X5 Retail Group Reports 27.3% Net Retail Sales Growth in 2015Amsterdam, 26 January 2016 - X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces its preliminary consolidated net retail sales and operational results for the fourth quarter (Q4) and full year (FY) ended 31 December 2015(1).
(1) Numbers in this press release are preliminary and have not been reviewed or audited by the Company’s auditor.
Chairman of the Supervisory Board Stephan DuCharme said:
"Despite a challenging economic environment in Russia, we delivered a strong set of numbers in 2015 and grew faster than the Russian food retail market average. We are especially proud of our 29.6% year-on-year rise in selling space: the Company added 760.9 th. sq. m. during 2015, 80% of which was attributable to organic growth. This is a truly impressive feat not only in terms of year-on-year expansion, but also measured by the absolute volume of space added.
“Growth in selling space, combined with continued adjustments to our value proposition for customers, particularly in the current environment, helped to make 2015 our best year since 2011 in terms of retail sales growth, and our best ever year for organic growth: 2015 net retail sales increased by 27.3% year-on-year, with like-for-like sales up to 13.7%.”
Chief Executive Officer Igor Shekhterman added:
"Looking forward to 2016, we feel that we have the right strategy and the right team in place to tackle the challenges that lie ahead. We delivered excellent performance in a challenging 2015, and I am confident we will continue to achieve strong growth based on creating value for our customers as we build the best modern retail offering in Russia."
FY 2015 Highlights
• X5 delivered total net retail sales growth of 27.3% year-on-year (y-o-y), the Company’s fastest pace of growth since 2011.
• Net retail sales growth of RUB 172.2 bln was the highest in X5’s history.
• Net retail sales growth was driven by a 13.7% increase in like-for-like (LFL) sales and a 13.6% sales growth contribution from a 29.6% rise in selling space.
• LFL sales growth (y-o-y) improved across all three of the Company’s major formats.
• LFL traffic growth accelerated to 2.3% in 2015, up from 0.6% in 2014.
• The Company added a record 1,537 new stores in 2015, vs. 939 stores in 2014.
• Net additional selling space of 760.9 th. sq. m., driven primarily by organic expansion, was the largest annual opening programme delivered by X5.
• X5’s proximity store chain Pyaterochka added 668.4 th. sq. m. of net selling space, a record for any Russian food retail brand in a single year.
Q4 2015 Highlights
• Total net retail sales growth remained strong at 26.3% y-o-y, while decelerating slightly vs. Q3 2015 due to slowing food price inflation and a higher comparative base, especially vs December 2014.
• Pyaterochka was the main driver of growth in Q4 2015: Net retail sales rose by 32.8% y-o-y, driven by 12.6% growth in like-for-like (LFL) sales and a 20.2% contribution to sales growth from a 38.1% increase in selling space.
• In Q4 2015, the Company demonstrated strong LFL traffic growth of 2.3% y-o-y, compared to a decline of 0.4% in Q4 2014 and growth of 1.6% in Q3 2015.
• X5 added 508 net new stores in Q4 2015, contributing to additional net selling space of 253.5 th. sq. m. in the quarter.
X5 Retail Group
X5 Retail Group is the leading food retailer in Russia. X5 shares are listed on London Stock Echange (LSE) in the form of Global Depositary Receipts. The Company operates several retail formats, including the chain of conveniently located proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand and Express convenience stores.