REG - X5 Retail Group N.V - X5 Group Q2 2022 net sales increase 18.6%
18/07/2022 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:20220718:nRSR7851Sa&default-theme=true
RNS Number : 7851S X5 Retail Group N.V. 18 July 2022
X5 Group Q2 2022 net sales increase 18.6%
Amsterdam, 18 July 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 its
preliminary consolidated net retail sales and operational results for the
second quarter (Q2) and six months (H1) ended 30 June 2022.(1)
Q2 2022 HIGHLIGHTS
+18.6 % y-o-y
Total net sales increased by RUB 101.7 billion
11.7% y-o-y increase in like-for-like (LFL(2)) sales
6.9% contribution to sales growth from a 7.1% increase in selling space
+300 new stores
X5 net new stores in Q2 2022
Including 238 proximity stores, 3 supermarkets and 64 hard discounters. 2
hypermarkets net and 3 dark kitchens net were closed
6.8 RUB BLN 28x y-o-y
Chizhik net sales in Q2 2022
The new hard discounter format, Chizhik, demonstrated positive results, with
sales density(3) at RUB 663 thousand per square metre, which is 138% higher
than that of the proximity format
+19.3% y-o-y
Net offline retail sales for Pyaterochka
+11.3% y-o-y
Net offline retail sales for Perekrestok
14.7 RUB BLN +38.4% y-o-y
Digital business net sales(4)
+0.4 p.p. to the consolidated revenue growth rate
NET SALES PERFORMANCE
Sales of offline and digital businesses(5)
RUB MLN Q2 2022 Q2 2021 CHANGE H1 2022 H1 2021 CHANGE
Y-O-Y
Y-O-Y
Pyaterochka 530,236 444,444 19.3% 1,013,645 847,932 19.5%
Perekrestok 91,048 81,809 11.3% 182,338 164,645 10.7%
Karusel 4,464 8,450 (47.2%) 9,894 18,194 (45.6%)
Chizhik 6,818 245 28x 10,917 363 30x
Offline net sales 632,565 534,948 18.2% 1,216,793 1,031,134 18.0%
Digital businesses' net sales 14,711 10,630 38.4% 33,546 21,087 59.1%
Total net sales 647,276 545,578 18.6% 1,250,339 1,052,221 18.8%
Net retail sales(6) by format
Including express delivery, but excluding Vprok.ru Perekrestok and 5Post sales
RUB MLN Q2 2022 Q2 2021 CHANGE H1 2022 H1 2021 CHANGE
Y-O-Y
Y-O-Y
Pyaterochka 534,318 447,612 19.4% 1,023,511 854,322 19.8%
Perekrestok (excl. Vprok.ru) 95,345 84,344 13.0% 191,910 169,429 13.3%
Karusel 4,464 8,454 (47.2%) 9,894 18,203 (45.7%)
Chizhik 6,818 245 28x 10,917 363 30x
Net retail sales(7) 641,466 540,888 18.6% 1,237,233 1,042,618 18.7%
Q2 2022 LFL store performance by format
% change y-o-y(8)
Q2 2022 H1 2022
SALES TRAFFIC BASKET SALES TRAFFIC BASKET
Pyaterochka 12.3 0.9 11.4 12.5 2.4 9.9
Perekrestok 9.0 (1.5) 10.6 8.5 (0.6) 9.1
Karusel (14.6) (16.0) 1.6 (9.3) (14.7) 6.3
X5 Group 11.7 0.6 11.0 11.7 2.0 9.5
Q2 2022 monthly net RUB retail sales by format
% or multiple change y-o-y
APRIL 2022 MAY 2022 JUNE 2022
Pyaterochka 19.2 19.8 18.9
Perekrestok 11.7 12.4 9.7
Karusel (47.8) (47.0) (46.7)
Chizhik 33x 30x 23x
Offline business total 18.1 18.8 17.8
Digital business total 37.2 40.5 37.5
Total 18.5 19.3 18.2
AVERAGE TICKET AND NUMBER OF CUSTOMER VISITS(9)
Q2 2022 average ticket and customer visits by offline format
