REG - X5 Retail Group N.V - X5 Group Q2 2023 net sales increase 19.1%
18/07/2023 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:20230718:nRSR2752Ga&default-theme=true
RNS Number : 2752G X5 Retail Group N.V. 18 July 2023
X5 Group Q2 2023 net sales increase 19.1%
Digital business net sales up 83.7%
Amsterdam, 18 July 2023 - 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 2023(1).
Q2 2023 HIGHLIGHTS
+19.1% y-o-y
Total net sales increased by RUB 123.4 billion driven by 7.8% y-o-y increase
in like-for-like (LFL(2)) sales and selling space expansion
+922 new stores
X5 net new stores in Q2 2023 Including 699 proximity stores, 218 hard
discounters and 5 dark kitchens
4x y-o-y
Chizhik net sales increased by RUB 19.8 billion, totalling RUB 26.6 billion in
Q2 2023
Chizhik opened 218 stores in Q2 2023
+14.1% y-o-y
Net offline retail sales for Pyaterochka increased by RUB 74.6 billion,
reaching RUB 604.8 billion
+1.5% y-o-y
Net offline retail sales for Perekrestok increased by RUB 1.4 billion,
reaching RUB 92.4 billion
83.7% y-o-y
Digital business net sales(3) increased by RUB 12.3 billion, totalling RUB
27.0 billion
3.5% of total net sales
+1.5 p.p. of the consolidated revenue growth rate
NET SALES PERFORMANCE
Sales of offline and digital businesses(4)
RUB MLN Q2 2023 Q2 2022 CHANGE H1 2023 H1 2022 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 604,841 530,236 14.1 1,142,783 1,013,645 12.7
Perekrestok 92,426 91,048 1.5 186,170 182,338 2.1
Chizhik 26,559 6,818 4x 45,295 10,917 4x
Offline net sales(5) 743,651 632,565 17.6 1,413,408 1,216,793 16.2
Digital businesses' net sales 27,018 14,711 83.7 52,628 33,546 56.9
Total net sales 770,669 647,276 19.1 1,466,036 1,250,339 17.3
Net retail sales(6) by format
Including express delivery, excluding Vprok.ru and 5Post sales
RUB MLN Q2 2023 Q2 2022 CHANGE H1 2023 H1 2022 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 616,986 534,318 15.5 1,165,898 1,023,511 13.9
Perekrestok 100,401 95,345 5.3 201,843 191,910 5.2
Chizhik 26,586 6,818 4x 45,330 10,917 4x
Net retail sales(7) 764,581 641,466 19.2 1,453,759 1,237,233 17.5
Q2 and H1 2023 LFL store performance by format
% change y-o-y
Q2 2023 H1 2023
SALES TRAFFIC BASKET SALES TRAFFIC BASKET
Pyaterochka 8.5 7.2 1.2 7.8 5.6 2.0
Perekrestok 4.6 2.3 2.3 4.3 1.8 2.5
X5 Group(8) 7.8 6.6 1.1 7.2 5.2 1.9
Q2 2023 monthly net retail sales (RUB) by format
change y-o-y, % or multiple
APRIL 2023 MAY 2023 JUNE 2023
Pyaterochka 13.6 14.2 14.3
Perekrestok 1.0 0.5 3.2
Chizhik 4x 4x 4x
Offline business total 16.8 17.5 18.4
Digital business total 67.0 87.6 98.7
Total 18.0 19.0 20.1
AVERAGE TICKET AND NUMBER OF CUSTOMER VISITS
Q2 and H1 2023 average ticket and customer visits by offline format
AVERAGE TICKET, RUB Q2 2023 Q2 2022 CHANGE H1 2023 H1 2022 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 442.7 438.6 0.9 453.1 445.1 1.8
Perekrestok 673.4 655.1 2.8 697.1 677.1 2.9
Chizhik 557.6 689.1 (19.1) 569.0 694.0 (18.0)
