REG - X5 Retail Group N.V - X5 reports 19.2% revenue growth in Q3 2022
25/10/2022 08:00
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RNS Number : 9270D X5 Retail Group N.V. 25 October 2022
X5 reports 19.2% revenue growth in Q3 2022, 7.4% adj. EBITDA margin pre-IFRS
16
+19.2% y-o-y
Revenue growth in Q3 2022
driven by solid like-for-like (LFL)(1) sales and selling space expansion
+38.4 % y-o-y
Digital business (express delivery, Vprok.ru, 5Post and Mnogo Lososya) net
sales growth in Q3 2022
Digital business net sales amounted to RUB 14.7 billion, which comprised 2.3%
of consolidated Q3 2022 revenue
24.3% -186 b.p.
Gross margin under IFRS 16 in Q3 2022
(-182 b.p. to 24.0% pre-IFRS 16(2))
driven predominantly by lower commercial margin, partially compensated by
improved logistics efficiency
12.0% -95 b.p.
Adjusted EBITDA(3) margin under IFRS 16 in Q3 2022
(-47 b.p. to 7.4% pre-IFRS 16)
2.1% -11 b.p.
Net profit margin under IFRS 16 in Q3 2022
(-5 b.p. to 2.5% pre-IFRS 16)
2.41x
Net debt/EBITDA ratio as of 30 September 2022 (under IFRS 16)
(0.89x pre-IFRS 16)
Amsterdam, 25 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 released its
unaudited condensed consolidated interim financial information for the three
months (Q3) and nine months (9M) ended 30 September 2022, in accordance with
International Financial Reporting Standards as adopted by the European Union.
Igor Shekhterman X5 Chief Executive Officer
"In the second half of the year, we are focused on enhancing our customer
value proposition, boosting like-for-like sales and growing our market share.
In Q3, we prioritised the expansion of our Chizhik hard discounter format,
which saw a 19-fold increase in revenue year-on-year in 9M 2022 and is showing
results above our expectations. During the third quarter, we opened 163 new
Chizhik stores and expect to accelerate store openings in the following
quarter. Other areas of focus include the ongoing development of our
Pyaterochka proximity store network and further development of our
consolidated online business with profitability, efficiency and customer
convenience in mind.
Regarding the latter, we are leveraging our partnerships with delivery
aggregators Delivery Club and SberMarket to grow our online customer base, and
are expanding our own delivery services to more cities, having established a
presence in 60 regions of Russia as of late September.
Inorganic expansion was another key focus area in Q3. In August, we agreed on
a strategic partnership with Krasniy Yar and Slata, two leading retailers in
Eastern Siberia. This partnership will significantly advance our plans to
expand our offering to customers in the region. In September, X5 also signed a
cooperation agreement with the Russian Far East and Arctic Development
Corporation to launch operations in Russia's Far Eastern Federal District.
Throughout this time, X5 remains committed to meeting the needs of society. We
continue to invest in the prices of socially important categories of goods to
offset accelerating inflation and expect that this strategy, as well as our
evolving customer value proposition, will continue to impact our commercial
margin. We have also placed significant focus on the societal aspect of our
ESG strategy through a number of social initiatives, which we consider to be
particularly important at this time. In particular, during Q3 we launched a
pilot food sharing project in partnership with Foodsharing and Foodbank Rus to
donate food from our stores to individuals in need.
We continue to closely monitor the evolving market environment to ensure
efficiency and uninterrupted performance of our business as well as secure
best opportunities the market presents."
Profit and loss statement highlights(4)
RUB mln IFRS 16 Pre-IFRS 16
Q3 2022 Q3 2021 change, Q3 2022 Q3 2021 change,
y-o-y, % or multiple
y-o-y, % or multiple
Revenue 647,869 543,586 19.2 647,869 543,586 19.2
incl. net retail sales(5) 646,013 540,718 19.5 646,013 540,718 19.5
Pyaterochka (incl. express delivery) 538,842 448,065 20.3 538,842 448,065 20.3
Perekrestok (incl. Vprok.ru and express delivery) 93,421 85,083 9.8 93,421 85,083 9.8
Karusel 3,445 6,546 (47.4) 3,445 6,546 (47.4)
Chizhik 9,742 723 13x 9,742 723 13x
Gross profit 157,418 142,170 10.7 155,268 140,163 10.8
Gross profit margin, % 24.3 26.2 (186) b.p. 24.0 25.8 (182) b.p.
