REG - X5 Retail Group N.V - X5 Group Q1 2024 net sales increase 26.9%
16/04/2024 08:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240416:nRSP6806Ka&default-theme=true
RNS Number : 6806K X5 Retail Group N.V. 16 April 2024
X5 Group Q1 2024 net sales increase 26.9%
Digital business net sales up 81.7%
Amsterdam, 16 April 2024 - 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 its
preliminary consolidated net retail sales and operational results for Q1
2024(1).
Q1 2024 (PRELIMINARY) HIGHLIGHTS
+26.9% y-o-y
Total net sales growth was driven by a 14.8% y-o-y increase in like-for-like
(LFL(2)) sales and selling space expansion
+412 new stores
X5 net new stores in Q1 2024
Including 285 proximity stores, 6 supermarkets, 116 hard discounters, 3 dark
kitchens, and 2 discounters of the Krasny Yar and Slata chains
143.5% y-o-y
Chizhik net sales totalled RUB 45.6 billion in Q1 2024
Chizhik opened 116 stores in Q1 2024
+25.1% y-o-y
Net retail sales for Pyaterochka(3) totalled RUB 686.5 billion
+18.9% y-o-y
Net retail sales for Perekrestok totalled RUB 120.6 billion
+81.7% y-o-y
Digital business net sales(4) totalled RUB 46.5 billion
5.3% of total net sales
+2.1 p.p. of the consolidated revenue growth rate
NET SALES PERFORMANCE
Sales of offline and digital businesses(5)
RUB MLN Q1 2024 Q1 2023 CHANGE Y-O-Y, %
Pyaterochka 660,943 537,943 22.9
Perekrestok 107,705 93,744 14.9
Chizhik 45,392 18,740 142.2
Offline net sales(6) 835,699 669,761 24.8
Digital businesses' net sales 46,525 25,606 81.7
Total net sales 882,224 695,367 26.9
Net retail sales(7) by format
Including express delivery; excluding Vprok.ru and 5Post sales
RUB MLN Q1 2024 Q1 2023 CHANGE Y-O-Y, %
Pyaterochka 686,513 548,912 25.1
Perekrestok 120,638 101,442 18.9
Chizhik 45,640 18,744 143.5
Net retail sales(8) 875,536 689,179 27.0
Q1 2024 LFL store performance by format
% change y-o-y
SALES TRAFFIC BASKET
Pyaterochka 14.6 3.0 11.2
Perekrestok 16.8 3.4 13.0
X5 Group(9) 14.8 2.9 11.6
Q1 2024 monthly net retail sales by format
% change y-o-y
JANUARY 2024 FEBRUARY 2024 MARCH 2024
Pyaterochka 19.7 25.5 23.3
Perekrestok 13.2 16.7 14.7
Chizhik 149.6 142.7 136.5
Offline business total 21.5 27.4 25.4
Digital business total 76.4 84.8 83.6
Total 23.5 29.6 27.5
AVERAGE TICKET AND NUMBER OF CUSTOMER VISITS
Q1 2024 average ticket and customer visits by offline format
AVERAGE TICKET, RUB Q1 2024 Q1 2023 CHANGE Y-O-Y, %
Pyaterochka 517.6 465.4 11.2
Perekrestok 815.1 722.2 12.9
Chizhik 615.9 586.0 5.1
X5 Group(10) 549.9 494.3 11.3
NUMBER OF CUSTOMER VISITS, MLN
Pyaterochka 1,521.0 1,351.7 12.5
Perekrestok 168.9 160.4 5.3
Chizhik 84.2 36.4 131.4
X5 Group(10) 1,821.3 1,595.0 14.2
Q1 2024 average monthly ticket and customer visits by offline format
% change y-o-y
AVERAGE TICKET JANUARY 2024 FEBRUARY 2024 MARCH 2024
Pyaterochka 11.0 10.7 11.9
Perekrestok 14.1 11.6 12.9
Chizhik 2.8 4.6 7.3
X5 Group(10) 11.0 10.7 11.9
NUMBER OF CUSTOMER VISITS
Pyaterochka 9.6 15.7 12.5
Perekrestok 2.8 8.2 5.0
Chizhik 143.9 133.1 121.2
X5 Group(10) 11.3 17.3 14.1
EXPANSION DYNAMICS
Selling space and number of stores by format
SELLING SPACE, AS AT 31-MAR-24 AS AT 31-DEC-23 CHANGE AS AT 31-MAR-23 CHANGE Y-O-Y, %
SQUARE METRES (SQ. M) VS 31-DEC-23, %
Pyaterochka 8,438,777 8,339,205 1.2 7,634,733 10.5
Perekrestok 1,087,760 1,084,913 0.3 1,068,031 1.8
Chizhik 476,222 442,110 7.7 174,368 173.1
Joint dark stores 10,258 10,258 - 10,258 -
X5 Group(11) 10,335,915 10,206,011 1.3 9,203,045 12.3
NUMBER OF STORES
Pyaterochka 21,593 21,308 1.3 19,549 10.5
Perekrestok 978 972 0.6 956 2.3
Chizhik 1,616 1,500 7.7 591 173.4
Joint dark stores 9 9 - 9 -
X5 Group(11) 24,884 24,472 1.7 21,760 14.4
Selling space and number of stores added by format
SELLING SPACE, NET ADDED NET ADDED CHANGE Y-O-Y, %
SQUARE METRES (SQ. M) Q1 2024
Q1 2023
Pyaterochka 99,572 137,677 (27.7)
Perekrestok 2,847 (17,466) n/a
Chizhik 34,112 21,998 55.1
Joint dark stores - 2,171 n/a
X5 Group(11) 129,904 95,566 35.9
NET NUMBER OF STORES
Pyaterochka 285 385 (26.0)
Perekrestok 6 (15) n/a
Chizhik 116 74 56.8
Joint dark stores - 2 n/a
X5 Group(11) 412 437 (5.7)
DIGITAL BUSINESS PERFORMANCE
