X5 Reports Second Quarter 2010 Results
OREANDA-NEWS. August 26, 2010.
Q2 2010 Highlights |
H1 2010 Highlights |
• Net sales increased 17% year-on-year in RUR terms to RUR 79,850 mln or 25% in USD terms to USD 2,641 mln; • Gross profit totaled USD 638 mln, for a gross margin of 24.1%; • EBITDA amounted to USD 220 mln, for an EBITDA margin of 8.3%; • X5 reported a net profit of USD 25 mln affected by a foreign exchange (FX) loss; |
• Net sales increased 18% year-on-year in RUR terms to RUR 155,853 mln or 30% in USD terms to USD 5,184 mln; • Gross profit totaled USD 1,232 mln, for a gross margin of 23.8%; • EBITDA amounted to USD 399 mln, for an EBITDA margin of 7.7%; • X5 reported a net profit of USD 104 mln; |
• X5 reiterates 2010 sales growth and CapEx outlook, as provided on 27 May 2010. |
X5 Retail Group CEO Lev Khasis commented:
“X5 delivered solid second quarter sales growth and strong EBITDA margin. Discounters again led the industry in net sales and like-for-like sales growth, hypermarkets’ results were positive while supermarkets are still hampered by trading down trends and we are positioning the format for an upturn to benefit from future economic recovery. X5 is driving positive business momentum – with increased market leadership, stepped up pace of new store openings, completion of Paterson integration and continuous focus on quality, convenience and value for customers – giving us confidence in our outlook for the year.
“Strong EBITDA margin of 8.3% this quarter was in line with our expectations and considerably higher than in the first quarter of 2010. We continued to strengthen X5’s value propositions but at a reduced level of gross margin reinvestment. SG&A as a percent of sales rose slightly year on year as X5 incurred increased costs in some areas, including
competitiveness and efficiency benefits.”
X5 Retail Group CFO Evgeny Kornilov added:
“We are well positioned to support X5’s growth objectives while protecting the Company’s balance sheet and staying within our CapEx limits. The Company has access to RUR-denominated Sberbank’s committed credit line for refinancing X5’s USD 1.1 bln syndicate loan later this year. Investors showed their confidence in X5 when the Company successfully fulfilled its obligations in respect of RUR 9 billion in corporate debt with holders of 85% of the issue electing to keep their bonds with maturity in July 2014. There were temporary movements in liquidity as the bonds were classified as short-term debt at June 30 and reverted to long-term debt following the put exercise in July
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