REG - X5 Retail Group N.V - X5 Group Q3 2023 net sales increase 22.7%
17/10/2023 08:00
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RNS Number : 3594Q X5 Retail Group N.V. 17 October 2023
X5 Group Q3 2023 net sales increase 22.7%
Digital business net sales up 97.9%
Amsterdam, 17 October 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
third quarter (Q3) and nine months (9M) ended 30 September 2023(1).
Q3 2023 HIGHLIGHTS
+22.7% y-o-y
Total net sales increased by RUB 147.1 billion, driven by a 10.2% y-o-y
increase in like-for-like (LFL(2)) sales and selling space expansion.
+784 new stores
X5 net new stores in Q3 2023 including 513 proximity stores, 262 hard
discounters, 5 dark kitchens, and 5 Krasny Yar and Slata stores.
One Perekrestok supermarket was closed.
3x y-o-y
Chizhik net sales increased by RUB 21.6 billion, totalling RUB 31.4 billion in
Q3 2023.
Chizhik opened 262 stores in Q3 2023.
+18.7% y-o-y
Net retail sales for Pyaterochka(3) increased by RUB 100.7 billion, reaching
RUB 639.5 billion.
+9.1% y-o-y
Net retail sales for Perekrestok increased by RUB 8.2 billion, reaching RUB
97.3 billion.
97.9% y-o-y
Digital business net sales(4) increased by RUB 14.4 billion, totalling RUB
29.2 billion.
3.7% of total net sales.
+1.7 p.p. of the consolidated revenue growth rate.
NET SALES PERFORMANCE
Sales of offline and digital businesses(5)
RUB MLN Q3 2023 Q3 2022 CHANGE 9M 2023 9M 2022 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 625,287 534,474 17.0 1,768,071 1,548,119 14.2
Perekrestok 89,293 84,980 5.1 275,462 267,318 3.0
Chizhik 31,386 9,742 3x 76,685 20,659 4x
Offline net sales(6) 765,327 632,641 21.0 2,178,740 1,849,434 17.8
Digital businesses' net sales 29,182 14,749 97.9 81,806 48,295 69.4
Total net sales 794,509 647,390 22.7 2,260,546 1,897,729 19.1
( )
Net retail sales(7) by format
Including express delivery; excluding Vprok.ru and 5Post sales
RUB MLN Q3 2023 Q3 2022 CHANGE 9M 2023 9M 2022 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 639,516 538,842 18.7 1,805,414 1,562,353 15.6
Perekrestok 97,335 89,185 9.1 299,178 281,095 6.4
Chizhik 31,435 9,742 3x 76,765 20,659 4x
Net retail sales(8) 788,492 641,778 22.9 2,242,251 1,879,011 19.3
Q3 and 9M 2023 LFL store performance by format
% change y-o-y
Q3 2023 9M 2023
SALES TRAFFIC BASKET SALES TRAFFIC BASKET
Pyaterochka 10.4 6.1 4.1 8.7 5.8 2.7
Perekrestok 9.5 2.2 7.2 6.0 1.9 4.0
X5 Group(9) 10.2 5.7 4.3 8.2 5.4 2.7
Q3 2023 monthly net retail sales (RUB) by format
change y-o-y, % or multiple
JULY 2023 AUGUST 2023 SEPTEMBER 2023
Pyaterochka 14.1 17.2 19.8
Perekrestok 3.6 6.4 5.2
Chizhik 4x 3x 3x
Offline business total 18.4 21.3 23.4
Digital business total 99.5 100.7 93.9
Total 20.0 23.0 25.3
AVERAGE TICKET AND NUMBER OF CUSTOMER VISITS
Q3 and 9M 2023 average ticket and customer visits by offline format
AVERAGE TICKET, RUB Q3 2023 Q3 2022 CHANGE 9M 2023 9M 2022 CHANGE
Y-O-Y, % OR MULTIPLE
Y-O-Y, % OR MULTIPLE
Pyaterochka 440.1 422.2 4.2 448.4 437.0 2.6
Perekrestok 662.0 614.9 7.7 685.2 656.1 4.4
Chizhik 555.3 600.2 (7.5) 563.3 646.4 (12.8)
X5 Group(10) 463.3 444.9 4.1 473.8 463.6 2.2
NUMBER OF CUSTOMER VISITS, MLN
Pyaterochka 1,669.3 1,465.6 13.9 4,615.9 4,109.0 12.3
Perekrestok 168.3 165.5 1.7 499.0 490.5 1.7
Chizhik 64.3 18.5 3x 154.9 36.4 4x
X5 Group(10) 1,951.3 1,653.5 18.0 5,415.8 4,650.4 16.5
Q3 2023 average monthly ticket and customer visits by offline format
change y-o-y, % or multiple
AVERAGE TICKET JULY 2023 AUGUST 2023 SEPTEMBER 2023