Adj. EBITDA 77,496 70,177 10.4 47,986 42,804 12.1
Adj. EBITDA margin, % 12.0 12.9 (95) b.p. 7.4 7.9 (47) b.p.
EBITDA 77,036 69,195 11.3 47,526 41,822 13.6
EBITDA margin, % 11.9 12.7 (84) b.p. 7.3 7.7 (36) b.p.
Operating profit 35,982 31,684 13.6 25,182 23,110 9.0
Operating profit margin, % 5.6 5.8 (27) b.p. 3.9 4.3 (36) b.p.
Net profit 13,844 12,225 13.2 15,931 13,647 16.7
Net profit margin, % 2.1 2.2 (11) b.p. 2.5 2.5 (5) b.p.
RUB mln IFRS 16 Pre-IFRS 16
9M 2022 9M 2021 change, 9M 2022 9M 2021 change,
y-o-y, % or multiple
y-o-y, % or multiple
Revenue 1,900,049 1,597,289 19.0 1,900,049 1,597,289 19.0
incl. net retail sales(6) 1,893,951 1,590,909 19.0 1,893,951 1,590,909 19.0
Pyaterochka (incl. express delivery) 1,562,353 1,302,386 20.0 1,562,353 1,302,386 20.0
Perekrestok (incl. Vprok.ru and express delivery) 296,036 262,084 13.0 296,036 262,084 13.0
Karusel 13,339 24,750 (46.1) 13,339 24,750 (46.1)
Chizhik 20,659 1,086 19x 20,659 1,086 19x
Gross profit 474,864 411,807 15.3 468,697 405,878 15.5
Gross profit margin, % 25.0 25.8 (79) b.p. 24.7 25.4 (74) b.p.
Adj. EBITDA 238,688 203,561 17.3 152,894 123,703 23.6
Adj. EBITDA margin, % 12.6 12.7 (18) b.p. 8.0 7.7 30 b.p.
EBITDA 236,744 200,755 17.9 150,950 120,897 24.9
EBITDA margin, % 12.5 12.6 (11) b.p. 7.9 7.6 38 b.p.
Operating profit 113,750 89,487 27.1 83,807 65,349 28.2
Operating profit margin, % 6.0 5.6 38 b.p. 4.4 4.1 32 b.p.
Net profit 43,105 34,783 23.9 46,395 38,943 19.1
Net profit margin, % 2.3 2.2 9 b.p. 2.4 2.4 0 b.p.
Revenue
Revenue growth reached 19.2% year-on-year in Q3 2022. Net retail sales
increased by 19.5%, driven by a combination of 6.6% selling space growth and
12.4% LFL sales growth, while X5's digital business sales grew by 38.4% y-o-y.
Selling space by format, square metres (sqm)
AS AT 30-SEP-22 AS AT 31-DEC-21 CHANGE AS AT 30-SEP-21 CHANGE Y-O-Y, % OR MULTIPLE
VS 31-DEC-21, % 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(7) 8,755,302 8,409,757 4.1 8,215,983 6.6
Q3 and 9M 2022 LFL store performance by format, % change y-o-y
In Q3 2022, LFL sales performance accelerated year-on-year to 12.4%, supported
by solid LFL results of Pyaterochka and Perekrestok at 13.7% and 6.3%,
respectively, on the back of accelerated inflation.
The LFL basket was the main driver of LFL sales in Q3 2022, with LFL traffic
in positive territory at 3.9% year-on-year, with Pyaterochka showing 4.4%
year-on-year growth.
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(8) 12.4 3.9 8.2 11.9 2.7 9.0
For more details on net retail sales performance, please refer to X5's Q3 2022
Trading Update
(https://www.x5.ru/wp-content/uploads/2022/10/q3_2022_trading_update_eng.pdf)
.
Gross profit margin
Gross profit margin under IFRS 16 decreased by 186 b.p. year-on-year to 24.3%
(decreased by 182 b.p. year-on-year to 24.0% pre-IFRS 16) in Q3 2022, mainly
due to lower commercial margin on the back of CVP transformation and
assortment adaptation in Pyaterochka, partially offset by improved logistics
efficiency.
