REG - X5 Retail Group N.V - X5 Group Q3 2022 net sales increase 19.5%
17/10/2022 08:00
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RNS Number : 0201D X5 Retail Group N.V. 17 October 2022
X5 Group Q3 2022 net sales increase 19.5%
Amsterdam, 17 October 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
third quarter (Q3) and nine months (9M) ended 30 September 2022(1).
Q3 2022 HIGHLIGHTS
+19.5% y-o-y
Total net sales increased by RUB 105.4 billion
12.4% y-o-y increase in like-for-like (LFL(2)) sales
7.1% contribution to sales growth from a 6.6% increase in selling space
+448 new stores
X5 net new stores in Q3 2022
Including 307 proximity stores, 163 hard discounters and 2 dark kitchens. 14
supermarkets, 9 hypermarkets and 1 Vprok.ru mini-dark store were closed
9.7 RUB BLN 13x y-o-y
Chizhik net sales in Q3 2022
X5's new hard discounter format, Chizhik, demonstrated positive results, with
sales density2 at RUB 590 thousand per square metre, which is approximately 2
times higher than that of X5's proximity format
+20.1% y-o-y
Net offline retail sales for Pyaterochka
+7.8% y-o-y
Net offline retail sales for Perekrestok
14.7 RUB BLN +38.4% y-o-y
Digital business net sales(4
) 2.3% of total net sales
+0.4 p.p. of consolidated revenue growth rate
NET SALES PERFORMANCE
Sales of offline and digital businesses(5)
RUB MLN Q3 2022 Q3 2021 CHANGE 9M 2022 9M 2021 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 534,474 445,169 20.1 1,548,119 1,293,101 19.7
Perekrestok 84,980 78,856 7.8 267,318 243,501 9.8
Karusel 3,445 6,541 (47.3) 13,339 24,735 (46.1)
Chizhik 9,742 723 13x 20,659 1,086 19x
Offline net sales 632,641 531,289 19.1 1,849,434 1,562,423 18.4
Digital businesses' net sales 14,749 10,660 38.4 48,295 31,747 52.1
Total net sales 647,390 541,950 19.5 1,897,729 1,594,171 19.0
Net retail sales(6) by format
Including express delivery, excluding Vprok.ru and 5Post sales
RUB MLN Q3 2022 Q3 2021 CHANGE 9M 2022 9M 2021 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 538,842 448,065 20.3 1,562,353 1,302,386 20.0
Perekrestok 89,185 81,526 9.4 281,095 250,955 12.0
Karusel 3,445 6,546 (47.4) 13,339 24,750 (46.1)
Chizhik 9,742 723 13x 20,659 1,086 19x
Net retail sales(7) 641,778 537,161 19.5 1,879,011 1,579,779 18.9
Q3 2022 LFL store performance by format
% change y-o-y(8)
Q3 2022 9M 2022
SALES TRAFFIC BASKET SALES TRAFFIC BASKET
Pyaterochka 13.7 4.4 8.9 12.9 3.1 9.5
Perekrestok 6.3 (0.3) 6.6 7.8 (0.5) 8.3
X5 Group(9) 12.4 3.9 8.2 11.9 2.7 9.0
Q3 2022 monthly net RUB retail sales by format
% or multiple change y-o-y
JULY 2022 AUGUST 2022 SEPTEMBER 2022
Pyaterochka 20.2 21.5 18.4
Perekrestok 6.9 7.9 8.4
Karusel (45.0) (47.7) (49.8)
Chizhik 14x 13x 13x
Offline business total 18.8 20.3 18.1
Digital business total 35.8 41.7 37.7
Total 19.1 20.7 18.6
AVERAGE TICKET AND NUMBER OF CUSTOMER VISITS(10)
Q3 2022 average ticket and customer visits by offline format
AVERAGE TICKET, RUB Q3 2022 Q3 2021 CHANGE 9M 2022 9M 2021 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 422.2 387.8 8.9 437.0 399.1 9.5
Perekrestok 614.9 577.3 6.5 656.1 606.1 8.3
