REG - X5 Retail Group N.V - X5 Group sees net sales increase 15.3% in Q1 2023
18/04/2023 08:00
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RNS Number : 4936W X5 Retail Group N.V. 18 April 2023
X5 Group continues expansion, with Q1 2023 net sales increasing 15.3%
Amsterdam, 18 April 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 Q1
2023(1).
Q1 2023 HIGHLIGHTS
+15.3% y-o-y
Total net sales increased by RUB 92.3 billion
6.5% y-o-y increase in like-for-like (LFL(2)) sales
8.8% contribution to sales growth from a 7.9% increase in selling space
+437 new stores
X5 net new stores in Q1 2023
Including 385 proximity stores, 74 hard discounters, 2 joint dark stores, 2
dark kitchens and 1 Slata store.
15 supermarkets and 12 hypermarkets were closed.
5x y-o-y
Chizhik net sales increased by RUB 14.6 billion, totaling RUB 18.7 billion in
Q1 2023
Chizhik opened 74 stores in Q1 2023
+11.3% y-o-y
Net offline retail sales for Pyaterochka increased by RUB 54.5 billion,
reaching RUB 537.9 billion
+2.7% y-o-y
Net offline retail sales for Perekrestok increased by RUB 2.5 billion,
reaching RUB 93.7 billion
35.9 % y-o-y
Digital business net sales(3) increased by RUB 6.8 billion, totaling RUB 25.6
billion
3.7% of total net sales
+0.7 p.p. of consolidated revenue growth rate
NET SALES PERFORMANCE
Sales of offline and digital businesses(4)
RUB MLN Q1 2023 Q1 2022 CHANGE Y-O-Y,
% OR MULTIPLE
Pyaterochka 537,943 483,409 11.3
Perekrestok 93,744 91,290 2.7
Karusel 631 5,430 (88.4)
Chizhik 18,744 4,099 5x
Offline net sales(5) 669,764 584,228 14.6
Digital businesses' net sales 25,603 18,837 35.9
Total net sales 695,367 603,065 15.3
Net retail sales(6) by format
Including express delivery, excluding Vprok.ru and 5Post sales
RUB MLN Q1 2023 Q1 2022 CHANGE Y-O-Y,
% OR MULTIPLE
Pyaterochka 548,912 489,193 12.2
Perekrestok 101,442 96,565 5.1
Karusel 631 5,430 (88.4)
Chizhik 18,744 4,099 5x
Net retail sales(7) 689,179 595,767 15.7
Q1 2023 LFL store performance by format
% change y-o-y
SALES TRAFFIC BASKET
Pyaterochka 7.0 3.9 3.0
Perekrestok 4.1 1.3 2.7
X5 Group(8) 6.5 3.6 2.8
Q1 2023 monthly net retail sales (RUB) by format
change y-o-y ,% or multiple
JANUARY 2023 FEBRUARY 2023 MARCH 2023
Pyaterochka 15.3 14.3 5.5
Perekrestok 5.4 5.2 (1.6)
Karusel (73.6) (90.2) n/a
Chizhik 6x 5x 4x
Offline business total 15.2 14.6 5.8
Digital business total 38.7 35.3 34.1
Total 19.0 18.5 9.6
AVERAGE TICKET AND NUMBER OF CUSTOMER VISITS
Q1 2023 average ticket and customer visits by offline format
AVERAGE TICKET, RUB Q1 2023 Q1 2022 CHANGE Y-O-Y,
% OR MULTIPLE
Pyaterochka 465.4 452.4 2.9
Perekrestok 722.2 700.5 3.1
Karusel 1,098.9 1,095.9 0.3
Chizhik 586.0 702.5 (16.6)
X5 Group(9) 494.3 483.9 2.1
NUMBER OF CUSTOMER VISITS, MLN
Pyaterochka 1,351.7 1,241.3 8.9
Perekrestok 160.4 157.7 1.7
Karusel 0.7 5.7 (88.3)
Chizhik 36.4 6.6 5x
X5 Group(9) 1,595.0 1,411.4 13.0
Q1 2023 average monthly ticket and customer visits by offline format
change y-o-y, % or multiple
AVERAGE TICKET JANUARY 2023 FEBRUARY 2023 MARCH 2023
Pyaterochka 4.7 4.0 0.4
Perekrestok 3.5 4.8 1.3
Karusel 0.1 11.9 n/a
Chizhik (6.4) (12.7) (23.6)
X5 Group(9) 3.8 3.4 (0.3)
NUMBER OF CUSTOMER VISITS
Pyaterochka 11.4 10.8 5.2
Perekrestok 3.9 2.5 (0.8)
Karusel (73.6) (91.1) n/a
Chizhik 6x 6x 5x
X5 Group(9) 15.3 15.0 9.5