Selling, general and administrative (SG&A) expenses (excl. D&A&I
and the impact of the Karusel transformation)
IFRS 16 Pre-IFRS 16
RUB mln Q3 2022 Q3 2021 change, Q3 2022 Q3 2021 change,
y-o-y, %
y-o-y, %
Staff costs (51,595) (47,257) 9.2 (51,595) (47,257) 9.2
% of revenue 8.0 8.7 (73) b.p. 8.0 8.7 (73) b.p.
incl. LTI and share-based payments (727) (889) (18.2) (727) (889) (18.2)
staff costs excl. LTI and share- 7.9 8.5 (68) b.p. 7.9 8.5 (68) b.p.
based payments as % of revenue
Lease expenses (5,412) (3,749) 44.4 (30,022) (26,483) 13.4
% of revenue 0.8 0.7 15 b.p. 4.6 4.9 (24) b.p.
Utilities (12,096) (10,892) 11.1 (12,096) (10,892) 11.1
% of revenue 1.9 2.0 (14) b.p. 1.9 2.0 (14) b.p.
Other store costs (5,827) (5,606) 3.9 (6,056) (5,813) 4.2
% of revenue 0.9 1.0 (13) b.p. 0.9 1.1 (13) b.p.
Third-party services (4,546) (4,972) (8.6) (4,448) (4,933) (9.8)
% of revenue 0.7 0.9 (21) b.p. 0.7 0.9 (22) b.p.
Other expenses (6,198) (6,295) (1.5) (7,780) (7,587) 2.5
% of revenue 1.0 1.2 (20) b.p. 1.2 1.4 (19) b.p.
SG&A (excl. D&A&I and the impact of the Karusel transformation) (85,674) (78,771) 8.8 (111,997) (102,965) 8.8
% of revenue 13.2 14.5 (127) b.p. 17.3 18.9 (165) b.p.
SG&A (excl. D&A&I, LTI, share-based payments and the impact of the (84,947) (77,882) 9.1 (111,270) (102,076) 9.0
Karusel transformation)
% of revenue 13.1 14.3 (122) b.p. 17.2 18.8 (160) b.p.
IFRS 16 Pre-IFRS 16
RUB mln 9M 2022 9M 2021 change, 9M 2022 9M 2021 change,
y-o-y, %
y-o-y, %
Staff costs (151,883) (135,240) 12.3 (151,883) (135,240) 12.3
% of revenue 8.0 8.5 (47) b.p. 8.0 8.5 (47) b.p.
incl. LTI and share-based payments (1,788) (2,495) (28.3) (1,788) (2,495) (28.3)
staff costs excl. LTI and share-based payments as % of revenue 7.9 8.3 (41) b.p. 7.9 8.3 (41) b.p.
Lease expenses (14,200) (10,156) 39.8 (87,244) (77,953) 11.9
% of revenue 0.7 0.6 11 b.p. 4.6 4.9 (29) b.p.
Utilities (37,085) (33,052) 12.2 (37,085) (33,052) 12.2
% of revenue 2.0 2.1 (12) b.p. 2.0 2.1 (12) b.p.
Other store costs (17,231) (16,418) 5.0 (17,896) (17,058) 4.9
% of revenue 0.9 1.0 (12) b.p. 0.9 1.1 (13) b.p.
Third-party services (12,485) (13,999) (10.8) (12,196) (13,795) (11.6)
% of revenue 0.7 0.9 (22) b.p. 0.6 0.9 (22) b.p.
Other expenses (21,899) (19,057) 14.9 (26,457) (22,391) 18.2
% of revenue 1.2 1.2 (4) b.p. 1.4 1.4 (1) b.p.
SG&A (excl. D&A&I and impact from the Karusel transformation) (254,783) (227,922) 11.8 (332,761) (299,489) 11.1
% of revenue 13.4 14.3 (86) b.p. 17.5 18.7 (124) b.p.
SG&A (excl. D&A&I, LTI, share-based payments and impact from the (252,995) (225,427) 12.2 (330,973) (296,994) 11.4
Karusel transformation)
% of revenue 13.3 14.1 (80) b.p. 17.4 18.6 (117) b.p.