AVERAGE TICKET, RUB Q2 2022 Q2 2021 CHANGE H1 2022 H1 2021 CHANGE
Y-O-Y
Y-O-Y
Pyaterochka 438.6 394.1 11.3% 445.1 405.3 9.8%
Perekrestok 655.1 591.4 10.8% 677.1 621.0 9.0%
Karusel 1,045.5 984.0 6.2% 1,072.6 959.5 11.8%
Chizhik 689.1 476.5 44.6% 694.0 477.0 45.5%
X5 Group 465.1 419.5 10.8% 474.0 434.1 9.2%
# OF CUSTOMERS, MLN
Pyaterochka 1,402.1 1,304.0 7.5% 2,643.4 2,418.8 9.3%
Perekrestok 167.2 162.8 2.7% 324.9 311.3 4.4%
Karusel 4.9 9.9 (50.3%) 10.6 21.8 (51.3%)
Chizhik 11.3 0.6 19x 17.9 0.9 21x
X5 Group 1,585.5 1,477.5 7.3% 2,996.9 2,752.8 8.9%
Q2 2022 average monthly ticket and customer visits by offline format
% or multiple change y-o-y
AVERAGE TICKET APRIL 2022 MAY 2022 JUNE 2022
Pyaterochka 9.7 12.5 11.7
Perekrestok 10.0 12.1 10.2
Karusel 8.6 9.4 0.3
Chizhik 46.9 48.5 38.9
X5 Group 9.3 12.0 11.0
# OF CUSTOMERS
Pyaterochka 9.1 6.6 6.9
Perekrestok 3.4 3.0 1.8
Karusel (51.7) (51.7) (47.1)
Chizhik 22x 20x 17x
X5 Group 8.7 6.5 6.8
EXPANSION DYNAMICS
Selling space and number of stores by format
SELLING SPACE, AS AT 30-JUN-22 AS AT 31-DEC-21 CHANGE AS AT 30-JUN-21 CHANGE Y-O-Y, %
SQUARE METRES (SQ. M)
VS 31-DEC-21, %
OR MULTIPLE
Pyaterochka 7,271,291 7,048,488 3.2 6,782,960 7.2
Perekrestok 1,109,171 1,098,905 0.9 1,058,533 4.8
Karusel 100,931 128,063 (21.2) 160,923 (37.3)
Chizhik 44,129 20,327 117.1 4,008 11x
X5 Group(10) 8,639,691 8,409,757 2.7 8,065,772 7.1
NUMBER OF STORES
Pyaterochka 18,558 17,972 3.3 17,268 7.5
Perekrestok 986 990 (0.4) 968 1.9
Karusel 26 33 (21.2) 40 (35.0)
Chizhik 153 72 112.5 15 10x
X5 Group(10) 19,779 19,121 3.4 18,324 7.9
Selling space and number of stores added by format
SELLING SPACE, NET ADDED NET ADDED CHANGE NET ADDED NET ADDED CHANGE
SQUARE METRES (SQ. M)
Y-O-Y
Y-O-Y
Q2 2022 Q2 2021 H1 2022 H1 2021
Pyaterochka 87,838 126,080 (30.3%) 222,803 241,337 (7.7%)
Perekrestok 13,028 38,679 (66.3%) 10,266 44,673 (77.0%)
Karusel (8,051) (35,210) (77.1%) (27,132) (61,196) (55.7%)
Chizhik 18,768 2,770 7x 23,802 3,028 8x
X5 Group(10) 111,275 127,880 (13.0%) 229,934 225,716 1.9%
NET NUMBER OF STORES
Pyaterochka 238 308 (22.7%) 586 559 4.8%
Perekrestok 3 28 (89.3%) (4) 35 n/a
Karusel (2) (9) (77.8%) (7) (16) (56.3%)
Chizhik 64 10 6x 81 11 7x
X5 Group(10) 300 341 (12.0%) 658 617 6.6%
DIGITAL BUSINESSES' PERFORMANCE
Q2 2022 Q2 2021 CHANGE H1 2022 H1 2021 CHANGE
Y-O-Y
Y-O-Y
VPROK.RU PEREKRESTOK
GMV,(11) RUB mln 6,269 5,056 24.0 14,033 10,317 36.0
Number of orders, ths 1,280 1,000 28.0 2,924 2,171 34.7
Average ticket, RUB 4,745 4,877 (2.7) 4,627 4,596 0.7
EXPRESS DELIVERY
GMV,(11) RUB mln 9,642 6,813 41.5 22,601 13,292 70.0
Number of orders, ths 5,357 4,239 26.4 12,611 8,342 51.2
Average ticket, RUB 1,776 1,526 16.4 1,748 1,522 14.8
5POST
Number of parcels, ths 5,022 4,678 7.4% 13,401 8,658 54.8%
MNOGO LOSOSYA
Net sales, RUB mln 522 233 123.8% 1,002 301 3x
Number of orders, ths 358 207 73.1% 705 257 103.4%
Average ticket, RUB 1,748 1,498 16.7% 1,759 1,612 9.1%
KEY DRIVERS FOR Q2 2022 RESULTS