Karusel 1,018.0 1,018.2 0.0 1,058.0 974.4 8.6
Chizhik 600.2 512.4 17.1 646.4 500.0 29.3
X5 Group 444.9 411.5 8.1 463.6 426.2 8.8
NUMBER OF CUSTOMER VISITS, MLN
Pyaterochka 1,465.6 1,325.4 10.6 4,109.0 3,744.1 9.7
Perekrestok 165.5 161.4 2.6 490.5 472.7 3.8
Karusel 3.9 7.4 (47.6) 14.5 29.2 (50.4)
Chizhik 18.5 1.6 11x 36.4 2.5 15x
X5 Group 1,653.5 1,495.8 10.5 4,650.4 4,248.6 9.5
Q3 2022 average monthly ticket and customer visits by offline format
% or multiple change y-o-y
AVERAGE TICKET JULY 2022 AUGUST 2022 SEPTEMBER 2022
Pyaterochka 11.5 7.5 7.6
Perekrestok 8.4 3.6 7.6
Karusel 1.2 (1.8) 0.5
Chizhik 26.6 15.7 12.1
X5 Group 10.6 6.6 7.2
NUMBER OF CUSTOMER VISITS
Pyaterochka 8.1 13.4 10.3
Perekrestok 0.2 6.0 1.6
Karusel (45.7) (47.2) (50.3)
Chizhik 11x 11x 12x
X5 Group 7.9 13.4 10.4
EXPANSION DYNAMICS
Selling space and number of stores by format
SELLING SPACE, AS AT 30-SEP-22 AS AT 31-DEC-21 CHANGE AS AT 30-SEP-21 CHANGE Y-O-Y, %
SQUARE METRES (SQ. M)
VS 31-DEC-21, % OR MULTIPLE
OR MULTIPLE
Pyaterochka 7,385,832 7,048,488 4.8 6,909,602 6.9
Perekrestok 1,094,474 1,098,905 (0.4) 1,080,711 1.3
Karusel 67,746 128,063 (47.1) 133,071 (49.1)
Chizhik 93,018 20,327 5x 7,864 12x
X5 Group(11) 8,755,302 8,409,757 4.1 8,215,983 6.6
NUMBER OF STORES
Pyaterochka 18,865 17,972 5.0 17,600 7.2
Perekrestok 972 990 (1.8) 980 (0.8)
Karusel 17 33 (48.5) 34 (50.0)
Chizhik 316 72 4x 29 11x
X5 Group(11) 20,227 19,121 5.8 18,688 8.2
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, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Q3 2022 Q3 2021 9M 2022 9M 2021
Pyaterochka 114,542 126,643 (9.6) 337,344 367,980 (8.3)
Perekrestok (14,697) 22,179 n/a (4,431) 66,852 n/a
Karusel (33,185) (27,852) n/a (60,317) (89,048) n/a
Chizhik 48,889 3,856 13x 72,691 6,884 11x
X5 Group(11) 115,612 150,212 (23.0) 345,545 375,928 (8.1)
NET NUMBER OF STORES
Pyaterochka 307 332 (7.5) 893 891 0.2
Perekrestok (14) 12 n/a (18) 47 n/a
Karusel (9) (6) 50.0 (16) (22) (27.3)
Chizhik 163 14 12x 244 25 10x
X5 Group(11) 448 364 23.1 1,106 981 12.7
DIGITAL BUSINESSES' PERFORMANCE
Q3 2022 Q3 2021 CHANGE 9M 2022 9M 2021 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
VPROK.RU
GMV,(12) RUB mln 5,682 4,940 15.0 19,715 15,257 29.2
Number of orders, ths 1,193 1,058 12.7 4,117 3,229 27.5
Average ticket, RUB 4,698 4,513 4.1 4,647 4,569 1.7
EXPRESS DELIVERY
GMV,(12) RUB mln 10,179 6,705 51.8 32,793 19,999 64.0
Number of orders, ths 6,047 4,423 36.7 18,658 12,765 46.2
Average ticket, RUB 1,651 1,445 14.2 1,717 1,496 14.8
5POST
Number of parcels, ths 5,861 6,133 (4.4) 19,262 14,791 30.2
MNOGO LOSOSYA
Net sales, RUB mln 564 301 87.2 1,565 602 160.0
Number of orders, ths 376 251 49.8 1,081 509 112.4
Average ticket, RUB 1,954 1,548 26.2 1,890 1,585 19.2
KEY DRIVERS FOR Q3 2022 RESULTS
External environment
• Food inflation in Q3 2022 was 15.6% year-on-year (vs. 19.5%
year-on-year in Q2 2022). Deceleration in the growth rate of food prices was
driven by a good harvest of fruits and vegetables and grain crops, as well as
the strengthening of the rouble rate by 19% year-on-year.
