REG - X5 Retail Group N.V - X5 pilots food donation project for people in need

X5 Retail NVAnnouncement

26/07/2022 08:00

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RNS Number : 6670T  X5 Retail Group N.V.  26 July 2022

X5 GROUP LAUNCHES PILOT FOOD DONATION PROJECT FOR PEOPLE IN NEED

Moscow, 26 July 2022 – X5 Group (“X5” or the “Company”, LSE and
MOEX ticker: FIVE), a leading Russian food retailer, has partnered with
Foodsharing and Foodbank Rus to launch a pilot food sharing project that will
donate food to individuals in need. In its initial stage, the project will be
introduced at several Pyaterochka stores in Moscow and Chelyabinsk.

The project will seek to arrange for in-store collection of food that is
nearing its expiration date, train employees in the necessary procedures, and
establish efficient logistics to deliver the food to those who need it most.
At the outset, store employees will, on a daily basis, select bakery
products 1  that are set to expire in 1–2 days. These products will then be
collected by volunteers and distributed within several hours to individuals
supported by Foodbank Rus, a food aid charity, and Foodsharing, a non-profit
organisation.

After the pilot stage, X5 plans to roll out the initiative to other Russian
regions and expand the range of food products donated, with X5’s Perekrestok
supermarket stores and the Company’s distribution centres also coming on
board.

“Support for people in need has been a part of the Company’s sustainable
development agenda for a number of years. Since 2015, we have been promoting
the Basket of Kindness project, a food drive that has helped over
210,000 families. Now, we have initiated another food aid project that will
see even more people receive food donations and potentially reduce the amount
of food waste sent for disposal. We hope to soon have the necessary
infrastructure in place, which will enable us to scale up the project,” said
Elena Konnova, Director for Corporate Communications and Sustainable
Development at X5 Group.

“Millions of tonnes of food are thrown away every year in Russia because it
was not consumed in time. Food sharing is an effective tool for the rational
use of food that provides targeted aid to people and ensures that less
resources are wasted. Our team is delighted to join efforts with X5 Group. We
hope that other retailers will follow the industry leader’s example,” said
Alexandra Kumpan, Executive Director at Foodsharing.

“We have been promoting this approach in Russia for ten years now. Apart
from the organisational challenges involved, there are tax barriers that still
prevent businesses from setting up the food donation process on a large scale.
Removing the barrier on input VAT will open up significant resources, which
will enable businesses to provide support to the overwhelming majority of
people in need. We have recently made progress in this regard. For example, we
signed a strategic agreement with Russia’s Agency for Strategic Initiatives
to scale up the national food bank system, and last year we signed a strategic
agreement to develop retail food sharing together with X5. We have now
launched our first pilot projects in two regions. It is important to work out
and streamline all the processes on both the food bank and retail chain sides.
We are grateful to our partners, including X5 Group and its retail formats,
for their support and involvement. Our goal is to scale up the food bank
approach to help those in need and use resources sustainably without having a
negative impact on the environment,” commented Yulia Nazarova, President of
Foodbank Rus.

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE; RAEX: 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 Perekrestok, 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 Q1 2022, revenue totalled RUB 604,230 million
(USD 7,020 million**), adjusted EBITDA pre-IFRS 16 reached RUB 70,179 million
(USD 815 million**), and net profit pre-IFRS 16 amounted to RUB 2,499 million
(USD 29 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: 86.0693 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)

 

 1  Rye bread, wheat bread, rusks, bagels

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