In Q3 2022, SG&A expenses excluding D&A&I, LTI, share-based
payments and the impact of the Karusel transformation under IFRS 16 as a
percentage of revenue decreased by 122 b.p. to 13.1% (decreased by 160 b.p. to
17.2% pre-IFRS 16), mainly driven by lower staff cost, utilities, other store
costs, third-party services and other expenses as a result of the operating
leverage effect as well as cost control measures.
Staff costs (excluding LTI and share-based payments) as a percentage of
revenue decreased by 68 b.p. year-on-year in Q3 2022 to 7.9%, mainly due to
the operating leverage effect on the back of accelerated revenue growth in Q3
2022, as well as a balanced approach to targeted salary increases.
LTI and share-based payment expenses amounted to RUB 727 million in Q3 2022,
down by 18.2% from RUB 889 million in Q3 2021, as a result of the reassessment
of the KPIs under the LTI programme.
Lease expenses under IFRS 16 as a percentage of revenue in Q3 2022 increased
by 15 b.p. year-on-year to 0.8%, mainly due to a higher number of
revenue-linked leases and reverse franchising agency fees. The decrease in
pre-IFRS 16 lease expenses by 24 b.p. to 4.6% was caused by a positive
operational leverage effect and measures taken to reduce lease expenses,
partially compensated by a higher number of revenue-linked leases.
Utilities costs as a percentage of revenue in Q3 2022 decreased by 14 b.p.
year-on-year to 1.9%, mainly due to electric lighting system optimisation
initiatives, particularly in 24-hour operating stores.
Other store costs under IFRS 16 as a percentage of revenue in Q3 2022
decreased by 13 b.p. year-on-year (falling by 13 b.p. pre-IFRS 16), mainly due
to the positive operating leverage effect.
Third-party service expenses under IFRS 16 as a percentage of revenue in Q3
2022 decreased by 21 b.p. year-on-year to 0.7% (down 22 b.p. to 0.7% pre-IFRS
16), mainly due to lower marketing expenses.
Other expenses under IFRS 16 as a percentage of revenue in Q3 2022 decreased
by 20 b.p. year-on-year to 1.0% (down 19 b.p. to 1.2% pre-IFRS 16), mainly due
to the one-off effect from release of provisions.
Lease/sublease and other income(9)
As a percentage of revenue, the Company's income from leases, subleases and
other operations under IFRS 16 totalled 0.8%, representing a decrease of 30
b.p. year-on-year in Q3 2022 (a decrease of 25 b.p. to 0.6% pre-IFRS 16), due
to lower income from the sale of recyclable materials and lower fixed
lease/sublease fees as percentage of revenue on the back of accelerated
revenue growth in Q3 2022.
EBITDA and EBITDA margin
IFRS 16 Pre-IFRS 16
RUB mln Q3 2022 Q3 2021 change, Q3 2022 Q3 2021 change,
y-o-y, %
y-o-y, %
Gross profit 157,418 142,170 10.7 155,268 140,163 10.8
Gross profit margin, % 24.3 26.2 (186) b.p. 24.0 25.8 (182) b.p.
SG&A (excl. D&A&I, LTI, share-based payments and the effect of the (84,947) (77,882) 9.1 (111,270) (102,076) 9.0
Karusel transformation)
% of revenue 13.1 14.3 (122) b.p. 17.2 18.8 (160) b.p.
Net impairment losses on financial assets (151) (97) 55.7 (151) (97) 55.7
% of revenue (0.02) (0.02) 1 b.p. (0.02) (0.02) 1 b.p.
Lease/sublease and other income (excl. the effect of the Karusel 5,176 5,986 (13.5) 4,139 4,814 (14.0)
transformation)
% of revenue 0.8 1.1 (30) b.p. 0.6 0.9 (25) b.p.
Adj. EBITDA 77,496 70,177 10.4 47,986 42,804 12.1
Adj. EBITDA margin, % 12.0 12.9 (95) b.p. 7.4 7.9 (47) b.p.
LTI, share-based payments and other one-off remuneration payment expenses and (727) (889) (18.2) (727) (889) (18.2)
SSC
% of revenue 0.1 0.2 (5) b.p. 0.1 0.2 (5) b.p.
Effect of the Karusel transformation 267 (93) n/a 267 (93) n/a
% of revenue 0.04 (0.02) 6 b.p. 0.04 (0.02) 6 b.p.