Pyaterochka 3.3 5.8 3.6
Perekrestok 8.2 9.6 5.2
Chizhik (11.6) (6.3) (5.6)
X5 Group(10) 3.4 5.8 3.2
NUMBER OF CUSTOMER VISITS
Pyaterochka 11.9 12.5 17.6
Perekrestok (0.3) 0.6 4.8
Chizhik 4x 3x 3x
X5 Group(10) 16.1 16.4 21.8
EXPANSION DYNAMICS
Selling space and number of stores by format
SELLING SPACE, AS AT 30-SEP-23 AS AT 31-DEC-22 CHANGE AS AT 30-SEP-22 CHANGE Y-O-Y,
SQUARE METRES (SQ. M)
VS 31-DEC-22, % OR MULTIPLE
% OR MULTIPLE
Pyaterochka 8,139,969 7,497,056 8.6 7,385,832 10.2
Perekrestok 1,066,459 1,085,496 (1.8) 1,093,005 (2.4)
Chizhik 316,888 152,370 108.0 93,018 3x
Joint dark stores 10,258 8,087 26.8 5,358 91.5
X5 Group(11) 9,859,610 9,107,479 8.3 8,759,191 12.6
NUMBER OF STORES
Pyaterochka 20,761 19,164 8.3 18,865 10.1
Perekrestok 955 971 (1.6) 971 (1.6)
Chizhik 1,071 517 107.2 316 3x
Joint dark stores 9 7 28.6 4 125.0
X5 Group(11) 23,466 21,323 10.1 20,230 16.0
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 (SQ.M) Q3 2023 Q3 2022 9M 2023 9M 2022
Pyaterochka 240,097 114,542 109.6 642,913 337,344 90.6
Perekrestok (712) (14,697) n/a (19,038) (5,900) n/a
Chizhik 77,330 48,889 2x 164,518 72,691 2x
Joint dark stores - - n/a 2,171 5,358 (59.5)
X5 Group(11) 318,589 115,612 175.6 752,131 349,434 115.2
NET NUMBER OF STORES
Pyaterochka 513 307 67.1 1,597 893 78.8
Perekrestok (1) (14) n/a (16) (19) n/a
Chizhik 262 163 60.7 554 244 2x
Joint dark stores - - n/a 2 4 (50.0)
X5 Group(11) 784 448 75.0 2,143 1,109 93.2
DIGITAL BUSINESS PERFORMANCE
X5 DIGITAL Q3 2023 Q3 2022 CHANGE 9M 2023 9M 2022 CHANGE
Y-O-Y, % Y-O-Y, %
GMV,(12) RUB mln 31,871 15,861 100.9 88,870 52,508 69.3
Number of orders, ths 19,585 7,240 170.5 49,492 22,775 117.3
Average ticket, RUB (Vprok.ru) 5,926 4,698 26.1 5,726 4,647 23.2
Average ticket, RUB (express delivery) 1,368 1,651 (17.2) 1,487 1,717 (13.4)
5POST
Number of parcels, ths 6,593 5,718 15.3 18,964 19,119 (0.8)
MNOGO LOSOSYA
GMV,(13) RUB mln 1,927 564 3x 5,140 1,565 3x
Number of orders, ths 470 376 25.0 1,320 1,081 22.1
Average ticket, RUB 2,172 1,954 11.2 2,171 1,890 14.9
KEY DRIVERS OF Q3 2023 RESULTS
External environment
• Food inflation in Q3 2023 totalled 3.6% year-on-year (vs 0.3%
year-on-year deflation in Q2 2023).
• In physical terms, the food market continued to grow, driven by a
good harvest and rising real incomes and demonstrating a 4.6% year-on-year
increase for July-August 2023.
• Real wages growth is slowing down amid accelerating inflation.
Nominal wages continue to grow steadily by an average of 12%-14% year-on-year
in July-August amid labor shortages, in accordance with Rosstat.
• The labour market remains strong. Unemployment declined to a
record 3.0% in August, on the back of greater involvement of the population in
economic activity. The number of employed individuals amounted to 74.2 million
people in August.
• The Bank of Russia raised the key rate three times from 7.5% to
13.0% in Q3 2023, signalling a tighter approach in response to the growth of
pro-inflationary factors, especially from the budget, and the volatility of
the rouble exchange rate.
Offline business development
• Pyaterochka's offline net sales demonstrated strong growth of
17.0% year-on-year, with LFL sales increasing by 10.4% in Q3 2023. LFL traffic
increased by 6.1% year-on-year, while the LFL basket increased by 4.1%
year-on-year, driven by the high base effect from Q3 2022. Pyaterochka's
network continued to expand, with 598 new stores added in Q3 2023 (on a gross
basis).