EXPANSION DYNAMICS
Selling space and number of stores by format
SELLING SPACE, AS AT 31-MAR-23 AS AT 31-DEC-22 CHANGE AS AT 31-MAR-22 CHANGE Y-O-Y,
SQUARE METRES (SQ. M)
VS 31-DEC-22, % OR MULTIPLE
% OR MULTIPLE
Pyaterochka 7,634,733 7,497,056 1.8 7,183,452 6.3
Perekrestok 1,068,031 1,085,496 (1.6) 1,094,674 (2.4)
Karusel - 49,225 n/a 108,982 n/a
Chizhik 174,368 152,370 14.4 25,361 7x
Joint dark stores 10,258 8,087 26.8 1,469 7x
X5 Group(1)(0) 9,203,045 9,107,479 1.0 8,528,416 7.9
NUMBER OF STORES
Pyaterochka 19,549 19,164 2.0 18,320 6.7
Perekrestok 956 971 (1.5) 982 (2.6)
Karusel - 12 n/a 28 n/a
Chizhik 591 517 14.3 89 7x
Joint dark stores 9 7 28.6 1 9x
X5 Group(1)(0) 21,760 21,323 2.0 19,479 11.7
Selling space and number of stores added by format
SELLING SPACE, NET ADDED NET ADDED CHANGE Y-O-Y,
SQUARE METRES (SQ. M) Q1 2023
% OR MULTIPLE
Q1 2022
Pyaterochka 137,677 134,964 2.0
Perekrestok (17,466) (4,232) n/a
Karusel (49,225) (19,081) n/a
Chizhik 21,998 5,034 4x
Joint dark stores 2,171 1,469 47.8
X5 Group(1)(0) 95,566 118,659 (19.5)
NET NUMBER OF STORES
Pyaterochka 385 348 10.6
Perekrestok (15) (8) n/a
Karusel (12) (5) n/a
Chizhik 74 17 4x
Joint dark stores 2 1 2x
X5 Group(1)(0) 437 358 22.1
DIGITAL BUSINESS PERFORMANCE
Q1 2023 Q1 2022 CHANGE Y-O-Y,
% OR MULTIPLE
VPROK.RU
GMV,(1)(1) RUB mln 6,036 7,764 (22.3)
Number of orders, ths 1,150 1,643 (30.0)
Average ticket, RUB 5,097 4,534 12.4
EXPRESS DELIVERY
GMV,(1)(1) RUB mln 21,844 12,961 68.5
Number of orders, ths 13,430 7,255 85.1
Average ticket, RUB 1,596 1,729 (7.7)
5POST
Number of parcels, ths 5,973 8,379 (28.7)
MNOGO LOSOSYA
GMV,(1)(2) RUB mln 1,517 767 97.9
Number of orders, ths 426 344 23.6
Average ticket, RUB 2,109 1,608 31.2
KEY DRIVERS FOR Q1 2023 RESULTS
External environment
· Food inflation in Q1 2023 amounted to 7.2% year-on-year (vs. 11.2%
year-on-year in Q4 2022). Food price growth decelerated relative to the high
base of Q1 2022 and due to the strong supply of food products on the back of
stable demand.
· The food market in physical terms continues to decline at a rate of
2-2.5% year-on-year.
· Real wage growth remains at a minimally positive level. Nominal wages
continue to grow steadily at an average rate of 10-12%.
· The labour market remains strong. Unemployment declined to a record
3.5% in February, and the number of employed people is at a five-year high of
72.9 million.
· The Bank of Russia left the key rate unchanged at 7.5% in Q1 2023.
Offline business development
· Pyaterochka's offline net sales demonstrated strong growth of 11.3%
year-on-year, with LFL sales increasing by 7.0% in Q1 2023. LFL traffic
increased by 3.9% year-on-year, while the LFL basket increased by 3.0%
year-on-year, driven by price investments and decelerating food inflation.
Pyaterochka's network continued to expand, with 412 new stores added in Q1
2023 (on a gross basis).
· Perekrestok's offline net sales increased by 2.7% year-on-year in Q1
2023, with LFL sales growth of 4.1% in Q1 2023, reflecting the closure of 17
stores in Q1 2023.
· Chizhik's net sales increased 5-fold year-on-year in Q1 2023. The
network opened 74 new stores during the period and had a total of 591 stores
in 14 regions as of 31 March 2023. We expect a further acceleration of
openings in the coming quarters.