EBITDA 77,036 69,195 11.3 47,526 41,822 13.6
EBITDA margin, % 11.9 12.7 (84) b.p. 7.3 7.7 (36) b.p.
IFRS 16 Pre-IFRS 16
RUB mln 9M 2022 9M 2021 change, 9M 2022 9M 2021 change,
y-o-y, %
y-o-y, %
Gross profit 474,864 411,807 15.3 468,697 405,878 15.5
Gross profit margin, % 25.0 25.8 (79) b.p. 24.7 25.4 (74) b.p.
SG&A (excl. D&A&I, LTI, share-based payments and the effect of the (252,995) (225,427) 12.2 (330,973) (296,994) 11.4
Karusel transformation)
% of revenue 13.3 14.1 (80) b.p. 17.4 18.6 (117) b.p.
Net impairment losses on financial assets (298) (227) 31.3 (298) (227) 31.3
% of revenue 0.02 0.01 0 b.p. 0.02 0.01 0 b.p.
Lease/sublease and other income (excl. the effect of the Karusel 17,117 17,408 (1.7) 15,468 15,046 2.8
transformation)
% of revenue 0.9 1.1 (19) b.p. 0.8 0.9 (13) b.p.
Adj. EBITDA 238,688 203,561 17.3 152,894 123,703 23.6
Adj. EBITDA margin, % 12.6 12.7 (18) b.p. 8.0 7.7 30 b.p.
LTI, share-based payments and other one-off remuneration payment expenses and (1,788) (2,495) (28.3) (1,788) (2,495) (28.3)
SSC
% of revenue 0.1 0.2 (6) b.p. 0.1 0.2 (6) b.p.
Effect of the Karusel transformation (156) (311) (49.8) (156) (311) (49.8)
% of revenue (0.01) (0.02) 1 b.p. (0.01) (0.02) 1 b.p.
EBITDA 236,744 200,755 17.9 150,950 120,897 24.9
EBITDA margin, % 12.5 12.6 (11) b.p. 7.9 7.6 38 b.p.
D&A&I
Depreciation, amortisation and impairment costs under IFRS 16 decreased as a
percentage of revenue by 56 b.p. year-on-year to 6.3% (up 1 b.p. year-on-year
to 3.4% pre-IFRS 16) in Q3 2022, totalling RUB 41,054 million (RUB 22,344
million pre-IFRS 16). This was mainly driven by a positive operating leverage
effect, a reduced investment programme and a lower number of refurbishments
compared to the same period of the previous year, partially offset by
additional impairment. In 9M 2022, depreciation, amortisation and impairment
costs under IFRS 16 decreased by 49 b.p. year-on-year to 6.5% (increased by 6
b.p. year-on-year to 3.5% pre-IFRS 16), totalling RUB 122,994 million (RUB
67,143 million pre-IFRS 16).
Non-operating gains and losses
IFRS 16 Pre-IFRS 16
RUB mln Q3 2022 Q3 2021 change, Q3 2022 Q3 2021 change,
y-o-y, % or multiple
y-o-y, % or multiple
Operating profit 35,982 31,684 13.6 25,182 23,110 9.0
Net finance costs (16,300) (14,757) 10.5 (3,453) (4,411) (21.7)
Net FX result (1,512) (79) 19x (949) (73) 13x
Profit before tax 18,170 16,848 7.8 20,780 18,626 11.6
Income tax expense (4,326) (4,623) (6.4) (4,849) (4,979) (2.6)
Net profit 13,844 12,225 13.2 15,931 13,647 16.7
Net profit margin, % 2.1 2.2 (11) b.p. 2.5 2.5 (5) b.p.
IFRS 16 Pre-IFRS 16
RUB mln 9M 2022 9M 2021 change, 9M 2022 9M 2021 change,
y-o-y, %
y-o-y, %
Operating profit 113,750 89,487 27.1 83,807 65,349 28.2
Net finance costs (51,619) (42,273) 22.1 (15,235) (12,451) 22.4
Net FX result 1,425 698 104.2 (904) 216 n/a
Profit before tax 63,556 47,912 32.7 67,668 53,114 27.4
Income tax expense (20,451) (13,129) 55.8 (21,273) (14,171) 50.1
Net profit 43,105 34,783 23.9 46,395 38,943 19.1
Net profit margin, % 2.3 2.2 9 b.p. 2.4 2.4 0 b.p.