External environment
• Food inflation in Q2 2022 was 19.5% year-on-year (13.5% in Q1
2022). The growth rate of food prices slowed down throughout the quarter
(17.8% in June). Deflationary factors included the strengthening of the ruble
and the growth of supply in certain categories, such as fruit and vegetable
products, eggs and sugar.
• The increase in inflation in April led to a decrease in real wages
and pensions by 7.2% and 8.8% year-on-year, respectively. The growth of
nominal wages is gradually slowing down on the back of employment growth.
• The unemployment rate in May broke the April record and decreased
from 4.0% to 3.9%, with a consistently high number of people employed (71.9
million).
• People are switching to a model of lean consumption driven by a
reduction in real disposable incomes. Sales of food products in real terms in
April and May decreased by 1.7% and 1.8% year-on-year, respectively.
• The Bank of Russia in Q2 2022 lowered the key rate from 20% to
9.5%.
Offline business development
• Pyaterochka's offline net sales demonstrated strong growth by
19.3% year-on-year, with LFL sales increasing by 12.3% in Q2 2022. LFL traffic
increased by 0.9% year-on-year, while the LFL basket increased by 11.4%
year-on-year as a result of normalisation of customer behaviour as compared to
Q1 2022 and accelerating inflation in Q2 2022. Pyaterochka's network continued
to expand, with 285 new stores in Q2 2022 (on a gross basis).
• Perekrestok's offline net sales increased by 11.3% year-on-year in
Q2 2022, with LFL sales growth at 9.0% in Q2 2022, affected by decreasing
traffic in shopping malls (approximately half of Perekrestok supermarkets are
located in shopping malls).
• Chizhik's net sales increased by 28 times year-on-year in Q2 2022.
The network opened 64 new stores during the period and reached 153 stores as
of 30 June 2022. We expect a strong acceleration of openings in H2 2022.
• In Q2 2022, Karusel's offline net sales decreased by 47.2%, driven
by downsizing as part of the format's transformation programme, with LFL sales
down by 14.6% mainly due to activities in some of the remaining Karusel stores
preparing for closure.
• Over 10 thousand self-checkout machines at Pyaterochka proximity
stores are connected to the Faster Payments System (FPS) as of 30 June 2022.
The system provides an option to use a mobile phone to make a payment and
increases customer convenience and loyalty.
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.
• 285 gross new-concept Pyaterochka stores were opened in Q2 2022.
In addition, 8 Pyaterochka stores were refurbished in line with the new
concept. The total number of stores operating under the new concept reached
5,314, or 29% of the Pyaterochka store base, as of 30 June 2022.
• One Perekrestok supermarket was opened following refurbishment in
Q2 2022. As of 30 June 2022, 237 supermarkets, or 24% of the Perekrestok store
base, were operating under the new concept.