X5 DIGITAL Q1 2024 Q1 2023 CHANGE Y-O-Y, %
GMV,(12) RUB mln 50,615 27,879 81.6
Number of orders, ths 27,164 14,585 86.3
Average ticket, RUB (Vprok.ru) 4,629 5,097 (9.2)
Average ticket, RUB (express 1,699 1,595 6.5
delivery)
5POST
Number of parcels, ths 11,723 5,973 96.3
MNOGO LOSOSYA
GMV,(13) RUB mln 2,184 1,517 44.0
Number of orders, ths 539 426 26.8
Average ticket, RUB 2,384 2,109 13.0
KEY DRIVERS OF Q1 2024 RESULTS
External environment
• Food inflation in Q1 2024 totalled 7.5% year-on-year (vs 7.1%
year-on-year in Q4 2023).
• In physical terms, the food market continued to grow, driven by
rising real incomes and demonstrating an 8.6% year-on-year increase for
January-February 2024.
• Real wage growth remains stable despite accelerating inflation.
Nominal wages continue to grow steadily by an average of 16-17% year-on-year
(according to Rosstat) amid labour shortages.
• The labour market remains strong. Unemployment declined to a
record 2.8% in February, on the back of greater involvement of the population
in economic activity. The number of employed individuals amounted to 73.4
million people.
• The Bank of Russia left the key rate unchanged at 16.0% in Q1
2024.
Offline business development
• Pyaterochka's offline net sales demonstrated strong growth of
22.9% year-on-year, with LFL sales (including express delivery) increasing by
14.6% in Q1 2024. LFL traffic increased by 3.0% year-on-year, while the LFL
basket increased by 11.2% year-on-year, driven by accelerating inflation.
Pyaterochka's network continued to expand, with 399 new stores added in Q1
2024 (on a gross basis).
• Perekrestok's offline net sales increased by 14.9% year-on-year in
Q1 2024. LFL sales (including express delivery) increased by 16.8% in Q1 2024,
primarily driven by LFL basket growth.
• Chizhik's offline net sales increased by 142.2% year-on-year in Q1
2024. The network opened 116 new stores during the period and had a total of
1,616 stores in 43 regions of Russia as of 31 March 2024.
• The Store Director-Partner programme continues to deliver solid
results. The transformation of the store director's role generates additional
revenue in terms of LFL sales as well as EBITDAR. At the end of March 2024,
the programme covered 26% of Pyaterochka stores and, following the programme
relaunch, 6% of Perekrestok supermarkets.
Expansion and retail portfolio improvement
• X5 continues to focus on strengthening its positions in key
regions of operation and expanding its presence and market share organically,
as well as through selected tactical M&A opportunities.
• In Q1 2024, 399 gross new-concept Pyaterochka stores were opened;
in addition, 450 Pyaterochka stores were refurbished in line with the new
concept. The total number of stores operating under the new concept reached
9,532, or 44.1% of the Pyaterochka store base, as of 31 March 2024.
• 12 gross new-concept Perekrestok supermarkets were opened in Q1
2024; in addition, one Perekrestok supermarket was refurbished in line with
the new concept. As of 31 March 2024, 304 supermarkets, or 31.1% of the
Perekrestok store base, were operating under the new concept.
• In Q1 2024, as part of the Company's ongoing rationalisation
programme, X5 closed 114 Pyaterochka proximity stores, six Perekrestok
supermarkets and two KhlebSol stores.
• In February 2024, X5 Group acquired Forward-Market, a distributor
operating in the Republic of Bashkortostan. X5 took over the ownership of
distribution centres measuring a total of 28,000 square metres and a fleet of
47 vehicles.
• Pyaterochka launched operations in the Transbaikal Territory. In
March, the retail chain opened ten Pyaterochka stores in the city of Chita.
Loyalty programme
• At the end of Q1 2024, X5's loyalty programme had 79 million
active customers, while the programme's sales penetration reached 85.1%. Among
the 3.1 million loyalty programme customers who chose favourite product
categories, the average ticket was 8.2% higher than that of other loyalty
programme customers.
Digital business development
• In Q1 2024, X5's digital services had a total of 33.6 million
MAUs, an increase of 54.1% year-on-year.