Net finance costs under IFRS 16 in Q3 2022 increased by 10.5% year-on-year to
RUB 16,300 million (down 21.7% year-on-year to RUB 3,453 million pre-IFRS 16),
driven by increasing interest rates in Russian capital markets on the back of
Central Bank key rate raise and increasing interest on lease liabilities
partially offset by decreased interest cost due to decreased lower total debt.
The negative net FX result totalled RUB 1,512 million (RUB 949 million under
pre-IFRS 16) in Q3 2022, compared with negative RUB 79 million (negative RUB
73 million under pre-IFRS 16) in Q3 2021 due to the revaluation of accounts
payable on imports driven by the depreciation of the rouble.
In 9M 2022, the effective tax rate under IFRS 16 was 32.2% (31.4% under
pre-IFRS 16), up from 27.4% in 9M 2021 (26.7% under pre-IFRS 16) due to
one-off effects.
Consolidated cash flow statement highlights
IFRS 16 Pre-IFRS 16
RUB mln Q3 2022 Q3 2021 change, Q3 2022 Q3 2021 change,
y-o-y, % or multiple
y-o-y, % or multiple
Net cash from operating activities before changes in working capital 75,322 68,450 10.0 46,847 42,250 10.9
Change in working capital 16,715 4,917 3x 14,849 4,765 3x
Net interest and income tax paid (25,403) (12,280) 106.9 (12,614) (1,960) 6x
Net cash flows generated from operating activities 66,634 61,087 9.1 49,082 45,055 8.9
Net cash used in investing activities (13,018) (21,454) (39.3) (12,966) (21,708) (40.3)
Net cash used in financing activities (52,512) (39,581) 32.7 (35,010) (23,295) 50.3
Effect of exchange rate changes on cash & cash equivalents 79 (3) n/a 79 (3) n/a
Net increase in cash and cash equivalents 1,183 49 24x 1,183 49 24x
IFRS 16 Pre-IFRS 16
RUB mln 9M 2022 9M 2021 change, 9M 2022 9M 2021 change,
y-o-y, %
y-o-y, %
Net cash from operating activities before changes in working capital 235,896 199,254 18.4 151,756 121,759 24.6
Change in working capital (1,778) 1,000 n/a (3,147) 662 n/a
Net interest and income tax paid (65,348) (46,037) 41.9 (29,037) (16,287) 78.3
Net cash flows generated from operating activities 168,770 154,217 9.4 119,572 106,134 12.7
Adj. net cash used in investing activities(10) (50,043) (63,820) (21.6) (50,233) (64,498) (22.1)
Repayment of short-term financial investments 30,000 - n/a 30,000 - n/a
Net cash used in financing activities (134,855) (97,430) 38.4 (85,465) (48,669) 75.6
Effect of exchange rate changes on cash & cash equivalents (235) (78) 3x (235) (78) 3x
Net increase in cash and cash equivalents 13,637 (7,111) n/a 13,639 (7,111) n/a
In Q3 2022, the Company's net cash from operating activities before changes in
working capital under IFRS 16 increased by RUB 6,872 million (up RUB 4,597
million under pre-IFRS 16) and totalled RUB 75,322 million (RUB 46,847 million
under pre-IFRS 16), reflecting business growth. The positive change in working
capital under IFRS 16 of RUB 16,715 million in Q3 2022 as compared to Q3 2021
was driven by a decrease in inventories on the back of assortment optimisation
processes, as well as a higher increase in other accounts payable driven by
deferred social tax payments.
Working capital highlights (under IFRS 16)
RUB mln 30-Sep-22 31-Dec-21 30-Sep-21
Inventories 172,706 166,840 146,278
Trade, other accounts receivable and prepayments 16,846 20,190 18,334
Trade accounts payable 196,068 212,949 169,268
Provisions and other liabilities 106,931 104,673 88,299
Net interest and income tax paid under IFRS 16 in Q3 2022 increased by 106.9%
year-on-year (up 6-fold year-on-year pre-IFRS 16) and totalled RUB 25,403
million (RUB 12,614 million pre-IFRS 16), driven by higher income tax paid due
to a one-off tax refund in Q3 2021.