• Perekrestok's offline net sales increased by 5.1% year-on-year in
Q3 2023 with LFL sales growth of 9.5% in Q3 2023, driven predominantly by LFL
basket growth.
• Chizhik's offline net sales increased threefold year-on-year in Q3
2023. The network opened 262 new stores during the period and had a total of
1,071 stores in 34 regions of Russia as of 30 September 2023. We expect a
further acceleration of store openings in Q4 2023.
• 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 September
2023, the programme covered 25% of Pyaterochka stores and 100% 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 Q3 2023, 477 gross new-concept Pyaterochka stores were opened;
in addition, 201 Pyaterochka stores were refurbished in line with the new
concept. The total number of stores operating under the new concept reached
7,962, or 38.4% of the Pyaterochka store base, as of 30 September 2023.
• Two gross new-concept Perekrestok supermarkets were opened in Q3
2023; in addition, four Perekrestok supermarkets were refurbished in line with
the new concept. As of 30 September 2023, 271 supermarkets, or 28.4% of the
Perekrestok store base, were operating under the new concept.
• In Q3 2023, as part of the Company's ongoing rationalisation
programme, X5 closed 76 Pyaterochka proximity stores, eight Pokupochka stores,
one Victoria store, three Perekrestok supermarkets and one Krasny Yar store.
• In Q3 2023, X5 opened a new distribution centre in Orenburg (32
ths sq. m) to serve its Pyaterochka proximity format, and opened a new
distribution centre in Krasnodar (14 ths sq. m) to support the regional
expansion of its Chizhik hard discounter format.
• In August 2023, X5 Group acquired Victoria Baltia, which operates
Victoria stores in the Kaliningrad and Moscow regions, as well as Deshevo
stores and the CASH hypermarket in the Kaliningrad region.
Loyalty programme
• At the end of Q3 2023, X5's loyalty programme had 74.7 million
active customers, while the programme's sales penetration reached 77.1%. The
average ticket of the 1.98 million loyalty programme customers who selected
favourite product categories was 6.3% higher than that of other loyalty
programme customers.
Digital business development
• In Q3 2023, X5's digital services had a total of 24.8 million
MAUs, an increase of 35.8% year-on-year.
• The GMV of X5 Digital in Q3 2023 reached RUB 31.9 billion,
doubling year-on-year, including VAT and gross of promo codes and bonuses.
• Total digital business revenue (including X5 Digital, 5Post and
Mnogo Lososya) grew 97.9% year-on-year in Q3 2023 and contributed 1.7 p.p. to
the consolidated quarterly revenue growth rate of 22.7%. X5 Digital
successfully fulfilled over 262 thousand orders on peak days in September.
• X5 continues the rapid expansion of express delivery services from
Pyaterochka proximity stores and Perekrestok supermarkets. As of 30 September
2023, express delivery was available from 7,828 stores (6,801 Pyaterochka
stores, 866 Perekrestok supermarkets and 161 Chizhik hard discounters) as well
as 44 dark stores in 69 regions, up from 2,633 stores and 45 dark stores in 60
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 Q3 2023, 5Post's e-commerce delivery service revenue increased
by 48.6% 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 6.6 million orders in Q3 2023, with over 25 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 69
dark kitchens (including three franchisees) and 302 cafe points at Perekrestok
supermarkets at the end of September. Mnogo Lososya's online net sales
increased by 50% year-on-year in Q3 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. Including Pokupochka, Pokupalko, Victoria, Deshevo, CASH.
4. 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. Including Karusel for Q3 2022 and 9M
2022.
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 Q3 2023 financial results.
8. Including Mnogo Lososya, Krasny Yar and Slata. Including Karusel for
Q3 2022 and 9M 2022.
9. Excluding Krasny Yar and Slata, Vprok.ru and Mnogo Lososya; including
Chizhik.
10. Including Krasny Yar and Slata. Including Karusel for Q3 2022 and 9M
2022.
11. Including Vprok.ru dark stores, Mnogo Lososya dark kitchens, Krasny Yar
and Slata stores. Including Karusel for Q3 2022 and 9M 2022.
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 stores. Sales at cafe points (incl. VAT) totalled RUB
853 mln in Q3 2023 and RUB 320 mln in Q3 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 September 2023, X5 had 23,466 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 20,761 Pyaterochka proximity stores,
955 Perekrestok supermarkets, 1,071 Chizhik hard discounters and 601 Krasny
Yar and Slata stores. The Company operates 61 DCs and 4,745 Company-owned
trucks across the Russian Federation.
X5 is one of the largest employers in Russia. The Company employs over 364
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 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: 68.5494 USD/RUB
** FX rate: 76.8996 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
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