• Food market growth stabilised. In July-August, physical volumes
decreased by 2% year-on-year (decreased by 1.9% year-on-year in Q2 2022).
Stabilisation was driven by the deceleration of inflation and the continued
growth of nominal wages and pensions.
• The labour market remains strong. Unemployment remained at a
record low of 3.8%-3.9% for the last four months, while wage growth averaged
10%-12% year-on-year.
• The Bank of Russia lowered the key rate to 7.5% (-2 p.p.) in Q3
2022 following the decrease in inflation and inflationary expectations for the
next year.
Offline business development
• Pyaterochka's offline net sales demonstrated strong growth of
20.1% year-on-year, with LFL sales increasing by 13.7% in Q3 2022. LFL traffic
increased by 4.4% year-on-year, while the LFL basket increased by 8.9%
year-on-year, driven by price investments and decelerating food inflation.
Pyaterochka's network continued to expand, with 337 new stores in Q3 2022 (on
a gross basis).
• Perekrestok's offline net sales increased by 7.8% year-on-year in
Q3 2022, with LFL sales growth at 6.3% in Q3 2022.
• Chizhik's net sales increased 13-fold year-on-year in Q3 2022. The
network opened 163 new stores during the period and reached 316 stores as of
30 September 2022. We expect further acceleration of openings in Q4 2022.
• In Q3 2022, Karusel's offline net sales decreased by 47.3%, driven
by downsizing as part of the format's transformation programme. LFL sales were
down by 19.5%, mainly due to activities in some of the remaining Karusel
stores preparing for closure.
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.
• 337 gross new-concept Pyaterochka stores were opened in Q3 2022;
in addition, 14 Pyaterochka stores were refurbished in line with the new
concept. The total number of stores operating under the new concept reached
5,660, or 30% of the Pyaterochka store base, as of 30 September 2022.
• Two Perekrestok supermarkets were opened following refurbishment
in Q3 2022 in addition to one new store opened. As of 30 September 2022, 240
supermarkets, or 25% of the Perekrestok store base, were operating under the
new concept.
• In August 2022, X5 agreed on the terms of a strategic partnership
with the Krasny Yar and Slata groups, which are among the leading retailers in
Eastern Siberia. Upon receiving all the necessary permits from regulators, X5
will obtain a 70% share in Krasny Yar's and Slata's businesses. The companies
will continue to operate under their own brands and retain their business
models. At the same time, some processes will be integrated with X5 to achieve
synergies, including in procurement and logistics.
• In Q3 2022, as part of the Company's ongoing rationalisation
programme, X5 closed 30 proximity stores, 15 supermarkets, nine hypermarkets,
one Vprok.ru mini-dark store and three dark kitchens.
• In Q3 2022, X5 opened one new distribution centre in Moscow (89
ths sq. m) to serve its Pyaterochka proximity format and three new
distribution centres in Moscow (17 ths sq. m), Ekaterinburg (19 ths sq. m) and
Ufa (8 ths sq. m) to support its Chizhik hard discounter format's regional
expansion.
