMERS, MLN
Pyaterochka 8.6 10.2 14.8
Perekrestok 6.4 4.5 7.5
Karusel (53.2) (54.6) (48.7)
Chizhik 23x 23x 24x
X5 Group 8.1 9.4 14.0
EXPANSION DYNAMICS
Selling space and number of stores by format
SELLING SPACE, AS AT 31-MAR-22 AS AT 31-DEC-21 CHANGE AS AT 31-MAR-21 CHANGE Y-O-Y, %
SQUARE METRES (SQ. M)
VS 31-DEC-20, %
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(10) 8,528,416 8,409,757 1.4 7,937,892 7.4
NUMBER OF STORES
Pyaterochka 18,320 17,972 1.9 16,960 8.0
Perekrestok 983 990 (0.7) 940 4.6
Karusel 28 33 (15.2) 49 (42.9)
Chizhik 89 72 23.6 5 18x
Mnogo Lososya 53 48 10.4 24 120.8
X5 Group(10) 19,479 19,121 1.9 17,983 8.3
Selling space and number of stores added by format
SELLING SPACE, NET ADDED NET ADDED CHANGE Y-O-Y, %
SQUARE METRES (SQ. M)
Q1 2022
Q1 2021 OR MULTIPLE
Pyaterochka 134,964 115,257 17.1
Perekrestok (2,763) 5,994 n/a
Karusel (19,081) (25,985) (26.6)
Chizhik 5,034 258 20x
Mnogo Lososya 503 2,313 (78.2)
X5 Group(10) 118,659 97,836 21.3
NET NUMBER OF STORES
Pyaterochka 348 251 38.6
Perekrestok (7) 7 n/a
Karusel (5) (7) (28.6)
Chizhik 17 1 17x
Mnogo Lososya 5 24 (79.2)
X5 Group(10) 358 276 29.7
DIGITAL BUSINESSES' PERFORMANCE
Q1 2022 Q1 2021 CHANGE Y-O-Y, %
OR MULTIPLE
VPROK.RU PEREKRESTOK
GMV,(11) RUB mln 7,764 5,261 47.6
Number of orders, ths 1,643 1,170 40.4
Average ticket, RUB 4,534 4,355 4.1
EXPRESS DELIVERY
GMV,(11) RUB mln 12,961 6,479 100.1
Number of orders, ths 7,255 4,103 76.8
Average ticket, RUB 1,729 1,518 13.9
5POST
Net sales, RUB mln 779 431 80.6
Number of parcels, ths 8,379 3,980 110.6
MNOGO LOSOSYA
Net sales, RUB mln 480 68 7x
Number of orders, ths 344 50 7x
Average ticket, RUB 1,608 1,527 5.3
KEY DRIVERS FOR Q1 2022 RESULTS
External environment
• Food inflation in Q1 2022 was 13.5% year-on-year (10.8% in Q4
2021). Limited supply and strong demand for non-perishable foods led to
accelerated price growth in March on the back of a weakening rouble.
• In Q1 2022, the rouble weakened against the dollar by 14.3%
quarter-on-quarter, losing 25% of its value in March month-on-month. The
devaluation was a result of high demand for hard currency coupled with the
freezing of CBR reserves by the US and EU.
• The CBR responded to the restrictions by imposing capital controls
and raising the key rate from 9.5% to 20%.
• Real wages grew 1.9% year-on-year in January. The first two months
of the year saw a strong labour market - demand for workers continued to
exceed supply, and the unemployment rate reached an all-time low of 4.1% in
February. The subsequent deterioration in the external macro environment in
March led to a reduction in labour demand. According to the latest data from
HH.ru, the competition index (the ratio of résumés to open positions)
reached 5.0x in March vs 3.8x in February.
• Food turnover in real terms grew 3.5% year-on-year in
January-February, compared with 2.5% year-on-year in Q4 2021. Growth in
turnover was a consequence of higher incomes, in particular salaries.
Loyalty programmes
• X5 continued to develop its loyalty card programmes. In total,
X5's three retail formats had 59.5 million active(12) loyalty card users in Q1
2022, up 3.1% year-on-year. Loyalty card penetration in sales in March reached
80% at Pyaterochka, 85% at Perekrestok and 93% at Karusel.
• In March, X5 began the transition to a new software system with
processing based in Russia, with the functionality of the current system
limited as a result.
Offline business development
• Pyaterochka's offline net sales increased by 19.8% year-on-year,
with LFL sales growth at 12.6% in Q1 2022, supported by accelerated demand in
March. LFL traffic increased by 4.2% year-on-year, while the LFL basket
increased by 8.1% year-on-year in Q1 2022. The network continued to expand,
with 384 new stores and 14 dark stores in Q1 2022 (on a gross basis).
• Perekrestok's offline net sales increased by 10.2% year-on-year in
Q1 2022, with LFL sales growth at 8.0% in Q1 2022, affected by decreasing
traffic in shopping malls (approximately half of Perekrestok supermarkets are
located in shopping malls).
• In Q1 2022, Karusel's offline net sales decreased by 44.3%, driven
by downsizing as part of the format's transformation programme, with LFL sales
down by 4.4% mainly due to activities in some of the remaining Karusel stores
preparing for closure.
