Grocer X5 Q2 Net Profit Falls 6% to $68.9 Mln

Russia’s largest grocery chain X5 Retail Group posted a second-quarter IFRS net profit of $68.9 million, down 6.2 percent from the same period last year, the firm said on Tuesday.

The company’s revenues fell 0.8 percent in dollar terms to $3.987 billion, with EBITDA down 1.6 percent to $280.3 million and EBITDA margin down to 7.0 percent from 7.1 percent in the same period a year earlier. X5’s gross profit fell 3.8 percent to $910.3 million, resulting in a gross profit margin of 22.8 percent.

“In Q2 2012, gross profit margin totaled 22.8 percent, a 70 basis point decrease compared to Q2 2011 primarily due to an increase in logistics expense related to start-up costs for direct imports and opening of a new distribution center as well as shrinkage associated with the seasonal peak in supplies of fruits and vegetables and the effect of inventory clean-up at our warehouses,” the firm said in a statement.

X5’s net profit in the first six months of 2012 fell 20.6 percent to $135.2 million, with revenues falling 0.1 percent to $7.859 billion, EBITDA down 2.1 percent to $554.3 million and the EBITDA margin at 7.1 percent compared with 7.2 percent in the same period last year.

Six-month gross profit was down 0.1 percent to $1.858 billion, resulting in gross profit margin of 23.6 percent.

X5’s net debt to EBITDA ratio increased to 3.40 compared to 3.13 at year-end 2011 due to seasonal short-term movements in cash and cash equivalents and borrowings.

The Company’s total debt stood at $3.691 billion as of June 30, 2012 (at the ruble exchange rate of 32.82), of which 31.7 percent was short-term ($1.170 billion) and 68.3 percent long-term debt ($2.521 billion).

X5 Retail Group N.V.’s global depository receipts have been traded on the London Stock Exchange since Pyaterochka retail chain’s IPO in May 2005 under the ticker “FIVE LI”.

 

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