As a result, net cash flow generated from operating activities under IFRS 16
totalled RUB 66,634 million in Q3 2022, up from RUB 61,087 million in Q3 2021
(RUB 49,082 million, up from RUB 45,055 million in Q3 2021 pre-IFRS 16).
In 9M 2022, net cash flows generated from operating activities under IFRS 16
totalled RUB 168,770 million, up 9.4% from RUB 154,217 million in 9M 2021 (and
totalled RUB 119,572 million, up 12.7% from RUB 106,134 million in 9M 2021
pre-IFRS 16).
In Q3 2022, net cash used in investing activities, which predominantly
consists of payments for property, plant and equipment, under IFRS 16
decreased to RUB 13,018 million (to RUB 12,966 million under pre-IFRS 16) due
to a lower number of refurbishments, the calendarisation of store openings and
capex optimization. For 9M 2022, adjusted net cash used in investing
activities under IFRS 16 decreased to RUB 50,043 million (RUB 50,233 million
under pre-IFRS 16) from RUB 63,820 million (RUB 64,498 million under pre-IFRS
16) in 9M 2021.
Net cash used in financing activities under IFRS 16 totalled RUB 52,512
million (RUB 35,010 million pre-IFRS 16) in Q3 2022, compared with RUB 39,581
million (RUB 23,295 million pre-IFRS 16) in Q3 2021, driven by higher
repayments of loans. In 9M 2022, net cash used in financing activities under
IFRS 16 increased to RUB 134,855 million from RUB 97,430 million (and
increased to RUB 85,465 million from RUB 48,669 million pre-IFRS 16) in 9M
2021.
Liquidity update
RUB mln 30-Sep-22 % of total 31-Dec-21 % of total 30-Sep-21 % of total
Total debt 208,945 294,338 242,928
Short-term debt 70,497 33.7 87,767 29.8 67,983 28.0
Long-term debt 138,448 66.3 206,571 70.2 174,945 72.0
Net debt (pre-IFRS 16) 169,246 268,276 230,031
Net debt/EBITDA (pre-IFRS 16) 0.89x 1.67x 1.50x
Lease liabilities (IFRS 16) 564,067 577,363 567,701
Net debt/EBITDA (IFRS 16) 2.41x 3.16x 3.05x
The Company's net debt/EBITDA ratio under IFRS 16 was 2.41x (0.89x pre-IFRS
16) as of 30 September 2022.
The Company's debt pre-IFRS 16 is 100% denominated in Russian roubles.
As of 30 September 2022, the Company had access to RUB 469,884 million in
available credit limits with major Russian and international banks.
1. 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 the LFL
calculation starting from the day of the store's opening. We include all
stores that fit our LFL criteria in each reporting period.
2. The pre-IFRS 16 financial measures are calculated by adjusting the
applicable IFRS measures to include fixed lease expenses and fixed non-lease
components of lease contracts and to exclude any gain on derecognition of
right-of-use assets and lease liabilities, depreciation of right-of-use assets
and interest on lease liabilities and gain/loss from sale of asset undersale
and leaseback operations for the proportion of the rights retained recognised
under IFRS 16..
3. Adjusted EBITDA is EBITDA before costs related to the LTI programme,
share-based payments, other one-off remuneration payment expenses and the
impact of the Karusel transformation.
4. Please note that, in this and other tables and in the text of this
press release, immaterial deviations in the calculation of % changes,
subtotals and totals are due to rounding.
5. Net retail sales represent revenue from the operations of X5-managed
stores net of VAT. This number differs from revenue, which includes proceeds
from wholesale operations, direct franchisees (royalty payments) and other
revenue. Including Mnogo Lososya
6. Including Mnogo Lososya
7. Including Vprok.ru dark stores and Mnogo Lososya dark kitchens
8. Including Chizhik and Karusel
9. Mainly consists of lease/sublease income, income from the sale of
recyclable materials and other one-off gains
10. Adjusted for repayment of short-term financial investments
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 9M 2022, revenue totalled RUB 1,900,049 million
(USD 26,908 million**), adjusted EBITDA pre-IFRS 16 reached RUB 152,894
million (USD 2,165 million**), and net profit pre-IFRS 16 amounted to RUB
46,395 million (USD 657 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: 70.6135 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
Maria Yazeva
Investor Relations Officer
Tel.: +7 (495) 662-88-88 ext. 13-147
e-mail: Maria.Yazeva@x5.ru
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