X5 Group(9) 467.3 465.1 0.5 479.8 474.0 1.2
NUMBER OF CUSTOMER VISITS, MLN
Pyaterochka 1,594.9 1,402.1 13.8 2,946.6 2,643.4 11.5
Perekrestok 170.3 167.2 1.8 330.7 324.9 1.8
Chizhik 54.2 11.3 5x 90.6 17.9 5x
X5 Group(9) 1,869.5 1,585.5 17.9 3,464.6 2,996.9 15.6
Q2 2023 average monthly ticket and customer visits by offline format
change y-o-y, % or multiple
AVERAGE TICKET APRIL 2023 MAY 2023 JUNE 2023
Pyaterochka 1.7 (0.7) 1.9
Perekrestok 2.5 0.6 5.4
Chizhik (22.0) (20.6) (15.1)
X5 Group(9) 1.0 (1.3) 1.8
NUMBER OF CUSTOMER VISITS
Pyaterochka 12.5 15.7 13.0
Perekrestok 1.9 2.9 0.7
Chizhik 5x 5x 5x
X5 Group(9) 16.6 19.8 17.3
EXPANSION DYNAMICS
Selling space and number of stores by format
SELLING SPACE, AS AT 30-JUN-23 AS AT 31-DEC-22 CHANGE AS AT 30-JUN-22 CHANGE Y-O-Y,
SQUARE METRES (SQ. M)
VS 31-DEC-22, % OR MULTIPLE
% OR MULTIPLE
Pyaterochka 7,899,872 7,497,056 5.4 7,271,291 8.6
Perekrestok 1,067,171 1,085,496 (1.7) 1,107,702 (3.7)
Chizhik 239,559 152,370 57.2 44,129 5x
Joint dark stores 10,258 8,087 26.8 5,358 91.5
X5 Group(1)(0) 9,541,021 9,107,479 4.8 8,643,579 10.4
NUMBER OF STORES
Pyaterochka 20,248 19,164 5.7 18,558 9.1
Perekrestok 956 971 (1.5) 985 (2.9)
Chizhik 809 517 56.5 153 5x
Joint dark stores 9 7 28.6 4 125.0
X5 Group(1)(0) 22,682 21,323 6.4 19,782 14.7
Selling space and number of stores added by format
SELLING SPACE, NET ADDED NET ADDED CHANGE NET ADDED NET ADDED CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
SQUARE METRES Q2 2023 Q2 2022 H1 2023 H1 2022
Pyaterochka 265,139 87,838 3x 402,816 222,803 80.8
Perekrestok (860) 13,028 n/a (18,326) 8,797 n/a
Chizhik 65,191 18,768 3x 87,189 23,802 4x
Joint dark stores - 3,889 n/a 2,171 5,358 (59.5)
X5 Group(1)(0) 337,976 115,164 193.5 433,541 233,822 85.4
NET NUMBER OF STORES
Pyaterochka 699 238 3x 1,084 586 85.0
Perekrestok - 3 n/a (15) (5) n/a
Chizhik 218 64 3x 292 81 4x
Joint dark stores - 3 n/a 2 4 (50.0)
X5 Group(1)(0) 922 303 3x 1,359 661 2x
DIGITAL BUSINESS PERFORMANCE
VPROK.RU Q2 2023 Q2 2022 CHANGE H1 2023 H1 2022 CHANGE
Y-O-Y, % Y-O-Y, %
GMV,(1)(1) RUB mln 6,257 6,269 (0.2) 12,781 14,033 (8.9)
Number of orders, ths 1,060 1,280 (17.2) 2,212 2,924 (24.3)
Average ticket, RUB 5,775 4,745 21.7 5,637 4,627 21.8
EXPRESS DELIVERY
GMV,(1)(1) RUB mln 15,343 9,642 59.1 30,684 22,601 35.8
Number of orders, ths 15,018 5,357 180.4 28,448 12,611 125.6
Average ticket, RUB 1,526 1,776 (14.1) 1,559 1,748 (10.8)
5POST
Number of parcels, ths 6,399 5,022 27.4 12,372 13,401 (7.7)
MNOGO LOSOSYA
GMV,(12) RUB mln 1,682 952 76.6 3,199 1,719 86.1
Number of orders, ths 455 358 27.2 881 705 25.5
Average ticket, RUB 2,063 1,748 18.0 2,085 1,759 18.5
KEY DRIVERS OF Q2 2023 RESULTS
External environment
• Food deflation in Q2 2023 totalled 0.3% year-on-year (vs 7.2%
year-on-year inflation in Q1 2023). The slowing growth in food prices was
driven by the high base effect from Q2 2022, high stocks from last year's
harvest and favourable expectations for next year's harvest.