• In September 2022, X5 signed a cooperation agreement with the
Russian Far East and Arctic Development Corporation to launch operations in
Russia's Far Eastern Federal District. X5 will carry out a comprehensive
analysis to review the opportunities for rolling out a modern retail chain in
the region. The Company's potential investment to build distribution centres
and stores in the region may reach RUB 10 billion in the next three years.
Loyalty programmes
• In Q3 2022, X5 Group relaunched the loyalty programmes of the
Pyaterochka and Perekrestok retail chains as X5 Club. Over 19 thousand stores
were connected to the new processing system, and more than 65 million
customers were transferred to the new programme. In Q3 2022, penetration in
sales reached 73%. The average ticket of an active customer when using a
loyalty card increased by 2.3 times compared to an active customer not using a
loyalty card.
• In November 2022, the functionality of the current loyalty
programmes will be expanded: customers will have an option to choose their
favourite product categories, receive personal offers and more.
Development of digital businesses
• In Q3 2022, X5 digital services had a total of 18.3 million MAUs,
an increase of 6% year-on-year.
• The combined GMV of Vprok.ru and express delivery services in Q3
2022 reached RUB 15.9 billion, up 36.2% year-on-year, including VAT and gross
of promo codes and bonuses, with express delivery GMV growing 51.8%
year-on-year.
• Total digital business revenue (including Vprok.ru, express
delivery, 5Post and Mnogo Lososya) grew 38.4% year-on-year in Q3 2022 and
contributed 0.4 p.p. to the consolidated quarterly revenue growth rate of
19.5%. Vprok.ru and express delivery successfully fulfilled 110 thousand
orders on peak days in September.
• X5 continues the rapid expansion of express delivery services from
Pyaterochka proximity stores and Perekrestok supermarkets. In August 2022, X5
partnered with SberMarket and Delivery Club, two major grocery and
ready-to-eat meal delivery aggregators, to expand its online delivery
offering. As of 30 September 2022, X5's express delivery service was available
from 2,633 stores (1,933 Pyaterochka stores and 700 Perekrestok supermarkets)
as well as 45 dark stores in 60 regions, compared with 1,350 stores and 38
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 the omnichannel shopping experience.
• In Q3 2022, the total number of Vprok.ru orders increased by 12.7%
year-on-year and reached 1.2 million in Q3 2022.
• In Q3 2022, 5Post's e-commerce delivery service revenue increased
by 3.6% year-on-year, with growth slowing down due to a decreased number of
parcels from international providers. Orders fulfilled by 5Post reached 5.9
million in Q3 2022, with over 23 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. A seasonal increase in demand and an
acceleration in revenue growth are expected in Q4 2022. 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, was operating 56 dark kitchens (including four
franchisees) and 165 sushi points in Perekrestok supermarkets at the end of
September. Mnogo Lososya's online net sales increased by 87.2% y-o-y in Q3
2022.
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, 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 Q3 2022 financial results.
7. Including Mnogo Lososya.
8. Excluding Vprok.ru.
9. Including Chizhik and Karusel.
10. Excluding Vprok.ru.
11. Including Vprok.ru dark stores and Mnogo Lososya dark kitchens.
12. GMV is the value of delivered orders at their final prices (incl. VAT),
gross of promo codes and bonuses applied.
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 September 2022, X5 had 20,227 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 18,865
Pyaterochka proximity stores, 972 Perekrestok supermarkets and 316 Chizhik
hard discounters. The Company operates 52 DCs and 4,247 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 H1 2022, revenue totalled RUB 1,252,180 million
(USD 16,412 million**), adjusted EBITDA pre-IFRS 16 reached RUB 104,909
million (USD 1,375 million**), and net profit pre-IFRS 16 amounted to RUB
33,731 million (USD 399 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: 76.2975 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 (mailto:Varvara.Kiseleva@x5.ru)
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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