REG - X5 Retail Group N.V - X5 opens first hard discounters, DC in the Urals

X5 Retail NVAnnouncement

15/08/2022 09:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220815:nRSO9973Va&default-theme=true

RNS Number : 9973V  X5 Retail Group N.V.  15 August 2022

 

X5 OPENS FIRST HARD DISCOUNTERS AND DC IN THE URALS

 

Yekaterinburg, 15 August 2022 - X5 Group ("X5" or the "Company", LSE and
MOEX ticker: FIVE), a leading Russian food retailer, announces the launch of a
new distribution centre (DC) in Yekaterinburg for its Chizhik hard discounter
chain. The Company has also opened a total of eight new Chizhik stores in the
Sverdlovsk and Chelyabinsk regions, as well as in Perm Territory.

In the Sverdlovsk Region, X5 simultaneously opened three Chizhik stores for
customers in Yekaterinburg and another store in Revda 1  (#_ftn1) . By late
August, the Company plans to open 11 more hard discounters across the region,
to reach a total of 40 by year-end. X5 additionally opened two hard
discounters apiece in the cities of Chelyabinsk 2  (#_ftn2) and Perm. 3 
(#_ftn3)

In accordance with its target operating model, the Chizhik retail chain opened
its own DC in Yekaterinburg before entering the region. The facility was
inaugurated by X5 Group President Ekaterina Lobacheva and Sverdlovsk Region
Governor Evgeny Kuyvashev. The 18,700-sq m DC will receive shipments from
over 200 of the chain's partners, with more than 200 local employees
supporting its seamless operation.

"Chizhik has proven to be the format of choice for rational consumers, and it
continues its active expansion on the wave of increasing consumer interest. We
are pleased to see that the chain is gaining a foothold in the Urals and hope
to see local customers embrace the hard discounter model, along with its
socially important mission of providing affordable and quality produce," said
X5 Group President Ekaterina Lobacheva at the opening ceremony.

"The Sverdlovsk region is one of the largest regions in the country in terms
of retail turnover. And we do a lot to maintain this trend: we develop the
necessary infrastructure, work to attract new companies and create conditions
for the expansion of our regular partners. But our priority is to provide
every resident of the region, regardless of their place of residence and
income level, with high-quality, healthy and affordable products. The
management of X5 Group is doing a lot for retail chain development and is
strengthening cooperation with our manufacturers", said Sverdlovsk Region
Governor Evgeny Kuyvashev.

The DC will serve 250 stores in the Sverdlovsk and Chelyabinsk regions and
the Perm Territory.

The advantages of the facility include a multi-format operation model, which
enables shipping of ultra-fresh and frozen products, groceries and alcohol
thanks to the facility's ability to meet various storage requirements. X5 uses
its own fleet of delivery vehicles to transport products from the DC, with
drivers assigned specifically to Chizhik. This helps to ensure an excellent
level of service and streamline interactions within the supply chain. Together
with the first DC in the Sverdlovsk Region, Chizhik is launching a regional
office in Yekaterinburg to efficiently monitor all store and DC processes.

Chizhik's unique value proposition combines attractive prices with high
product quality. The format's pricing policy is based on a more accessible
food basket compared to the market average and is built around the motto "low
price every day", meaning that the retail chain maintains consistently low
prices for the entire product range. The store's visual design embodies
simplicity and incorporates modern trends with its wide passages, easy-to-read
price tags, and products offered in boxes and pallets. The product range
comprises around 800 SKUs, including 300 private labels that have already
proven popular among customers. These include brands such as Svetaevo, Verner,
Shchedry God, Greenola, Axl, Tafo and others.

Chizhik stores currently operate in Moscow and the Moscow Region, as well as
in the Republic of Bashkortostan, Tver, Tula, Vladimir, Nizhny Novgorod,
Voronezh and Lipetsk regions. In 2022, X5 plans to open more than 400 new
Chizhik stores in line with its strategy to accelerate the expansion of its
hard discounter network.

 

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE; Expert RA: 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, 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 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                                                 Maria Yazeva

 Head of Corporate Finance and IR                                 Investor Relations Officer

 Tel.: +7 (495) 662-88-88 ext. 27-300                             Tel.: +7 (495) 662-88-88 ext. 13-147

 e-mail: Varvara.Kiseleva@x5.ru (mailto:Varvara.Kiseleva@x5.ru)   e-mail: Maria.Yazeva@x5.ru (mailto:Maria.Yazeva@x5.ru)

 

 

(#_ftnref1)  1  (https://www.rnssubmit.com/ns/#_ftn1) Yekaterinburg:
47 Volgogradskaya St., 2 Krestinskogo St., 24 Serafimy Deryabinoy St.;
Revda: 9 Michurina St.

 2  (#_ftnref2) Chelyabinsk: 63 Rossiyskaya St., 23 Zaltsmana St.

 3  (#_ftnref3) Perm: 31 Mekhanoshina St., 258 Kosmonavtov Highway.

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  MSCKZGMRVKRGZZG