• In physical terms, the food market shifted to growth, driven by
decelerating inflation and a good harvest, and demonstrating a 4.2%
year-on-year increase for April-May 2023.
• Real wages increased by 5% on average from February to April 2023
due to rising nominal incomes and decelerating inflation. Nominal wages
increased amid labour shortages and a record drop in unemployment to 3.2% at
the end of May 2023.
• The Bank of Russia left the key rate unchanged at 7.5% in Q2 2023
but has signalled tightening on the back of an increase in inflationary
factors.
Offline business development
• Pyaterochka's offline net sales demonstrated strong growth of
14.1% year-on-year, with LFL sales increasing by 8.5% in Q2 2023. LFL traffic
increased by 7.2% year-on-year, while the LFL basket increased by 1.2%
year-on-year, driven by decelerating food inflation and the high base effect
from Q2 2022. Pyaterochka's network continued to expand, with 740 new stores
added in Q2 2023 (on a gross basis).
• Perekrestok's offline net sales increased by 1.5% year-on-year in
Q2 2023 with LFL sales growth of 4.6% in Q2 2023, driven by equal
contributions from increased LFL traffic and basket growth.
• Chizhik's offline net sales increased fourfold year-on-year in Q2
2023. The network opened 218 new stores during the period and had a total of
809 stores in 27 regions as of 30 June 2023. We expect a further acceleration
of openings in H2 2023.
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 Q2 2023, 442 gross new-concept Pyaterochka stores were opened;
in addition, 210 Pyaterochka stores were refurbished in line with the new
concept. The total number of stores operating under the new concept reached
7,312, or 36.1% of the Pyaterochka store base, as of 30 June 2023.
• Four gross new-concept Perekrestok supermarkets were opened in Q2
2023; in addition, three Perekrestok supermarkets were refurbished in line
with the new concept. As of 30 June 2023, 265 supermarkets, or 27.7% of the
Perekrestok store base, were operating under the new concept.
• In Q2 2023, as part of the Company's ongoing rationalisation
programme, X5 closed 41 proximity stores, four supermarkets and one dark
kitchen.
• In Q2 2023, X5 opened two new distribution centres in Krasnodar
(44 ths sq. m) and Volgograd (48 ths sq. m) to serve its Pyaterochka proximity
format, and opened two new distribution centres in Kazan (19 ths sq. m) and
Volgograd (8 ths sq. m) to support the regional expansion of its Chizhik hard
discounter format.
• In April 2023, X5 Group acquired Tamerlan, which operates the
Pokupochka and PokupALKO retail chains in Russia's Southern Federal District
and Stavropol Territory.
• Pyaterochka continued its expansion in the Far Eastern Federal
District, with 23 new stores opened in Q2 2023.
Loyalty programme
• At the end of Q2 2023, X5's loyalty programme had 72.5 million
active customers, while the programme's sales penetration reached 76.2%. The
average ticket of the 1.9 million loyalty programme customers who selected
favourite product categories was 7% higher than that of other loyalty
programme customers.
• In Q2 2023, X5's express delivery services, Mnogo Lososya and
Food.ru were integrated into the X5 Club loyalty programme.
