Supermarket retailer X5 has seen an 8% fall in its net profit for the first nine months of the year to $168 million.
The company says it’s the result of the costly integration of rival Kopeyka. It completed the purchase of the company for around $16 million during the summer.
The re-branding of the 650 Kopeyka stores across Russia to Pyaterochkas has been taking place during the year, and the company says it’s a one off hit.
X5 says it’s also been affected by foreign exchange losses due to a weaker rouble.
Andrei Gusev, X5 Retail Group CEO, says now the re – branding has been completed the company is “now delivering solid double-digit sales growth”. Net sales jumped almost 50% in 9M 2011 to $11.5 billion, with Anton Safonov, Investcafe analyst expecting further growth. “Also, another good news is a confirmation of the forecast to open up 540 stores this year,” Safonov concluded.
The Company reported under IFRS.