REG - X5 Retail Group N.V - X5's hard discounter launches in Siberia

X5 Retail NVAnnouncement

20/10/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231020:nRST7126Qa&default-theme=true

RNS Number : 7126Q  X5 Retail Group N.V.  20 October 2023

X5'S HARD DISCOUNTER LAUNCHES IN SIBERIA

Novosibirsk, 20 October 2023 - X5 Group ("X5" or the "Company", LSE and MOEX
ticker: FIVE), a leading Russian food retailer, announces the opening of its
Chizhik hard discounter stores in the Novosibirsk, Tomsk and Kemerovo Regions,
as well as in the Altai Territory. The chain has launched 11 stores in 7
cities, 1  (#_ftn1) with the total count of Chizhik stores in these regions
expected to reach 45 by October-end. Chizhik is planning to launch up to 90
stores in Siberia by the end of 2023.

 

Chizhik stores offer a small but sought-after selection of value-for-money
products. The Chizhik store assortment features approximately 700 SKUs,
including over 400 private label items that are unique to the chain.

 

A carefully selected product mix and continuous product quality assurance are
among the key factors that set Chizhik apart. Only those products that have
been top-rated by tasters hit the shelves. All suppliers are audited, with
Chizhik verifying product formulation and label claims as well as compliance
with Russian state standards and other requirements. Chizhik's products are
thoroughly tested by independent accredited laboratories. The chain also acts
quickly on any customer feedback flagging potential quality issues, with
ad-hoc supplier audits performed when non-conforming products are identified.
In addition, Chizhik uses customer feedback to refine product formulations and
ingredients or improve packaging, and offers customers a full refund with no
receipt required if they are unhappy with the taste or quality of any product
purchased at the chain.

 

Most SKUs offered by Chizhik are exclusive products that can rival major
brands in terms of taste and quality while being more affordable. Chizhik also
stands out for its unique Nado Uspet ("Catch the Price") zone that highlights
the best deals in household, kitchen, garden goods, children's goods and other
categories - all in one place. This highly popular selection is rotated every
week.

 

The new stores will be supplied from Chizhik's distribution centre in
Novosibirsk with shipments from both nationwide and local suppliers. The
10,700 square metre multi-temperature warehouse launched this week has a
capacity to store up to 11,000 pallets and can continuously serve over 200
Chizhik stores.

 

Chizhik has already created 360 jobs in the four regions, expecting to add
another 200+ jobs in the Novosibirsk, Tomsk and Kemerovo Regions and the Altai
Territory by the end of the year.

 

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 totaled 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 2023, revenue totaled RUB 1,468,407 million
(USD 19,095 million**), adjusted EBITDA pre-IFRS 16 reached RUB 100,748
million (USD 1,310 million**), and net profit pre-IFRS 16 amounted to RUB
41,661 million (USD 542 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                                                 Maria Yazeva
 Head of Corporate Finance and IR                                 Investor Relations Officer

Tel.: +7 (495) 662-88-88 ext. 13-312
Tel.: +7 (495) 662-88-88 ext. 13-147

e-mail: Polina.Ugryumova@x5.ru (mailto:Polina.Ugryumova@x5.ru)
e-mail: Maria.Yazeva@x5.ru (mailto:Maria.Yazeva@x5.ru)

 

 

 

 

 

 

 

 

 1  (#_ftnref1)

Novosibirsk, Aleksandra Yeryomina 18/6; Novosibirsk, Petukhova 12/1;
Novosibirsk, Fedoseyeva 8; Novosibirsk, Kochubeya 4

Novokuznetsk, Toreza 95B

Kemerovo, Patriotov 33

Barnaul, Popova 80; Barnaul, Energetikov Avenue 13

Tomsk, Berdskaya 25B

Ob, Lomonosova Building 38/1

Leninsk-Kuznetsky, Suvorova 19/1, Building 1

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  MSCEAAENFSADFFA