X5 Net Profit Falls 32% to $66 Mln in Q1

Russia’s largest grocery chain, X5 Retail Group, saw first quarter 2012 net profit fall 31.6 percent year-on-year to $66.3 million to IFRS, the company said in a statement on Thursday.

X5’s net profit was above a consensus forecast of analysts polled by RIA Novosti of $64.6 million, with first quarter Earnings Before Interest, Taxation, Depreciation, Amortization (EBITDA) falling 2.5 percent to $274 million and revenue growing 0.7 percent year on year to $3.871 billion.

X5’s Selling, General and Administrative expenses, as a percentage of revenue, increased by 80 basis points in the first quarter of 2012 to 21.2 percent.

“The significant step-up in store openings, and associated SGA expenses, in the second half of 2011 as well as the continued ramp-up of these and Kopeyka stores’ sales densities, negatively affected our SGA expenses’ as a percentage of net sales,” the company said.


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