Digital business development
• In Q2 2023, X5's digital services had a total of 21.4 million
MAUs, an increase of 33.4% year-on-year.
• The combined GMV of Vprok.ru and express delivery services in Q2
2023 reached RUB 22.1 billion, up 38.8% year-on-year, including VAT and gross
of promo codes and bonuses, with express delivery GMV growing 59.1%
year-on-year.
• Total digital business revenue (including Vprok.ru, express
delivery, 5Post and Mnogo Lososya) grew 83.7% year-on-year in Q2 2023 and
contributed 1.5 p.p. to the consolidated quarterly revenue growth rate of
19.1%. Vprok.ru and express delivery successfully fulfilled over 219 thousand
orders on peak days in June.
• X5 continues the rapid expansion of express delivery services from
Pyaterochka proximity stores and Perekrestok supermarkets. As of 30 June 2023,
express delivery was available from 6,509 stores (5,744 Pyaterochka stores and
765 Perekrestok supermarkets) as well as 45 dark stores in 69 regions, up from
1,718 stores and 45 dark stores in 54 regions a year earlier. X5 aims to
continue to develop its express delivery services as well as its partnerships
with aggregators to provide its customers with the convenience of an
omnichannel shopping experience.
• In Q2 2023, the total number of Vprok.ru orders decreased by 17%
year-on-year and totalled 1.1 million.
• In Q2 2023, 5Post's e-commerce delivery service revenue increased
by 54.3% 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 6.4 million orders in Q2 2023, with over 24 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 64
dark kitchens (including three franchisees) and 284 cafe points at Perekrestok
supermarkets at the end of June. Mnogo Lososya's online net sales increased by
50% year-on-year in Q2 2023.
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. Vprok.ru, express delivery, 5Post and Mnogo Lososya.
4. In the tables and text in this press release, immaterial deviations
in the calculation of % change, subtotals and totals are due to rounding.
5. Including Krasny Yar and Slata. Including Karusel for Q2 2022 and H1
2022.
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 Q2 2023 financial results.
7. Including Mnogo Lososya, Krasny Yar and Slata. Including Karusel for
Q2 2022 and H1 2022.
8. Excluding Krasny Yar and Slata, Vprok.ru and Mnogo Lososya; including
Chizhik.
9. Including Krasny Yar and Slata. Including Karusel for Q2 2022 and H1
2022.
10. Including Vprok.ru dark stores, Mnogo Lososya dark kitchens, Krasny Yar
and Slata stores. Including Karusel for Q2 2022 and H1 2022.
11. GMV is the value of delivered orders at their final prices (incl. VAT),
gross of promo codes and bonuses applied.
12. 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 stores. Sales at cafe points (incl. VAT) totalled RUB
692 mln in Q2 2023 and RUB 273 mln in Q2 2022 and are accounted for in
Perekrestok's revenue (excl. VAT).
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 and Mnogo Lososya.
As of 30 June 2023, X5 had 22,682 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 20,248 Pyaterochka
proximity stores, 956 Perekrestok supermarkets, 809 Chizhik hard discounters
and 596 Krasny Yar and Slata stores. The Company operates 59 DCs and 4,604
Company-owned trucks across the Russian Federation.
X5 is one of the largest employers in Russia. The Company employs over 358
thousand people.
For the full year 2022, revenue totalled RUB 2,605,232 million (USD 38,005
million*), EBITDA pre-IFRS 16 reached RUB 186,788 million (USD 2,725
million*), and net profit pre-IFRS 16 for the period amounted to RUB 52,248
million (USD 762 million*). In Q1 2023, revenue totalled RUB 696,364 million
(USD 9,569 million**), adjusted EBITDA pre-IFRS 16 reached RUB 40,236 million
(USD 553 million**), and net profit pre-IFRS 16 amounted to RUB 12,172 million
(USD 167 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: 68.5494 USD/RUB
** FX rate: 72.7738 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 MSCRRMATMTJBBIJRecent 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