· In Q1 2023, Karusel's offline net sales decreased by 88.4%, driven by
the completion of the format's transformation. Over the past few years, the
Company consistently reduced the chain's store count, with the last remaining
Karusel-branded hypermarket closing in late February this year and the format
completely shut down by early April.
· X5 continues to expand its private label portfolio, with the share of
private labels in revenue increasing by 1.8 p.p. y-o-y to 24.4% in Q1 2023.
· The share of X5's direct imports increased by 0.6 p.p. y-o-y to 7.5%
in Q1 2023. At the end of 2022, RVI (X5's importing legal entity) was Russia's
number-one importer of spirits by volume.
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.
· 412 gross new-concept Pyaterochka stores were opened in Q1 2023; in
addition, 217 Pyaterochka stores were refurbished in line with the new
concept. The total number of stores operating under the new concept reached
6,668, or 34.1% of the Pyaterochka store base, as of 31 March 2023.
· Two gross new-concept Perekrestok supermarkets were opened in Q1
2023. As of 31 March 2023, 261 supermarkets, or 27.3% of the Perekrestok store
base, were operating under the new concept.
· In Q1 2023, as part of the Company's ongoing rationalisation
programme, X5 closed 27 proximity stores, 17 supermarkets, 12 hypermarkets and
2 dark kitchens.
· In Q1 2023, X5 opened one new distribution centre in Khabarovsk (8.4
ths sq. m) to serve its Pyaterochka proximity format.
· Pyaterochka launched operations in the Russian Far East. In March,
the retail chain opened four stores in Vladivostok and four stores in
Khabarovsk.
Loyalty programme
· At the end of Q1 2023, the number of active loyalty programme
customers was 71.2 million, while the programme's sales penetration reached
78%. The average ticket of customers who select favourite categories is higher
by 8% (the number of such customers is 1.6 million).
Digital business development
· In Q1 2023, X5's digital services had a total of 21.8 million MAUs,
an increase of 14.9% year-on-year.
· The combined GMV of Vprok.ru and express delivery services in Q1 2023
reached RUB 27.9 billion, up 34.5% year-on-year, including VAT and gross of
promo codes and bonuses, with express delivery GMV growing 68.6% year-on-year.
· Total digital business revenue (including Vprok.ru, express delivery,
5Post and Mnogo Lososya) grew 35.9% year-on-year in Q1 2023 and contributed
0.7 p.p. to the consolidated quarterly revenue growth rate of 15.3%. Vprok.ru
and express delivery successfully fulfilled over 223 thousand orders on peak
days in March.
· X5 continues the rapid expansion of express delivery services from
its Pyaterochka proximity stores and Perekrestok supermarkets. As of 31 March
2023, express delivery was available from 5,709 stores (4,859 Pyaterochka
stores and 850 Perekrestok supermarkets) as well as 46 dark stores in 69
regions, compared with 1,722 stores and 45 dark stores in 52 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 Q1 2023, the total number of Vprok.ru orders decreased by 30%
year-on-year and reached 1.2 million in Q1 2023. In March 2023, X5 Group
expanded its partnership with Yandex Eats and Delivery Club to offer
deliveries from Vprok.ru in Moscow and St Petersburg.
· In Q1 2023, 5Post's e-commerce delivery service revenue decreased by
6.2% year-on-year due to a decreased number of parcels from international
providers. At the same time, 5Post's financial performance significantly
improved due to a growing share of the services' domestic partners. 5Post
fulfilled 6.0 million orders in Q1 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, which became part of
X5 Group in late March 2021, was operating 60 dark kitchens (including four
franchisees) and 257 café points in Perekrestok supermarkets at the end of
March. Mnogo Lososya's online net sales increased by 55.4% y-o-y in Q1 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 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 of this press release, immaterial deviations
in the calculation of % change, subtotals and totals are due to rounding.
5. Including Krasny Yar and Slata.
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 2023 financial results.
7. Including Mnogo Lososya, Krasny Yar and Slata.
8. Excluding Krasny Yar and Slata, Vprok.ru and Mnogo Lososya; including
Chizhik and Karusel.
9. Including Krasny Yar and Slata.
10. Including Vprok.ru dark stores, Mnogo Lososya dark kitchens, Krasny Yar
and Slata stores.
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. Sales of cafe points (incl. VAT) totalled RUB 571 mln
in Q1 2023 and RUB 135 mln in Q1 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 31 March 2023, X5 had 21,760 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 19,549 Pyaterochka
proximity stores, 956 Perekrestok supermarkets, 591 Chizhik hard discounters
and 596 Krasny Yar and Slata stores. The Company operates 55 DCs and 4,490
Company-owned trucks across the Russian Federation.
X5 is one of the largest employers in Russia. The Company employs over 345
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*).
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
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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