• Chizhik's net sales increased by 35 times year-on-year in Q1 2022.
The network accelerated its expansion in Q1 2022, opening 17 new stores during
the period and reaching 89 stores as of 31 March 2022.
Expansion and retail portfolio improvement
• 147 Pyaterochka stores were refurbished in line with the new
concept in Q1 2022, in addition to 384 gross new-concept stores opened. The
total number of stores operating under the new concept reached 5,028, or 27%
of the Pyaterochka store base, as of 31 March 2022.
• Five Perekrestok supermarkets were opened following refurbishment
in Q1 2022. As of 31 March 2022, 236 supermarkets, or 24% of the Perekrestok
store base, were operating under the new concept.
• In Q1 2022, as part of the Company's ongoing rationalisation
programme, X5 closed 50 proximity stores, 16 supermarkets and five
hypermarkets.
• In March, the expansion and refurbishment programmes were paused
in order to review the amount of capital investments planned for 2022.
Development of digital businesses
• In Q1 2022, X5 digital services had a total of 19.0 million MAUs,
an increase of 42% year-on-year.
• The external environment in the e-grocery segment continued to be
very competitive, with many technology players promoting their services with
significant marketing budgets.
• The combined GMV of Vprok.ru Perekrestok and express delivery
services in Q1 2022 reached RUB 20.7 billion, up 77% year-on-year, including
VAT and gross of promo codes and bonuses. Expansion of express delivery
services contributed 72% of this growth, with 28% coming from the online
hypermarket Vprok.ru Perekrestok.
• Total digital business revenue (including Vprok.ru Perekrestok,
express delivery, 5Post and Mnogo Lososya) grew 79.9% year-on-year in Q1 2022
and contributed 1.3 p.p. to the consolidated quarterly revenue growth rate of
19.0%. Vprok.ru Perekrestok and express delivery successfully fulfilled more
than 117 thousand orders on peak days in March.
• Digital business net sales as a share of X5's consolidated net
sales saw the fastest growth in Moscow and the Moscow region, where the share
of digital sales for Q1 2022 reached 5.9%, compared with an average 3.1%
contribution to the total sales for X5 Group.
• X5 continues the rapid expansion of express delivery services from
Pyaterochka proximity stores and Perekrestok supermarkets. In Q1 2022, total
revenue of express delivery services doubled year-on-year. As of 31 March
2021, express delivery service was available from 1,722 stores (949
Pyaterochka stores, 728 Perekrestok supermarkets and 45 dark stores) in 52
regions, compared with 1,296 stores and 24 regions a year earlier. In Q1 2022,
the number of orders for express delivery was 80.6 thousand per day (including
Okolo), with a delivery time of c. 60 minutes and an average ticket of RUB
1,642 at Pyaterochka and RUB 1,850 at Perekrestok, up 15% and 10%
year-on-year, respectively. The daily number of fulfilled orders during Q1
2022 peaked in March at 97 thousand on the busiest days.
• In Q1 2022, Vprok.ru Perekrestok's revenue increased by 45.5%
year-on-year. The total number of Vprok.ru Perekrestok orders increased by 40%
year-on-year and reached 1.6 million in Q1 2022. The average number of daily
orders in Q1 2022 reached 18.3 thousand. The average Vprok.ru Perekrestok
basket in Q1 2022 increased by 4.1% year-on-year, reflecting further expansion
in the assortment to 78 thousand SKUs.
• In Q1 2022, 5Post's e-commerce delivery service revenue increased
by 80.6% year-on-year. Orders fulfilled by 5Post reached 8.4 million in Q1
2022, with over 23 thousand pickup points in operation, including over 5
thousand multi-parcel lockers. Parcel lockers and pickup points in stores
generate additional LFL traffic of up to 2%-3%.
• The Mnogo Lososya ready-to-eat digital service, which became part
of X5 Group in late March 2021, continued expanding. As of the end of March,
it was operating 53 dark kitchens (including three franchisees), compared with
50 dark kitchens at the end of December 2021. In Q1 2022, Mnogo Lososya's net
sales reached RUB 480 million with an average ticket of RUB 1,608.
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*).
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
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)
Notes
1. Numbers in this press release are preliminary and have not been
reviewed or audited by the Company's auditor.
2. 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 LFL
calculations starting from the day of the store's opening. We include all
stores that fit our LFL criteria in each reporting period.
3. Calculated as net retail sales over the last 12 months divided by the
average selling space at the end of each quarter starting at the beginning of
the period.
4. Vprok.ru Perekrestok, express delivery, 5Post and Mnogo Lososya.
5. In the tables and text of this press release, immaterial deviations
in the calculation of % change, subtotals and totals are due to rounding.
6. Excluding other revenue (marketing).
7. Net retail sales represent revenue from operations of X5-managed
stores net of VAT. This number differs from revenue, which also includes
proceeds from direct franchisees (royalty payments) and other revenue, which
will be reported as part of X5's Q1 2022 financial results.
8. Excluding Vprok.ru Perekrestok.
9. Excluding Vprok.ru Perekrestok.
10. Including Vprok.ru Perekrestok dark stores.
11. GMV is the value of delivered orders at their final prices (incl. VAT),
gross of promo codes and bonuses applied.
12. Customers who made at least one purchase during the last quarter.
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