X5 Reports Adjusted EBITDA Up By 33.8%
Russian food retailer, X5 Retail Group, has reported revenue growth of 27.8% and an adjusted EBITDA up by 33.8%. They also reported increased market share from 6.3% in 2015 to 8% last year.
Like-for-like sales increased by 7.7% year-on-year and improved across all three of the company’s major formats.
Appetite For Growth
X5 operates several retail formats. These include a chain of proximity stores under the Pyaterochka brand, a supermarket chain under the Perekrestok brand, a hypermarket chain under the Karusel brand and express convenience stores under various brands.
The company added 2,167 new stores in 2016, versus 1,537 new stores in 2015.
Pyaterochka was the main driver of growth where net retail sales rose by 32.5% year-on-year (9.1% growth in like-for-like sales and 23.4% growth from a 37.4% year-on-year increase in selling space).
Gross margin decreased by 34 basis points year-on-year to 24.2%.
Adjusted SG&A expenses as a percentage of revenue declined year-on-year by 78 basis points to 17.2%.
Looking To The Future
“Looking ahead to 2017, while we do not expect meaningful positive macroeconomic developments in Russia in the medium term [...] we remain confident about X5’s potential to deliver sustainable growth [...] We are now focussed on achieving our target market share of 15% by the end
of 2020”, X5’s chief executive officer, Igor Shekhterman announced.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Gavin Ryan. Click subscribe to sign up to ESM: The European Supermarket Magazine