• In June 2022, X5 acquired 15 PRISMA stores in St Petersburg from
SOK RETAIL INT. OY, a Finnish holding company that has announced its
withdrawal from Russia. Almost all stores were rebranded into X5's Perekrestok
supermarkets by the end of June.
• In Q2 2022, as part of the Company's ongoing rationalisation
programme, X5 closed 47 proximity stores, 10 supermarkets, two hypermarkets
and five dark kitchens.
• In Q2 2022, X5 opened two new distribution centres in the Bryansk
region (35 ths sq. m) and Voronezh region (12 ths sq. m.) to serve the
proximity and hard discounter formats, respectively.
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 Q2
2022, down 14.5% year-on-year on the back of limited functionality due to the
transition to a new software system. Loyalty card penetration in sales in June
reached 65% at Pyaterochka, 80% at Perekrestok and 90% at Karusel.
• In June, X5 started transferring its loyalty programmes to a new
processing system based on domestic technologies. X5 will fully migrate to the
new processing system as early as this summer, including the in-app use of
loyalty cards, and will kick off the development of the loyalty programme's
functionality.
Development of digital businesses
• X5 completed the restructuring of its online businesses into a
separate business unit, X5 Digital, which will manage the technological
platform for express delivery from Pyaterochka and Perekrestok as well as
Vprok.ru Perekrestok, including respective infrastructure.
• In Q2 2022, X5 digital services had a total of 16.1 million MAUs,
an increase of 17% year-on-year.
• The combined GMV of Vprok.ru Perekrestok and express delivery
services in Q2 2022 reached RUB 15.9 billion, up 34.1% year-on-year, including
VAT and gross of promo codes and bonuses with express delivery GMV growing
41.5% year-on-year.
• Total digital business revenue (including Vprok.ru Perekrestok,
express delivery, 5Post and Mnogo Lososya) grew 38.4% year-on-year in Q2 2022
and contributed 0.4 p.p. to the consolidated quarterly revenue growth rate of
18.6%. Vprok.ru Perekrestok and express delivery successfully fulfilled 100
thousand orders on peak days in April.
• X5 continues the rapid expansion of express delivery services from
Pyaterochka proximity stores and Perekrestok supermarkets. As of 30 June 2022,
express delivery service was available from 1,718 stores (1,007 Pyaterochka
stores and 711 Perekrestok supermarkets) as well as 45 dark stores in 54
regions, compared with 1,450 stores and 36 regions a year earlier. X5 aims to
continue development of its express delivery services to provide its customers
the unique convenience of the omnichannel shopping experience.
• In Q2 2022 the total number of Vprok.ru Perekrestok orders
increased by 28.0% year-on-year and reached 1.3 million in Q2 2022.
• In Q2 2022, 5Post's e-commerce delivery service revenue increased
by 12.8% year-on-year with growth slowing down as a result of a temporary
reduction in number of parcels from international providers during the
quarter. Orders fulfilled by 5Post reached 5 million in Q2 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 June, it
was operating 54 dark kitchens (including four franchisees).
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. 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.
7. Including Mnogo Lososya.
8. Excluding Vprok.ru Perekrestok.
9. Excluding Vprok.ru Perekrestok.
10. Including Vprok.ru Perekrestok dark stores and Mnogo Lososya dark
kitchens.
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.
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
Head of Corporate Finance and IR
Tel.: +7 (495) 662-88-88 ext. 27-300
e-mail: Varvara.Kiseleva@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 TSTBKFBNABKKAODRecent news on X5 Retail NV
See all newsREG - X5 Retail Group N.V - X5 Retail Group N.V. announces AGM results
AnnouncementREG - X5 Retail Group N.V - X5 notifies of change to corporate website
AnnouncementREG - X5 Retail Group N.V - Court issues full decision on X5's subsidiary
AnnouncementREG - X5 Retail Group N.V - X5 acquires Nice Ice production facility
AnnouncementREG - X5 Retail Group N.V - Pyaterochka opens major DC in Samara Region
Announcement