• The GMV of X5 Digital in Q1 2024 reached RUB 50.6 billion,
increasing by 81.6% year-on-year, including VAT and gross of promo codes and
bonuses.
• Total digital business revenue (including X5 Digital, 5Post and
Mnogo Lososya) grew 81.7% year-on-year in Q1 2024 and contributed 2.1 p.p. to
the consolidated quarterly revenue growth rate of 26.9%. X5 Digital
successfully fulfilled over 382 thousand orders on peak days in March.
• X5 continues the rapid expansion of express delivery services from
Pyaterochka proximity stores and Perekrestok supermarkets. As of 31 March
2024, express delivery was available from 8,394 stores (7,326 Pyaterochka
stores, 908 Perekrestok supermarkets and 160 Chizhik hard discounters) as well
as 35 dark stores in 70 regions, up from 5,709 stores and 46 dark stores in 69
regions a year earlier. X5 aims to continue to develop its express delivery
services, as well as its partnerships with delivery aggregators, to provide
its customers with the convenience of an omnichannel shopping experience.
• In Q1 2024, 5Post's e-commerce delivery service revenue increased
by 126.5% year-on-year, driven by an increasing number of new partners.
5Post's financial performance significantly improved due to a growing share of
the service's domestic partners and the introduction of advertising services
for partners. 5Post fulfilled 11.7 million orders in Q1 2024, with over 20
thousand pickup points in operation, including over 5 thousand multi-parcel
lockers. 5Post is increasing the volume of deliveries it processes from
existing partners and is accelerating its integration with new partners.
Parcel lockers and pickup points in stores generate additional LFL traffic of
up to 2%-3%.
• The Mnogo Lososya ready-to-eat digital service was operating 73
dark kitchens (including three franchisees) and 325 cafe points at Perekrestok
supermarkets, as well as four cafe points at Auchan hypermarkets at the end of
March. Mnogo Lososya's online net sales increased by 45.7% year-on-year in Q1
2024.
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. Sales of the
express delivery service from stores and dark stores that have operated for
less than 12 full months are also included in LFL calculations.
3. Including Pokupochka, PokupALKO, Victoria, Kvartal, Deshevo and CASH.
4. Including Vprok.ru, express delivery, 5Post and Mnogo Lososya.
5. In the tables and text in this press release, immaterial deviations
in the calculation of % change, subtotals and totals are due to rounding.
6. Including Krasny Yar and Slata, as well as Mnogo Lososya cafe points
in Auchan. Including Karusel for Q1 2023.
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 2024 financial results.
8. Including Mnogo Lososya, Krasny Yar and Slata. Including Karusel for
Q1 2023.
9. Excluding Vprok.ru and Mnogo Lososya; including Chizhik, Krasny Yar
and Slata.
10. Including Krasny Yar and Slata. Including Karusel for Q1 2023.
11. Including Vprok.ru dark stores, Mnogo Lososya dark kitchens, Krasny Yar
and Slata stores.
12. GMV is the value of delivered orders at their final prices (incl. VAT),
gross of promo codes and bonuses applied.
13. GMV is the value of delivered orders at their final prices (incl. VAT),
gross of promo codes and bonuses applied, and including delivery and cafe
points in Perekrestok and Auchan stores. Sales at cafe points (incl. VAT)
totalled RUB 824 mln in Q1 2024 and RUB 571 mln in Q1 2023.
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, express delivery and Mnogo Lososya.
As of 31 March 2024, X5 had 24,884 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 21,593 Pyaterochka proximity stores, 978
Perekrestok supermarkets, 1,616 Chizhik hard discounters and 612 Krasny Yar
and Slata stores. The Company operates 61 DCs and 5,504 Company-owned trucks
across the Russian Federation.
X5 is one of the largest employers in Russia. The Company employs over 378
thousand people.
For the full year 2023, revenue totalled RUB 3,145,859 million (USD 36,903
million*), EBITDA pre-IFRS 16 reached RUB 214,764 million (USD 2,519
million*), and net profit pre-IFRS 16 for the period amounted to RUB 90,284
million (USD 1,059 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: 85.2466 USD/RUB
For further details please contact:
Polina Ugryumova
Head of Corporate Finance and IR
Tel.: +7 (495) 662-88-88 ext. 13-312
e-mail: Polina.Ugryumova@x5.ru
Maria Yazeva
Investor Relations Officer
Tel.: +7 (495) 662-88-88 ext. 13-147
e-mail: Maria.Yazeva@x5.ru
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTIAMATMTBBBTIRecent news on X5 Retail NV
See all newsREG - X5 Retail Group N.V - X5 acquires Nice Ice production facility
AnnouncementREG - X5 Retail Group N.V - Pyaterochka opens major DC in Samara Region
AnnouncementREG - X5 Retail Group N.V - X5 Group publishes its 2023 Sustainability Report
AnnouncementREG - X5 Retail Group N.V - X5's rights in Russian subsidiary suspended
AnnouncementREG - X5 Retail Group N.V - Moscow court postpones ruling on X5's subsidiary
Announcement