X5 reports 14.1% revenue growth in 2020. Recommended final dividend RUB 110.49 per GDRX5 Retail Group N.V. released its 2020 Annual Report, including audited financial statements prepared in accordance with International Financial Reporting Standards, as adopted in the European Union.
X5 Chief Executive Officer Igor Shekhterman said:
"We delivered growth and margins in line with our strategic targets in 2020, despite the challenger presented by the COVID-19 pandemic, by quickly and efficiently adapting our logistics and store operations to the rapidly-emerging challenges. We maintained smooth operations during periods of peak demand, implemented safety procedures to protect customers and employees and worked together with our main competitors to ensure key food staples remain accessible to the widest circle of the Russian population
"X5 was fortunate to enter into 2020 having already made significant progress on its digital transformation and with resilient business processes in place. This, combined with the hard work and dedication of every employee, helped us to deliver strong results in 2020, maintaining margins while rapidly accelerating the expansion of our digital businesses and adhering to our updated dividend policy. We made good progress on all key strategic initiatives, rolling out big data-driven products for our business that are helping to improve the efficiency of our operations, accuracy of decision-making and, most importantly, our ability to meet fast-changing customer demand
"X5 is now the #1 Russian e-grocery operator, thanks to our rapid expansion of Perekrestok Vprok and express delivery from Pyaterochka and Perekrestok stores. The gross merchandise value (GMV) of our online businesses rose 347% to RUB 21.9 billion (VAT included) in 2020. X5 delivered 7.9 million online orders placed via its own web and mobile platforms in 2020, up from 1.4 million in 2019.
"We maintained our focus on sustainability, adopting specific strategic targets in areas like reducing greenhouse gas emissions and solid waste disposal, supporting health lifestyles and helping out local communities where we operate.
"We proceeded to implement our sustainability priorities, with specific medium- and long-term goals approved that are in line with the UN Sustainable Development Goals that X5 can contribute to achieving. Some particular achievements I would highlight are the development of sustainable packaging guidelines for suppliers and joining the SBTi with the goal of achieving carbon neutrality by 2050.
"X5 entered 2021 on a strong footing as the leader in both online and offline grocery in Russia. The GMV generated by express delivery and the Okolo delivery aggregator in February 2021 totalled RUB 2.1 billion, while the number of orders exceeded 1.3 million. Perekrestok Vprok boasted a GMV of RUB 1.7 billion, up by 122% vs February 2020. The share of digital sales in X5's total revenue exceeded 2% during the second month of the year and reached 4.5% in Moscow and the Moscow region during the same period. These results support our view that many of the recent changes in consumer behaviour are sustainable, and we plan to continue adapting our business to meet our customers' needs with the help of innovative technologies and data-driven tools."
X5 Group is a leading Russian food retailer (LSE and MOEX ticker: "FIVE")